How has the real estate market fared in Broward County?

Business in Broward County has been thriving. Among the three counties—Miami-Dade, Broward, and Palm Beach—Broward holds a strategic position, being in proximity to both seaports and airports. Although South Florida’s market faced inventory shortages, the demand remained high. Initially impacted by COVID-19 in March with a two-month lull, the demand surged afterward, witnessing an even more intense drive towards the end of the year. Single-family home prices saw a substantial 13.2% year-over-year increase in December 2020, coupled with a significant rise in sales. This trend is anticipated to persist due to the inventory shortage, soaring demand, and the allure of low-interest rates.

What factors are contributing to the real estate growth in Broward County?

The pandemic has shifted people’s focus toward acquiring more space and flexibility, especially with remote work becoming prevalent. Broward County offers an affordability edge compared to Miami and Palm Beach, making certain areas within it still accessible. COVID-19 accelerated migration patterns, drawing high-net-worth individuals from high-tax regions to South Florida. Buyers from densely populated areas capitalized on remote work to acquire larger properties at lower prices while relishing the appealing South Florida lifestyle. Low interest rates are another key driver, enabling individuals who might otherwise struggle to afford homes to make purchases, affording larger properties with more manageable mortgage payments.

How does the association strive to maintain housing affordability?

Our public policy team has long advocated for changes to enhance housing affordability. While our market boasts a healthy supply of condominiums suitable for the workforce, the challenge remains in down payments. Fannie Mae and Freddie Mac impose geographic-specific condo considerations for Florida, lending only 75% of the loan-to-value (LTV) for condos with particular limitations. This leaves first-time buyers scrambling to cover the remaining 25% for a down payment. In comparison, buyers in other states or territories receive a 90% LTV, requiring a mere 10% down payment. This discrepancy, as seen in a $200,000 purchase, poses a significant barrier to affordable homeownership in Florida.