Since the beginning of the pandemic, the real estate market has been nothing short of a frenzy. In particular, the single-family home market has led the charge as more Americans have sought additional space and privacy. Initially, this resulted in more Americans fleeing big cities and particularly multi-family units, such as condos and townhouses. As we begin to recover and find ways to deal with the pandemic, we are beginning to see more people coming back to the multi-family housing market. Of course, a portion of these multi-family buyers may have been priced out of the single-family market as well. Whether for a permanent residence or a second home, multi-family sales are on the rise.
What the data shows
Recently, Realtor.com® analyzed cities with at least 250 condo, cooperative, and townhouse listings and looked at which ones saw the largest median list price growth from August 2020 to August 2021. Not surprisingly, 6 coastal cities in Florida made Realtor.com’s top 10 list for growth in condo and townhouse prices. Below is a rundown of the 6 Florida cities and how they ranked:
- #1. Destin, FL: Annual condo price growth: 67%; Median condo/townhouse price: $694,050
- #2. Panama City, FL: Annual condo price growth: 58%; Median condo/townhouse price: $395,570
- #3. Naples, FL: Annual condo price growth: 37%; Median condo/townhouse price: $425,050
- #5. Panama City Beach, FL: Annual condo price growth: 32%; Median condo/townhouse price: $515,000
- #7. North Miami Beach, FL: Annual condo price growth: 22%; Median condo/townhouse price: $849,550
- #10. Delray Beach, FL: Annual condo price growth: 17%; Median condo/townhouse price: $192,550
The demand for South Florida real estate is projected to remain strong for the foreseeable future. Although single-family homes continue to lead with regard to demand, we are also seeing a rebound in the condo and townhouse markets. There are likely several reasons for this increased demand in multi-family units. To start, it appears that more Americans are opening back up to multi-family housing during the current pandemic. In addition, we are also seeing a spillover effect from frustrated buyers in the single-family home market. Whether they have been priced out of the market or simply tired of being outbid for properties, many of these buyers are considering condos and townhouses again. Lastly, we are also continuing to see heightened demand for second/vacation homes in South Florida. These factors combined have created for a strong multi-family housing market.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!