2020 was certainly a transformative year for the real estate market. In particular, the luxury market saw some consistent trends as well. Record-low interest rates paired with demand at an all-time high for single-family homes, resulted in extremely low inventory levels and multiple bidding wars across several luxury markets. South Florida, in particular, has also seen a significant increase in the number of Americans relocating to The Sunshine State. This has further contributed to the incredible demand for luxury single-family homes.
What is the 5 year forecast for the luxury home market?
Several new trends in the luxury home market surfaced during the pandemic. A few of these trends that should remain for the foreseeable future include:
- The home office: With a higher percentage of the luxury market being represented by buyers with white collar occupations, many of these buyers have the flexibility to work remotely from home. Needless to say, the need for a home office is greater than it has ever been. As a matter of fact, many dual-income families currently have two occupants in need of private home office space. With many remote working environments becoming permanent, the need for home office space is here to stay.
- Demand for a second home: For many luxury home buyers that may be in a hybrid role splitting time between a physical office and a home-based virtual office, the second home has become even more popular. For this reason, we have seen the second home market explode in popularity in South Florida during the pandemic.
- Demand for single-family detached homes: Consistent with the theme of more space, the demand for single-family detached homes has been stronger than ever. Not only do these homes offer more space, they also offer more privacy as well. We expect the continued demand for single-family detached homes to remain for the foreseeable future as well.
In closing, the luxury home market in South Florida is projected to remain as strong as ever. Perhaps the biggest factor impacting this sector is the explosion in remote working flexibility being offered by many employers. It is assumed that this trend will continue moving forward, with many employers even opting to have their workforce operate solely remotely. At this point, it is safe to say that the world has been forever changed due to the COVID-19 pandemic. Based on the past year, we expect the migration of many Americans to Florida to continue. In the past, this was mainly limited to retirees looking to enjoy their winters in South Florida. Now, we are seeing much more working aged Americans relocating to The Sunshine State.
Are you ready to work from your luxury home in paradise? We can help. Contact Live South Florida Realty, Inc. today!