Did you know? The fertility rate is at its lowest level in 100 years. In 1985, the percentage of home buyers with children was 58%. As of 2020, this percentage dropped to 33%. Interestingly, this trend has been observed across multiple racial groups as follows:
- non-Hispanic white women = -2%
- Hispanic women = -1%
- Black women – -1%
What does this mean for real estate?
As expected, this shift could have some dramatic implications for the real estate market for years to come. For example, buyers with children typically put a higher importance on location and school zones. In addition, the research shows that on average buyers with children typically purchase a four-bedroom home with approximately 2,200 square feet. As for buyers without children, the average home purchased is typically three-bedroom with 1,800 square feet.
Looking forward, it is predicted that fertility rates among women will continue to remain low. Unfortunately, working mothers have left the workforce at higher rates than fathers during the pandemic. It is largely believed that the main culprit for this is the increased household demands combined with a decrease in jobs in the service sector. With a further strain on finances, many couples have decided to postpone having children altogether.
Summary
What the drop in fertility rates means for South Florida real estate is yet to be determined. With the significant increase in Americans moving to The Sunshine State we do not expect this area to be as heavily impacted as other parts of the country. In addition, more companies are opting to relocate to South Florida as well. Typically, a thriving economy bodes well for fertility rates and this is precisely what we expect to see for the foreseeable future in South Florida.
Do you have questions about the South Florida real estate market? We can help. Contact Live South Florida Realty, Inc. today!
