Boca Raton, Florida – Southeast Florida’s hot housing market shows no signs of slowing down, and in fact, that’s worrying real estate economists.
While most of the country’s home prices are returning to more normal long-term trends, new data from researchers at FAU and FIU finds that metropolitan Miami is the only area where home prices aren’t falling.
Additionally, the price-to-rent ratio is at its highest in nearly nine years.
“In terms of rapidly rising rents, I think rental prices are over. Unfortunately, what we’re looking at is that rents are probably not going to go down. Incomes aren’t going up. It’s not going up at the same level. Incomes in Florida are going up pretty fast, but not as fast as rents are going up, which makes this unaffordable nature of housing even bigger.” said Dr. Ken Johnson of FAU School of Business.
He added that Southeast Florida is currently in the top 10 best places to live in the nation.
Mr Johnson does not believe there will be a real estate crash like the one that occurred 16 years ago, but his team said the housing affordability crisis was not a good sign.
Researchers said the typical home in South Florida is overvalued by about 36 percent.
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