Florida condo prices are rising as condo owners look to move closer to home.
Now, the industry is seeing a wave of new developments, many of which are coming in from outside the state.
We asked a condo agent in Tampa, Florida, if there’s a condo boom in the Sunshine State.
“Yeah, I think there’s going to be a condo explosion in the near future,” she said.
“I mean, there are a lot of condo sales coming out of Florida right now, and I don’t know what the boom is going to look like in the next few years.”
In Florida, there’s one condo boom that’s already underway.
The state has more than 25,000 condo units on the market, and there are nearly 5,500 condo developments currently underway in the state, according to the Florida Real Estate Association.
But that’s just one of many condo developments that are popping up around the country.
The growth of condo development is not a one-time phenomenon.
The number of condo units in the country grew from 6.6 million in 2000 to 12.1 million in 2016.
That’s a big increase, and it’s a trend that’s expected to continue.
There are more condos on the block than apartments in every state.
Florida has more condo sales than any other state in the nation, and many are located in the Central Florida and Florida Keys.
“There are a number of factors driving the growth in condo sales, but the one thing that I can tell you is Florida is a pretty affordable place to buy,” said Robyn Josten, a broker with Bohnet Group in Miami.
Josten said Florida condo sales are “not as concentrated” as in other states.
She said the state has about 12% of the nation’s population.
And she pointed to a recent survey from real estate analytics firm Trulia that found that the average condo price in Miami-Dade County, the region’s most expensive, is now $3,000 more than it was just a year ago.
Josie Schlosser, who owns and operates two condos in Miami and another in Palm Beach Gardens, said condo sales have been surging in the city since the end of last year.
“We’re seeing condo sales increase everywhere in the metro area, especially in South Beach,” she told Business Insider.
“That was the last time condo sales were this high.”
The growth of condos in Florida has also been fueled by the state’s booming economy, which is expected to increase by 8% from 2020 to 2024, according the Bohnets.
There were 8.4 million jobs in the Florida economy in 2017, according a report from the Florida Association of Realtors.
The jobs in Florida are expected to grow by 8.8% between 2019 and 2021.
In 2017, Florida’s unemployment rate was 7.4%, according to Bohnett.
The average cost of a home was $7,300, according an online real estate listing from Zillow.
And there are fewer than 10,000 people employed in Florida right at the peak of the condo boom.
Jussi Bohnetts said the condo surge in Florida will ultimately result in more affordable housing.
“It’s going in the right direction,” she explained.
“And it will help keep the economy growing.”
But, there is one area that will likely see a lot more growth.
Jostens said the next wave of condo developments will likely be coming from outside of Florida.
The trend is likely to be more of a suburban development, like in Orlando, she said, where there are more luxury condos.
The rise of condo-friendly condos may be driven in part by a trend toward millennials and millennials who are buying homes as they age.
There have been several recent surveys that show millennials are buying more condo units, and the trend has been seen in other areas of the country as well.
The Bohnettes said that’s what’s fueling the condo market growth in Miami, as well as in Orlando.
“They’re buying condos in Orlando and Miami,” Jostes said.