Florida Property | Lifestyle, Housing & Economy

We know why everyone wants to move to Florida, but what are the lifestyle and economic trends which are relevant to investors in Florida real estate?

As with the UK, the recession has led to many people losing their homes and being forced to rent, thus creating a renter's nation. The end result has been many Florida real estate foreclosures.

Fact: Nearly half of Floridians are underwater on their mortgages and one in two residential mortgage holders owe more in debt than their home is worth. As a result there is a current short term glut of Florida houses for sale.

Fact: Mortgage rates have increased from historical lows, but credit is still constrained.

Fact: Florida's housing construction bottomed out in 2009 and repossessions have almost taken the place of new builds. However, this trend is simply recycling and not increasing housing stock.

Fact: This means supply falls as demand increases. Longer term, once all the repossessions have been snapped up, both rents and property prices will rise to reflect the changing balance of supply and demand. There may be an excess of Florida property for sale today, but that situation is going to change in coming years.

 Dr. Sean Snaith Ph.D (pictured), economist and director of the University of Central Florida's Institute for Economic Competiveness, forecast economic indicators through 2013. Snaith is said to be one of the USA's "most accurate forecasters" (Bloomberg News).

In the report, released December 2010, Snaith likens Florida's economy to "a jumbo jet that is still sitting on the tarmac after being grounded for three years following a harrowing emergency landing due to engine problems."

Snaith reports a "long, slow and steady" decline in unemployment and "modest growth" in personal income, average annual wage and population.

"Strong growth" is also reported in various business sectors, including: professional and business services; trade, transportation and utilities; education and health; manufacturing; and leisure and hospitality.

Florida's recovery is being driven by three factors, all of which will influence the pricing of Florida property

• Continued migration
• Economic recovery

• Changing balance of housing supply and demand

What does this mean for Florida real estate from the investor perspective?

• High and continued rental demand
• Tenants who are able to afford to pay their rent
• Good capital profits as Florida property price recover

What to do now?

Watch Rod's Florida videos, recorded during his recent visit

Want to know more about investing in Florida@ Download and read The Florida Property Investment Guide.

Want to know more about investing in the USA in general? Download and read our USA Investment Guide.

Want to checkout property we currently are offering in Florida? Visit our Available Property in the USA section

Like to discuss your plans for investing in Florida property and get answers to questions? Please call for a no obligation chat with our USA Portfolio Managers, David Ball and Russell Bonner, on 01273 447 300 (UK time, Mon-Fri 0900hrs-1730hrs).

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