America’s rich and famous are upping sticks from higher tax states and making their homes in the sunshine state. As a result, the luxury property market is in super-boom mode.
In the space of a year, one luxury Florida home has been sold twice. In doing so it fetched its short lived owners an eye watering profit of $8.7 million. It’s a vivid indication of just how hot the Florida luxury market is right now.
Located in Highland beach, a short distance from Palm beach, this property commands 120 feet of ocean front, has seven bedrooms and nine bathrooms and features a fortress like construction designed to withstand superstorms. However, it was stand out features such as a floor made from lava from Mount Etna which makes this such a special home.
It was sold to a family earlier in the year for what was then a record $21.57 million to a couple. Seven months later, though, they were on the move again with their eyes on something even bigger and better. In that short time, though, they saw its value rocket by almost 40% to just over $30 million.
What’s more, this isn’t a one off. Prices in the town are soaring everywhere. According to the Elliman Report the average price for a single family home in Highland Beach rose 178.4% over the past year to $9.8million. That’s far outstripping nearby Palm beach which had to make do with a more modest 111%.
Indeed, the whole luxury market in Florida is on fire thanks to a combination of factors converging at the same time. Year round sunshine, low taxes and a growing international interest have all helped to boost Florida’s market.
Meanwhile the pandemic has given it an even bigger boost. While most of the country entered lockdown, Florida remained more or less open. Shops, bars and restaurants kept their doors open. It was a move which was criticised by health experts, and a recent surge in Covid-19 suggests they may have had a point. However, for people who were tired of lockdown it made Florida even more attractive than ever.
This, coupled with pent up demand after a slow 2020, has seen activity surge throughout the year, as people look for homes with wide open spaces and plenty of warm sunshine.
The question now is can this last? The answer to that is: quite possibly. There are some headwinds. The entire state is likely to suffer from climate change, and COVID-19 is making a bit of a come back. Previous booms have come with a correction, but there are a number of long term trends which suggest we will be seeing more sustainable growth into the future.
Florida’s economy is hot, especially in the tech sector. California’s tech millionaires are leaving Silicon Valley and heading east. The rise of digital technology is also making people more footloose. Employees are increasingly working freelance and remotely, which means they are no longer tied to the office. Homeowners with more say in where they live are looking to Florida and they like what they see.
All the signs are good. 2021 has already been a record year and there’s no reason things can’t continue.