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Sources:
1. https://www.eenews.net/articles/fla-lawmakers-force-homeowners-to-buy-flood-insurance/
2. https://quotewizard.com/home-insurance/flood-insurance-florida
3. https://www.foxbusiness.com/real-estate/florida-real-estate-bombshell-could-destroy-wallet
Many business owners, entrepreneurs, investors and every day Americans moved to Florida over the last few years. At the height there were over three thousand people per day moving to Florida. This fueled housing prices to go sky high and allowed real estate investors and Florida home owners to cash in on their new found equity.
However looking back on it, was 2020 - 2021 the best time to be a Florida home seller in US history? Now we are starting to witness housing prices soften in FL but on top of that we are witnessing home insurance prices skyrocket and now mandated flood insurance is coming.
Did you know nearly 2,000,000 people in Florida live in an HOA and now HOA's will have to start increasing their reserves to meet new standards and they will be getting these reserves from the property owners and landlords of these properties.
Simply look at the math, many of these properties were purchased with low interest rate mortgages and now mortgage rates have increased from 3% to roughly 7% - insurance rates are sky high and rents are softening alongside new costs associated with property ownership for investors.
This is going to equate to a disaster for many. Do you think FL is in a massive housing bubble? The data indicates we are.
#florida #housingmarket #housingbubble