SARASOTA-MANATEE-NORTH PORT (SNN TV) – The Suncoast ranks among the top 10 of most over-valued housing markets in the country.
In fact, 6 of the top 10 markets were all in Florida, with the Cape Coral-Fort Myers market being the most overvalued and Tampa also making Top 10. The study was conducted by researchers at Florida Atlantic University and Florida International University.
According to the Herald-Tribune, home buyers in Sarasota-Manatee are paying nearly 50% more than they should based on historical trends in the market. In December, buyers paid more than $494,000 dollars on average for a home, when they should have paid around $333,000.
The North Port-Sarasota-Bradenton market ranked number 10 on the list. The other overvalued markets are Deltona, Palm Bay-Melbourne, and Lakeland.
Why are Tampa, Manatee, Sarasota, and Fort Myers all on the list? An FAU economist says Southwest Florida’s population growth along with a significant shortage in housing are the causes. Hurricane Ian exacerbated the issue. Since hurricanes haven’t slowed Florida’s population growth, researchers say you should expect this problem to last a while.
Researchers say Florida’s relatively low incomes will make housing affordability an issue for a long time.