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studentsFlorida Polytechnic students may soon be in for an unpleasant surprise, vis-à-vis where they are to lay their hat since the school’s new dorm is unlikely to come through. This will force hundreds of such students to find accommodation off-campus in the new academic year. Currently the educational institution is in negotiations with a motel and apartment building in Lakeland to see if either of those options can provide a solution. If that deal does materialize, buses will be run between the housing and university, 10 miles each way.

But that is just the short-term solution. In the meantime, the Orlando UCF Downtown campus is intending to create around 4,070 construction jobs in its student housing building. GAI Consultants, Valencia College and UCF are together looking to build a downtown campus that would ultimately house up to 13,000 students and 1,900 employees by the year 2019, the study said. The 68-acre site known as Creative Village would feature: 3,890 structured parking spaces, 950 residential units and 550 units for student housing, the latter of which will be privately developed.

So it seems like that the solution for now is temporary and, in the future, Florida’s Poly students will be housed as necessary.

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florida-homeIt seems like South Florida’s housing market might be on the road to stability. November 2014 scores for Broward, Miami-Dade and Palm Beach were 72.2 on the Multi-Indicator Market Index which is 10.57 percent higher than last year’s figures. Only three cities had larger yearly gains (Chicago, Denver and Las Vegas).

What is also positive for the region’s housing market is that it looks like this upward swing is set to continue in 2015. Indeed, according to Stan Humphries, Chief Economist at Zillow, low-end homeowners are finding it easier to sell now that lost equity is being regained. As a domino effect, more properties will be on the market for those young professionals looking to buy in 2015.

In addition there has also been a plummet in the distressed market. Foreclosures and short sales are not as common. Indeed, figures showed a nearly 40 percent decrease in short sale closed sales from November 2013 to November 2014.

Thus it should come as no surprise that Deputy Chief Economist at Freddie Mac, Len Kiefer, found “consistent improvement” in the market since May 2014. But he does caution that affordability “is starting to be an issue in South Florida.” Thus while figures indicate that there is good news ahead, it’s not all going to be plain sailing in the region.

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by Ricardo Mangual
by Ricardo Mangual

Special needs adults in the Brevard region will soon be able to apply for one of the 125 units at a new innovative residential campus. Conveniently located near the Hammock Landing shopping mall, Brevard’s Promise is intending on building three three-floor apartment buildings, together with a 13,000 sq. ft. clubhouse.

This initiative is a real dream come true for parents of now adult children with special needs. One of these such individuals is the organization’s own founder and executive director, Betsy Farmer, whose child Luke has Down Syndrome. The organization was founded by Betsy and Luke back in 2005. The project received $11.8m in federal low-income housing tax credits by the FHFC along with a further $3m developmental disability grant. In addition, the project received $1m from a state apartment-initiative loan program.

Similar packages were received last year for the construction of Jacksonville’s Arc Village and Noah’s Landing village for disabled people.

This is hopefully just the beginning. It is anticipated that the organization will launch a variety of businesses to give jobs to between 80 and 90 percent of its residents with special needs.

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by Janie Coffey
by Janie Coffey

Real estate in Florida is encountering an upswing. According to Florida Realtors® data, October witnessed a higher inventory, greater median prices and more closed sales.

This is not just specific to Florida however. Indeed, as Sherri Meadows, President of Florida Realtors® and Keller Williams, the firm’s CEO and team leader pointed out:

“October marks the 35th month in a row that statewide median sales prices rose year-over-year for both single-family homes and townhouse-condo properties. The state’s housing market continues to benefit from more people moving to Florida, a steadily improving jobs outlook and growing economy.”

As well, in other news, a different report by Interest.com found that the South Florida market is one of the “least affordable in the nation.” The study investigated the 25 largest metro markets and South Florida came in very close to the bottom, at 21. It was found that a South Florida home had a $270,000 median price. That, taken with high insurance and property taxes, made the prospect of purchasing a home very challenging for many working families.

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florida-housingThe South Florida housing market is not plain sailing but it has definitely encountered some major improvements in recent months. Indeed, according to a recent Freddie Mac report, the area has been described as “one of the most-improved metro areas in the nation.” As well, the Multi-Indicator Market Index from August showed that the region had an increase of 11.43 percent from last year, putting their score at 69.2 percent today.

In addition, there has been a significant reduction in the amount of underwater mortgages, especially in Palm Beach and Broward. This could be due to the double digit price increase over the last year which has also helped the market come back from the housing crisis. As well, both these counties encountered increases in mortgaged homes with 50 percent equity or more. Prices are leveling off now, so the trend may not continue at such an increased rate.

Still, even with this data, it seems that there is an issue of housing in the region. According to Sweat Records owner, Lauren ‘Lolo’ Reskin, “what is going to continue to be one of the biggest factors is South Florida’s shortage of affordable housing.” This was written in an article on the talent and skills of many of those living in the region.

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affordable-florida-rentalsGiven that homelessness figures are currently high in Florida, the work of the Florida Community Loan Fund (FCLF) is even more crucial. This has changed a lot since a year ago as today there is 58.7 percent more homeless in the region.

What the Fund is doing, is providing around 900 apartment units for low-income residents. Currently the fund has a Multifamily Preservation Program. This will be expanded in what it does into keeping rentals affordable for the future. As CEO of FCLF, Ignacio Esteban explained:

“There’s a significant number of low-income Floridians who are significantly cost hampered when it comes to finding affordable places to live. Part of what we are trying to do is make sure the existing stock available in Florida remains.”

The homeless figures are not surprising given the results from a 2013 Rental Market Study. Conducted by the University’s Shimberg Center for Housing Studies, this found that low-income renters in the region are paying over 40 percent of their total household income on housing. With such a fund, many of these may be able to find affordable housing now.

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florida-mobile-homeOne way to avoid foreclosure because of hefty mortgages could be to go mobile. Another could be to develop a closer-knit community. Whatever is the reason, Florida housing seems to be moving increasingly towards mobile homes, especially over the last two-and-a-half years.

The majority of those people moving into mobile homes so far in Florida are in the 55+ range. But that seems to be changing.   But now it seems young families are being added to the mix. According to Karen Rearden who works for Four Star Homes, they are selling between 100 and 120 mobile homes each month in the Florida area.

It’s definitely a way to get on the property ladder. A two-bed, two-bath home in Volusia County goes for around $37,000. That’s definitely a more manageable way to buy a first home. And is a great option for retirees or others who are looking for a home of their own, without risking foreclosure as they can’t afford the mortgage.

And they sell quick. Indeed, a lot of them are sold online, with buyers not even “seeing” them except virtually. If Florida housing is moving in this direction, it could well become a trend setter for other parts of the country drowning in the housing rut. According to the US Census Bureau, there are currently 8.6 million mobile homes countrywide.

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seniors-floridaEarlier this month, the Kalyvas Group announced the opening of two newly-constructed assisted living and memory care facilities in the Tampa Bay region. One is in Largo (Seasons Largo) and the other in Belleair (Seasons Belleair). The Autumn Senior Living will be responsible for the daily workings of the two housing facilities and the Seasons Northdale community due to open later this year.

These Florida housing facilities for seniors are designed in consultation with the USF Health Byrd Alzheimer’s Institute. The region is popular with seniors for renting, enabling retirees to maintain a good quality of life without having to deal with the potential pitfalls that come with purchasing, especially given the housing market crash.

Florida state housing for seniors is popular in various parts of the region. First, Charlotte County comprises 32.9 percent of baby boomers, the highest in the region. Countrywide, Manatee County has the 14th highest rate of baby boomer rentals. Palm Bay’s metro population is 543,376; 20.2 percent of which is comprised of over 65-ers. In a recent article by Kirsten Klahn, reporter and contributor to the ‘Milwaukee Daily,’ Palm Bay was ranked Number 2 on a list of 8 US Cities With the Most Retirees. Jacksonville increased its number of seniors by over 400,000 in the last four years. Last year’s figures for the entire state put the number 65+ers living in Florida at around 3.6 million.

So Florida state housing for retirees is definitely popular – a trend which is showing no evidence of being reversed. Given that the state offers a great climate, no income/inheritance/estate tax, lower cost of living, lots of free entertainment (with the Atlantic Ocean, Gulf of Mexico and tons of lakes and canals), active adult communities boasting great activities, easy, accessible, air travel, museums, operas, good hospitals, and more this should not be such a surprise. In particular, Florida’s First Coast features a high density of hospitals and health care professionals which is definitely an attractive feature for seniors.

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Summer Vacation BeachThere has been an optimistic turnaround in Florida’s housing market recently. This is especially true of the Palm Beach County region. In the first quarter of 2014, the number of house sales valuing $1m+ there increased by 16 percent as compared to the same period in 2013. In addition, 2014 was the second consecutive year in which Palm Beach’s wealthy residents purchased more high-end homes than they did in 2013. For example, during the first quarter of 2013, there was an increase of 69 percent more homes sold for $1m+ range in Palm Beach County as compared to the same time period of 2012 and 2011.

Economic analyst Hank Fishkind of Fishkind & Associates says that while there is indeed improvement in the Florida housing market, it’s not like it used to be – when there were mega escalations in home prices. Nonetheless, there is evidence of “steady increases,” which are ultimately said to be better for Florida’s long-term economic prospects. Today, Fishkind actually believes that the Florida housing market is beginning to find a sense of “equilibrium.”

A similar opinion to Fishkind’s on the Florida housing market is offered by another expert in the field. President and CEO of WCI Communities (the Bonita Springs-based lifestyle community developer and luxury homebuilder), Keith Bass, used the adjective “robust” to describe it.

Even though there has not been much evidence of a recovery in US real estate in general, Southwest Florida seems to be somewhat of an exception to this rule. Executive VP and CIO at BMO Private Bank, Jack Ablin believes that this is because of the large amount of “foreign buyers and all-cash deals” that are taking place in the region. As well, the Florida housing market remains “relatively inexpensive” in comparison to housing nationwide, especially vacation locations.

So in general, while it might not be an extreme recovery the Florida housing market is encountering, there is definitely cause for optimism for those in the industry.

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florida housingA couple of weeks ago, Florida state housing officials re-launched a fund for those who are perceived as struggling the most with their mortgages. Today, representatives from the Florida Housing Finance Corporation are accepting online applications for Florida’s Hardest-Hit Fund Principal Reduction program. The program aims to assist homeowners who have kept up with mortgage payments, and did not apply in 2013 for HHF-PR assistance. Therefore, those who previously applied but were not accepted, now have a new opportunity.

The Florida HHF-PR program aims to offer up to $50,000 to those homeowners who owe at least 125 percent more on their home than its current market value. In other words, for those who have a home known as being “underwater.”

While this is good – and most welcome – news for Florida state housing and its homeowners, the move has not come without criticism. This is due to the fact that over 6,000 Floridians who have kept up with their payments are not being considered eligible for such a program that is dipping into the same federal money source.

One real estate consultant in the region, Jack McCabe, said it was “dead wrong” to help to help people who have reneged on their payments and that it should be those who have kept up on payments that are getting preference for any “mortgage reduction program” available.

Four years ago, in conjunction with the American Recovery and Reinvestment Act, the federal government put $7.6 billion into the Hardest Hit Fund for states poorly affected by the housing crisis. Florida received more than $1 billion from the fund.