Is buying real estate an excellent investment? Well, it all depends on where. Despite significantly high mortgage rates and living costs nationwide, Florida still has a sound economy with a reasonably priced, robust housing market. The jobs market is growing, and with no state income tax, the Sunshine State is a magnet for professionals seeking financial stability and an attractive place to live.
In early January, vacation rental marketplace FloridaRentals.com examined house prices on Zillow, a leading real estate marketplace, to create a ranking of the most and least expensive areas to purchase a property in Florida, and here’s what they found:
Monroe County tops the list as the least affordable area to buy a house, with a median house price of $954,012. Monroe is the southernmost county in Florida, comprising the Florida Keys and parts of the Everglades National Park, making the county rich in stunning, natural landscapes.
Collier County followed Monroe, with St. Johns and Walton trailing closely behind. Surprisingly, Miami-Dade came in 5th place and Palm Beach County in 6th, with the average median house price in Palm Beach County at $524,918. Manatee County came in 10th place as the most affordable county in Florida, with a median house price of $476,592.
Jonathan Duerr, Senior Sales Executive for One Sotheby’s International Realty and Alba Palm Beach, sees a low inventory of houses. Still, he thinks the market is picking back up in Palm Beach County.
“There’s a next wave that’s coming. Look at the 360 Rosemary building developed by Steven Ross and his Related Group. They’re putting so much money and effort into developing the city’s commercial buildings and attracting the upper northeast financial institutions to come here. Palm Beach County has exploded and will continue to do so for the next 3, 5, and 10 years,” he says.
Duerr has provided his real estate clients with white- glove service for the past twenty years in Palm Beach County and now spearheads the sales team at Alba Palm Beach, the newest direct waterfront luxury condominium in the Palm Beaches.
“Everything went wild after COVID-19. We saw a big wave in 21 and 22, and then in 23, things started to stabilize. We expect 2024 to be another good year and continue to grow in the next three to five years in Palm Beach County.”
“West Palm Beach has a mixed culture and classes of people — from company CEOs to secretaries — slowly integrating into Palm Beach County,” he continues. “The young finance guys are coming to Florida and moving into these high-level rentals, starting their families, and buying homes in El Cid, SOSO, Flamingo Park, or other neighborhoods nearby. There’s also another clientele, those with two or three kids. They’re looking more in the northern part of the county, like Jupiter or Palm Beach Gardens, and they’re commuting down to West Palm Beach or Palm Beach.”
Duerr believes that real estate in the Palm Beaches area is an excellent investment for various reasons. South Florida has sunny weather mostly all year. Whether considering the tax benefits or how the state is run, regardless of one’s political affiliation, “I think everybody agrees that it’s just a well-run state and Palm Beach County itself is just a well-run county,” he says.
Part of Palm Beach’s allure is its reputation as a super clean, super friendly county. What was once a vacation or second home destination is now a primary residence for families and singles from all walks of life.
“It’s phenomenal,” Duerr says about the county’s growth and evolution. Like Northwood Village’s transformation — from Broadway’s streetscape project to Curry Park’s 35-million-dollar renovation near Old Northwood, there’s always something new. “I love to see the change about to happen. Take Alba Palm Beach. It is part of the Northwood Villages district at 47th and Flagler, right on that north end.”
New
Alba Palm Beach will feature 55 luxury condos ranging from $2.8 million to over $12 million. As you travel north on Flagler, Duerr points to $20—and $30 million homes being developed. “Some of these are primary homes, and others are spec homes, but for the most part, people are moving into these homes,” he says.
Over the past two to three years, Northwood’s real estate market has seen a significant increase in property value, with some properties experiencing double or triple the appreciation rate while maintaining their historical integrity. Additionally, many of these homes are landmarked or historic.
“Northwood’s renovations are positive, showing the city’s effort to improve the area and make it safer for all residents,” says Duerr. “There’s the Nora Project, a high-end design district area for retail and commercial spaces, including hotels, great restaurants, and gyms. That’s going to be a destination where people can go and spend the day—go and work out, have lunch, go shopping, and enjoy some entertainment at night.”
Eyes on West Palm Beach
According to Duerr, Palm Beach County has been undervalued significantly. Residents were not prepared for prices to jump two and three times over the past two years.
“It probably should have been happening over
three to five years,” explains Duerr. “It all happened simultaneously, so it seemed very drastic to people. Look at West Palm Beach, which people call the Wall Street of the South, or a mini New York in terms of all these different boroughs popping up, like SOSO, which is south of Southern Boulevard and a great family- oriented neighborhood.”
SOSO is attracting more retail and restaurants and is very approachable when purchasing a family home. It is the same as Northwood, where you can still get an excellent single-family home at a decent price. And let’s face it: We are paying a higher price based on location, minutes from a beach, and living in a coastal city.
“There are still some great neighborhoods west of I-95, and I think that’s when you’re starting to see communities like Avenir and Westlake come to life. Although they’re about a 20—or 25-minute drive from downtown or the beach, you’ll get a bigger bang for your buck,” Duerr says. “We are privileged to live in one of the country’s best areas, counties, and states for many reasons. And I believe there’s still plenty of opportunities.”
For many Floridians, commuting is not a word we’re used to or like. For the Northeast and the Midwest, people coming here are used to commuting 45 minutes to over an hour to get to work sometimes. Living further out west or north isn’t a huge deal for them.
“I love seeing it when we come together, especially after being here for almost 20 years; I used to live
and work in Jupiter. I love going up there and going to the beach. But our county, from Delray to Jupiter, offers something for every lifestyle and family level. So, if you’re a boater, a golfer, or a family-oriented beach-goer, we will look at Palm Beach Gardens and Jupiter. Suppose you want more of a city life or urban lifestyle. In that case, we will look around the Delray Beach area with Atlantic Avenue, which reminds me of southern California, where there’s active biking and rollerblading.”
For Duerr, it’s fun to have clients come to his office wondering where they want to be. He knows Palm Beach County well, so he dials into their likes and dislikes and lifestyles for them and their family. He zeroes in on the neighborhood that suits their needs, ultimately finding the perfect property.
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