Accelerated Activity and Appreciation in the Housing Market Since May, Palm Beach County and South Florida have experienced unprecedented sales activity and appreciation in the existing single-family home market. According to the November 2020 Florida Association of Realtors (FAR) Market Report, the median (midpoint) sales price for a single-family home in Palm Beach County was $418,000, up 19.4 percent year-over-year. The average (mean) sale price in November was $753,028, up 53.8 percent year-over-year. Townhomes and condos also had dramatic year-overyear price increases. The median sale price in November 2020 for a townhome/condo in Palm Beach County was $220,000, up 16.9 percent and an average sale price of $328,068 up 16.6 percent year-over-year. According to real estate analysts, the recent buying surge is mainly COVID-related. Buyers with the financial wherewithal from the Northeast and Upper Midwest grown weary of the living restrictions placed on them by the pandemic have been looking south. Other contributing factors include pent-up demand, low interest rates, and taxes. Florida’s appeal rose precipitously following the Tax Cuts and Jobs Act of 2017 which limited to $10,000 the amount of total state and local taxes that can be deducted on a federal income tax return. Housing and Transportation Costs The Affordable Housing Needs Assessment further examined the critical link between affordable housing, transportation, and economic development. According to the Housing and Transportation (H+T) Affordability Index created by the Center for Neighborhood Technology, Palm Beach County’s median monthly housing costs, as a percentage of household monthly income, is 40 percent. However, when transportation costs are combined with housing costs, the percentage of household income soars to an average of 66 percent, far above the 45 percent H+T Affordability Index threshold. According to the H+T Affordability Index, most communities in Palm Beach County are far above the 45 percent H+T Affordability Index threshold. Municipalities with the highest H&T Indices include Wellington (80 percent), Boca Raton (78 percent), Palm Beach Gardens (73 percent) and Jupiter (72 percent).
Key Data Points: The following are the key data findings of the 2020 Palm Beach County Affordable Housing Needs Assessment: Housing Supply Conditions
According to 2018 ACS estimates, Palm Beach County has a current inventory of 682,671 housing units, which represents a 2.1% (14,207 units) increase in total housing units since 2014;
Palm Beach County’s housing inventory consists of 402,461 single-family and 280,210 multi-family units;
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