SW FLORIDA'S RENTAL MARKET MELTDOWN
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- Опубліковано 7 тра 2024
- Mulit-Family Vacancies are skyrocketing across Southwest Florida as asking rents continue to decline. Areas from Sarasota to Naples are seeing alarming price drops as vacant units pile up, leading many to wonder if the rental market is about to crash?
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ERES LINK: www.erescompanies.com/market-...
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Ben Grieco
Broker Associate
Call/Text: 845-674-5290
Email: BenFloridaAgent@gmail.com
SL# 3330499
Coldwell Banker Sunstar Realty
2825 Tamiami Trail, Punta Gorda, FL 33950
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Everything is so expensive and hyperinflated.
The problem in Naples as someone who has lived here for 20 years is we were not a rental market town prior to the pandemic. Then the developers decided to build these massive apartment complexes in all shapes and sizes from 55+ to town homes etc. In my area east Naples on Collier Blvd stretching about 7 miles to Marco Island there are not one but 4 complexes in various stages of development most will be complete within the next 6 months. The problem is that the person who would be renting not able to afford to buy in Naples cannot afford the ridiculous prices they want because it's in "Naples". You still see the traffic coming and going from Naples during rush hour of the people who work for $20 a hour + driving to Lee and Charlotte counties to live. I have 11 employees and 9 live 1 hour plus of Naples. Its insane.
You are absolutely right and they have come very close to pricing those workers out of Charlotte and Lee as well.
In Volusia County, overbuilding mega apartment complexes & no sign of stopping. And, rent is stupidly high. I lived in Vegas during the boom & crash, and the overbuilding created a huge surplus in vacant rentals & landlords just walked away. I see the same thing happening here.
glad to hear that I am considering V County for retirement in a year or two. Plan on 3-5 years renting!
working now for a landlord in a rural area and guess what ? lots of vacancies people finding good deals for rent just look around 😅😅😅😅 and myself busy fixing the mess left behind 😅😅😅😅😅
Thanks for sharing!
Pray tell where is this rural area you tease us with?
southern illinois
Took us 3 months to get ours back rented, reduced rent by $200, it's so expensive to run now, increased property insurance, taxes, cost of maintenance, just dropped $8k on new AC. Luckily we have no mortgage on it, i can't imagine paying a mortgage on it, it wouldn't be doable. There's going to be more homes for sale when people realize the cost of owning a rental.
I agree. Seeing a lot of leveraged former rentals go up for sale here. Thank you for your input.
Rentals typically have tons of deferred maintenance issues as well as issues that have never been addressed. I haven't seen to many where the owners cared for the rental property as a quality item, it was just a means to an end and was treated as such. It's always the cheapest repair installed/ worked on by the cheapest guy down the road etc. The Big business ones (think invitation homes etc) they keep them for xxx years and then sell them off before they have to actually pay for big ticket repair items. (roofs etc) So you are in essence buying a house that will need everything addressed shortly after purchase...
For me I would never buy a rental to live in.
@1969bones69 agree, we have owned since 2011, roof and plumbing will be next, windows too. Probably time to sell.
@@taffyalusa4642 I wish there were more landlords like you, mom-n-pop just one or two properties, making realistic practical decisions like that and supplying a basic housing need. My area has 14% vacancy rate, and LL is out-of-state corporate, bought at peak in spring 2022, and is now trying to raise my rent 15%. I have already begun looking at other places. I am non-smoker and always pay rent on time (been here 6 years), so they will be out a tenant unless they come down. They sent out a computer renewal form, and we have 70 days to work out a better number. Not answering phone calls I think communication breakdown is a bad sign, shows to them I am not human and just a number they are "rolling the dice" with my housing, betting enough people will accept that.
large apt complex maybe 200 or so units.
I looked at the apartment rental market in Miami and there are a lot vacancies in high rise buildings and older apartment buildings which were converted to private properties. Prices are coming down slowly. A sunami is coming!
I see the same here in Hollywood Florida @joserivera7349
OMG thank you so much for validating my opinion here in Fort Myers. I am a full-time renter, due to student loans not bad credit nor for rental history... I am the perfect tenant and I have a son I'm a single mom and I need to stay in the area so he can have a relationship with his father. We are both business owners and Lee County his father is remarried and lives in North Fort Myers. A high schooler does not want to change high schools and I understand that. But with the spiking rents and lack of increase in my income it nearly has broke me. My lease is up at the end of May which is typically a wonderful time if you have to move but as an annual tenant. But I've been in this home for 3 years and wish the new owners didn't raise the rent by $400 a month! So now I have to find a place to rent and you would think as you are saying that the rent should come down, there are so many available places but they're just not coming down it's not enough to help me be able to get a decent home or duplex. how ridiculous is the greed....
We got into a Naples rental in March. Landlord came down a lot off ask. About 50% of them ignored our low ball offers but about 50% were open to negotiate. So keep at it, they will come down
@redirectyourself As a landlord I can tell you that it's not greed, it's cost. Inflation has hit everything. Taxes are up, Insurance is up, and maintenance costs are up. Those costs have to be passed on to renters. My rents have gone up quite a bit over the past couple of years, but my net profit dollars are up much less than inflation, which means from a buying power perspective my income has taken a step back.
So be careful when you throw around the "greed" accusation just because YOU want something at a lower price.
I was a mortgage broker for ten years until 2008 fall. And I owned a rental as well for many years. I did not raise my tenants rent every time the HOA went up. And if the folks who bought in October this duplex with 2 tenants paying $2k weren't already making a profit before they hiked rent by $400 then they made a poor purchase. Many folks did so back when the bubble was going strong from 04-08 and those who bought late or refinanced late simply made a poor investment. That is why Real Estate was traditionally a long term investment. The HUGE profit that landlords want is part of the problem. All businesses have cost increase and it doesn't ALWAYS have to be passed on the the end user/customer. So I will just have to disagree on this one....I do appreciate the info you present regardless
@@redirectyourself Successful businesses ALWAYS pass costs on to the customer when the market will bear it. If the market won't bear the increases then they eat the cost until the market recovers and then make it up at that time. It's business, not charity.
@@richardjohnson8114when the market crashes we'll see how the words "it's just business" feels to you.
Prices are also coming down in Brevard County and so is new constructions of multi family units. However, prices will up >50% since COVID
I have a family member who had retired to Florida. They have sold out and come back. They are now considering Texas. Insurance rates and the condo crisis forced them out.
Politics are also an issue for some people. They don't want to deal with the ridiculous stuff that is going on politically.
Thanks for the video Ben, I am seeing the same down in Broward county Florida.
Just north of Denver here, Rental markets are flat to slightly down YOY, I have 2 properties we rent out and can't really raise the rent this year. The small Landlords are getting run out of the market by all the regulations around here, Taxes, insurance, rental licences, inspections, restrictions on kicking people out, have to take pets and have charges state set maximums, have to take tenants with state rental subsidies (section 8) plus many many more, and NO more rent. I'm starting to bail out of the state.
and soon enough you'll be forced to take in the "newcomers". Sell while you can to those who will use house as primary residence.
Congratulations on 9K subscribers. I subscribed to your channel because you boldly predicted this, and you presented solid support for your opinion. Keep up the good work, you have always come through with well researched analysis.
Thanks David! Always a pleasure to have you along for the ride!
No one in their right mind is going to buy a condo in Florida. Especially with the new assessments on buildings three stories and higher.
Excellent video Ben, you had your finger on the Pulse of the rental Market. Made the prediction with a bullseye. Obviously you know your Market where your colleagues may not. Congratulations
You're easily one of my favorite people to see post a new video. Great stuff as always Ben. 💯
Thank you!
Go Ben the brave Real Estate Pro! You will get flack from some who are afraid to speak true numbers. But you'll get way more business from smart homesellers and buyers who want true numbers to make the right decisions with 👍
so many narratives these days, and so many get paid to lie!!!
Charlotte county here. Have an $800 dollar budget for rent. Paying $2400. Do you really think rent going down $50 bucks is gonna change a thing?
Price is the last thing to move. The momentum is down. anyone renewing should be asking for a reduction. By next year these rents will be back to where they were in 2019-2020
agreed John, price is the last thing to move! We sure saw that in FL taking 5 yrs 2007 to the bottom in 2012. First is volume IMO. Somewhere along the line vacancies rise and owners stop seeing speculative profits and the fear of empty unit takes over....
Everything depends on the area and the quality of the rental dumps are going to get less if you have a nice property in a nice area you’re going to get a premium you can’t make blanket statements like you’re doing
Ty
Really good report Ben
What sucks for landlords in addition to the vacancy problems are the drastic raises in taxes and insurance. Many will be forced to raise rent just to cover costs in a declining market. Do you think this will cause more sales?
I guess it depends on the severity of negative cash flow. Investors who bought cash will hold out much longer than anyone leveraged
i have one house in orlando , been in market for 2 months. Stupid people comeover and look and vanish. I reduced to the point i bought , still no ......My previous realtor cheated. I bought thinking of making money. Now i am loosing. it. and zip code is also in shady area. I
Real estate is dead without zero % fed funds rate.
Most recent investors don't realize that they will have a NEGATIVE cap rate for next 5-10 years.
People are not buying because they don't QUALIFY at these prices/rates.... And now it is cheaper to rent than to buy. The number of new construction is insane.As a result Inventory is just exploding.
Meanwhile Landlords keeping them empty are loosing their property to Squatters 😂
By the way you can just buy T-BILL and chill by getting 5% risk free.
If the vanish, Perhaps you need to reconsider your price and product.
@@Vin-pd7mh yes and leverage of RE works big-time in reverse, more quickly than what the Johnny come Latelies expected!
when is good month (time) to rent in Naples Fl off season or peak a lot building Naples do you think prices will drop ? to levels of the other areas ?
Those holding costs are a great motivator
Home values are declining rapidly in Florida. Especially condos.
I see properties listed on Florida
The property was last sold in 2020 and people they can sell now for twice last sold price. Crazy
Try triple or quadruple like here in Delray Beach. Crazy out there. It’s all flippers and investors. Eventually the end user has to pay the higher than ever before price or the ball comes back. In many cases it’s just speculators playing hot potato. 🥔
Another great video!
Glad you enjoyed it!
you do good work.
Thank you!
I need to rent 😊very very soon I'm in Miami. 🔥 Hot Tub please
I just got my rental rented last week. Small mid century 3/2. On market under 2 weeks.
What asking price? Location?
@@bensellin 33983. At peak a year or so ago probably could have got $1800. We got $1700. Interim rental for retirees building a primary.
@@JustinPanariello Nice! That does sound like a great price when people around here want $1,600 for a 2/2 condo.
@@bensellin it works out. Entry house for us. Cash flows as a rental. That was the plan the whole time and with prices dropping we pulled the trigger on moving up in house. 16% discount off original asking. Risky with all the uncertainty in housing but we don’t plan on moving again for a long time cause of school age kid.
yeeee
Come on Ben, you know you can’t tell the real estate bros property doesn’t go up in a straight line. They don’t do maths they do FOMO.
The landlords are obviously in a squeeze between the falling prices and the high price of insurance and upkeep. Being a landlord is not as rosy as other people might think.
Hard to feel sorry for landlords who price gouged over the past several years.
You haven't seen anything yet---Just imagine if Biden / Harris are re elected.
If i lived in Russia i would never be without food utilities or home 😂😂. 🤔
1990s many elderly starved to death in Russia.
HOME PRICES ONLY GO UP!
Wrong
while the value of the currency continues down, yes. Seen the price of gold lately?
I would never live in Florida. Too many crazy people.
I can only hope more people will feel as you do, we have way too many people down here already. Keep up the good work, please continue to preach your sermon, of how crazy people are down here, we could really use your help.😊
Thank you. I have been to your state. Many times. It used to be a fun place, but now it's run by loons. I'll stay up here in my beautiful blue state, where I am surrounded by many beautiful beaches, and enjoy my retirement. New England is so much better that Floriduh. Keep loving those hurricanes and rising water. Soon you'll all be swimming to the market to get your groceries!!! Enjoy!
@@airmanma I too have lived in New England for 19 years, but I am not a native. While there are many geographically beautiful areas, the tax burden is ridiculous and the gray deadness of winter matches the blue state you are so proud of. This isn't about red vs blue and it never was. Over the past 40 years America has morphed into a country run by American Oligarchs and they come in all colors.
If you like snow, ice, dormant vegetation and rocky beaches that's great for you.
I personally prefer fine powdery sand, warm waters, copious amounts of sunshine, tropical flora and fauna and not being taxed to death.
Electrical storms, heavy rains and the howling winds of hurricanes are the lullabies I grew up with and still love to fall asleep to..
Thank you for staying where you feel you belong, spread the word, we could use several million less people here..😂😂😂
P.S. Al Gore claimed back in 1990's Miami would be underwater by 2025, yet that hasn't happened. It will be quite a while before Florida drowns, or, if it ever does. Venice, Italy is still managing to stay a float despite the excess water, I would love to commute by boat, or Gondola to get my groceries, sounds perfect!
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. Samantha Jack, my portolio is doing really great and im proud of the decisions i made last year.