A F F O R D A B L E H O U S I N G ISSUES SHIMBERG CENTER FOR AFFORDABLE HOUSING M.E. Rinker, Sr., School of Building Construction College of Design, Construction & Planning PO Box 115703, University of Florida, Gainesville, FL 32611-5703 TEL: (352) 273-1192 SUNCOM: 622-7697 FAX: (352) 392-4364 Volume XIX, Number 3 April 2008 State of Florida s Housing, 2007 Executive Summary
The state of Florida had 4.38 million single-family units in 2006 with an assessed value of $789.8 billion. Almost 75 percent of single-family units were occupied by their owner. Fifty-seven percent of the single-family units were located in Florida s four major metropolitan areas (MSAs) which are made up of sixteen counties. Twenty-nine percent of the major MSA total, comprising nearly 17 percent of the state, is found in the Tampa-St. Petersburg- Clearwater MSA (which we will refer to as Tampa Bay). The Orlando-Kissimmee MSA has almost 20.9 percent of the major MSA total, representing 11.8 percent of the state s single-family stock; the Jacksonville MSA has 8 percent of the state total; and the Miami-Fort Lauderdale-Pompano Beach MSA represents 20.3 percent of the state total. The 16 other MSAs contain 37.3 percent of the state s singlefamily housing stock, while the 28 non-metropolitan counties contain only 6 percent. Table 1 shows the distribution of single-family housing across Florida. The state of Florida had 1.6 million condominium units in 2006 with an assessed value of $314.9 billion. Only 43.4 percent of the condominium units were occupied by their owner. Almost 73 percent of the condominium units were located in Florida s four major MSAs. A total of 918,450 units, or 56.45 percent of condominium units in the state, are located in the Miami-Fort Lauderdale-Pompano Beach MSA. The 16 other MSAs contain 25.5 percent of 2
the state s condominium stock, while the 28 nonmetropolitan counties contain only 1.6 percent. Table 2 shows the distribution of condominiums across Florida. Table 3 contains summary information on the state s stock of multifamily properties containing fewer than 10 units. There are about 157,000 multifamily properties that contain fewer than 10 units in the state of Florida. Approximately 69 percent of these are found in the four major metropolitan areas, with another almost 30 percent located in other metropolitan areas. Only 3.6 percent of these small multifamily complexes are found in non-msa counties. The Miami-Fort Lauderdale-Pompano Beach MSA contains 39.24 percent of all these units. Only nine of the non-msa counties have more than 100 such complexes, with Monroe County having over 47 percent of the non-msa total. Table 4 contains information on multifamily complexes with 10 or more units. With a total of 13,516 complexes in this category in the state, there are about 9 percent as many of these larger complexes as there are with less than 10 units per complex, but these complexes undoubtedly comprise more total units than the smaller complexes. The four major MSAs contain 69.4 percent of these units, with 44.3 percent located in the Maimi-Fort Lauderdale-Pompano Beach MSA. The other MSAs contain almost 27 percent of the state total. The Gainesville MSA and Tallahassee MSA contain 3.5 3
percent and 3.1 percent of all these units, numbers that reflect the concentration of college students in those communities. Non-MSA counties contain only 3.9 percent of the state s stock of larger apartment complexes. Affordability remains an issue in the state of Florida. As seen in Table 5, using the housing affordability index approach, fifty-nine of the sixtyseven counties have an index value below one. This value implies that a household making the median income cannot afford the median priced singlefamily home without spending more than 25 percent of its income on housing. If we examine housing using a more complex methodology that takes into account household debt, taxes, and insurance, the affordability issue can be examined as the percentage of sales affordable in each county. If a household has the 2006 HUD median family income, there are only 15 counties where over 50 percent of the single-family housing market is affordable. In fact in Monroe County, only 0.48 percent of the singlefamily housing market would be affordable to the HUD-defined median income household. In Broward County, Collier County, and Miami-Dade County less than 5% of the single-family housing market would be affordable. The housing market was noticeably different in 2006 than it was in previous years. Both the number of single-family sales and condominium sales were down across the state. There was a 24.46 percent 4
decline in the number of single-family home sales between 2005 and 2006. In fact, only Baker County, Gadsden County, and Jackson County had a higher number of single-family sales in 2006 than in 2005. Three counties, Franklin County, Glades County, and Walton County saw decreases of greater than 50 percent in the number of single-family sales, and another four counties, Flagler County, Gulf County, Hernando County, and Homes County, saw decreases of greater than 40 percent. While the number of single-family sales decreased between 2005 and 2006, the statewide real median single-family sales price increased. However, as shown in Table 6, this increase was at a slower rate than in recent years. While the statewide real median single-family sales price increased, there were 11 counties that experienced real median single-family sales price declines between 2005 and 2006, while in Bay County there was no change. Dixie County, Gulf County, and Walton County all experienced real median sales price decreases of 20 percent or more, and Wakulla County saw a decline of 12 percent. The remaining seven counties, Charlotte County, Escambia County, Franklin County, Monroe County, Palm Beach County, Santa Rosa County, and Washington County, experienced real single-family price decreases of less than 10 percent. 5
The condominium market behaved in a fashion similar to the single-family market in 2006. The number of condominium sales was down 22 percent between 2005 and 2006 compared to a 22.65 percent increase between 2004 and 2005. If we limit the analysis to those counties that had 20 or more condominium sales in both 2005 and 2006, only 12 out of 45 counties had a higher number of condominium sales in 2006 than they did in 2005. Monroe County and Sarasota County saw the number of condominium sales decrease by over 50 percent, and Collier County and Lee County experienced a decrease in the number of condominium sales of 25 percent and 26 percent, respectively. The entire Miami-Fort Lauderdale-Pompano Beach MSA also saw a 26 percent decline in the number of condominium sales. The statewide real median condominium sales price did increase in 2006, but this increase was at a much slower rate than previous years. As Table 6 shows 10 of the 45 counties that had at least 20 sales in both 2005 and 2006 saw a real median condominium sales price decrease between 2005 and 2006, and Wakulla County experienced no change. Walton 6
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County, Nassau County, and Levy County all saw real median condominium sales price decreases of 20 percent or more, while Bay County experienced a decrease of almost 19 percent. Of the 34 counties that experienced an increase in real median condominium sales price, only Flagler County, Hernando County, Okeechobee County, Glades County, and Sumter County saw their real median sales prices increase between 2005 and 2006 at a rate greater than the change between 2004 and 2005, thus implying that the other 29 counties were experiencing some slowing in their condominium markets. There were 203,238 new units with a value of $35.7 billion built in the state of Florida during 2006. There were 146,236 single-family units built with a value of $27.9 billion and 57,002 multi-family units built worth $7.8 billion. The construction of these units has a large economic impact on the state, and the report measures the direct, indirect, and induced impact on output, earnings, and employment. As shown in Table 7, the estimated economic impact from new residential construction is approximately $59.1 billion annually. Furthermore, new residential construction provides nearly 587,000 jobs with annual earnings of nearly $22.2 billion. Affordable Housing ISSUES is prepared bi-monthly by the Shimberg Center for Affordable Housing for the purpose of discussing contemporary issues facing affordable housing providers. Reproduction of this newsletter is both permitted and encouraged. Comments or questions regarding the content are welcome and should be addressed to Robert C. Stroh, Director. Shimberg Center for Affordable Housing School of Building Construction College of Design, Construction & Planning 203 Rinker Hall Gainesville, FL 32611 8