Real Estate Trends in Fort Lauderdale: The Venice of America
June 11, 2019Fort Lauderdale: More Bang for the Buck
Aside from a 1980s fame as a spring vacation hotspot, Fort Lauderdale has quietly slid beneath its Miami neighbor’s acclaim. Separated by roughly 25 miles, there is little difference in the beauty of the Atlantic sunrise, the breeze flowing from the East, or a sunset at dusk. In fact, Fort Lauderdale not only rivals its neighbor to the South when it comes to quality of life, there is more “bang for the buck.” Fort Lauderdale, ranked as the #6 real estate market in America, is a great place to live and a wonderful investment destination.
Fort Lauderdale, also regarded as the Venice of America, is caressed with water and embraced with a tropical climate. Though it has a population less than 200,000, it has the amenities of any major seaside city in America. It is truly a gem waiting for you. And, recent trends in home buying, selling, and construction confirm such accolades. As a former relocation expert with a professional nationwide network, the Marder Group is proud to call Venice of America home.
Historical Trends in the Fort Lauderdale Real Estate Market
Over the past 20 years, there has been tremendous positive sentiment towards the Fort Lauderdale real estate market. The transformation from being a movie set for Elvis Presley and a bastion for spring breakers, this water bound oasis has grown in terms of population, prestige, and value. This sentiment has been measured by positive reviews of multi-family and single-family affordability as well as a strong local economy, stronger investor demand, educational competitiveness, and capital availability.
Paris (2018) from Forbes wrote that, “Historically, Fort Lauderdale had always been a secondary market to Miami. Then, when prices in Miami kept rising, developers started looking for cheaper dirt and came here.” As a matter of fact, in 1990, the price per square foot price difference between Miami Beach and Fort Lauderdale was 25; by 2016, this difference was 261% related to the volume of inventory https://www.forbes.com/sites/ellenparis/2018/04/28/fort-lauderdale-is-booming-heres-why/#3116a3a8743b. Essentially, property buyers can get some of the most breathtaking views in the world, and amenities, and services and a deep discount.” Thus, since 1979, the development and expansion of condominiums has quietly grown such that those looking for a different lifestyle than living in Miami – without a loss in the quality of life – the Venice of America offers a sound place to live and invest.
As a matter of fact, between 2000 and 2018, the rate of property appreciation has increased 121.89% https://www.fortunebuilders.com/fort-lauderdale-real-estate-market-trends/. As with anywhere else, the market crash of 2008 and subsequent nadir in 2012, presented a magnificent buying opportunity in Fort Lauderdale. As shown in table 1. however, the average price of condominiums in Fort Lauderdale Beach rose in value consistently from 1998 through 2018 while Miami was consistent between 1998 and 2008 with an explosion in pricing from 2008 through 2018. Subsequently, price differentials grew tremendously which made for a remarkable opportunity for savvy investors.
Table 1. Average Condo Pricing in Miami Beach and Fort Lauderdale Beach 1998-2018 (in dollars)
Miami Beach Ft. Lauderdale Beach Difference
1998 671,000 491,000 36%
2008 1,198,500 811,000 47%
2018 3,900,000 1,333,314 192%
Clearly, from 1998 through 2008, though the difference in condo value was slightly increasing between Miami and Fort Lauderdale between 1998 and 2008, its acceleration exploded by 2018 with condo prices sitting at 192% more in Miami than Fort Lauderdale. Though the overall prices experienced steady increases in Fort Lauderdale (1998-2008, 65%; 2008-2018, 64.4%), Miami Beach pricing exploded (1998-2008, 78.6%; 2008-2018, 225%). The growth of Miami’s pricing, its oversupply of luxury condos plus a strong dollar that has pushed Latin American investments downward, has created a fertile marketplace in Fort Lauderdale Beach.
As a matter of fact, with the construction of the Four Seasons Private Residences, the Auberge Beach Residences, and W Residences, it is projected that the gap between Miami and Fort Lauderdale will shrink back to a 36% difference as it was in 1998.
However, while luxury opportunities are growing in Fort Lauderdale, the overall market has become one that caters to all lifestyles and price points. Due to the ongoing high employment rate and growing economic vitality, Fort Lauderdale has a strong market for residences under $350,000 while growing a vibrant upper end luxury market. Venice of America, therefore, has something for everyone.
Fort Lauderdale as a Balanced Market
As of 2018, the median home value is $330,741 with the majority resting in the $139,000-$278,000 range https://miami.curbed.com/2017/10/26/16552432/fort-lauderdale-miami-real-estate-markets. This median and modal distribution has promoted a balanced real estate market in Fort Lauderdale. Even though there has been growth in luxury condominium offerings, the market value rests, in the aggregate, at 14% above the pre-crash 2007 level https://www.sun-sentinel.com/business/fl-bz-fau-survey-shows-south-florida-home-prices-above-historic-medians-20180816-story.html.
This suggests that even with growth in beach front condominiums, fine-dining and shopping, Fort Lauderdale has grown into its market rather than heating up to a level that could collapse. Those looking at stable and profitable investments or purchasing a home that is reasonable in pricing have come to the right place. As a matter of fact, there is a healthy balance between buyers and sellers with a slight edge, a discount, going to buyers. Table 2 shows that the listing and sale price has increased in Fort Lauderdale from December, 2015 and October, 2018 with a discount ranting from .03% to 13.4%
Table 2. List Price, Sale Price, and Buyer Discount between December 2015 and October 2018 (in thousands)
Price December 2015 June 2016 D 2016 J 2017 D 2017 J 2018 O 2018
List 230 260 265 285 280 309 300
Sale 215 225 234 268 253 310 268
Discount 6.5% 13.4 12.2 5.9 9.8 -.03 10.6
Overall, there has been a steady increase in both list price and sales price. However, there was a sharp decrease in sale price from June, 2018 to October, 2018. This suggests that the overall inventory in the Fort Lauderdale market has grown giving buyers a slight current advantage in the negotiation process.
In addition, in the luxury real estate market end of the spectrum, softening price trends, slowing construction of luxury condominiums , and the spate of developers and sellers discounting high-end properties, has made for a buyer’s market. With a slowing of luxury construction to absorb oversupply, an aging Baby Boomer population seeking luxury living and nice weather, purchasing now and reselling later has a very profitable long-term prognosis. In a nutshell, there is an opportunity live an exceptional quality of life at an affordable price in the dominant market with a great upside in the luxury market.
Thus, those looking for a long-term investment can find it in Fort Lauderdale. Those looking for a great quality of life with a growing urban scene and majestic ocean landscapes can find it in Fort Lauderdale. Those looking for a 200% “bigger bang for the buck” per square inch, can find it in Fort Lauderdale. With an ongoing steady growth in value, amenities, and investment possibility, why not check out why Fort Lauderdale, the Venice of America, is ranked the #6 real estate market in America.
The Marder Group and Fort Lauderdale
It is with great excitement that the Marder Group awaits your call so you can enjoy learning more about Fort Lauderdale and becoming a part of a great place to live. As an expert in relocation services and an extensive team of real estate professionals, our white glove approach to finding you the perfect dream home is at your fingertips. Call us and find out how our white-glove and client-centered approach has helped us earn numerous awards in the real estate market.