The government has estimated that the nation is short about 4 million homes, and that number is likely growing.
A good examples of just how wild the housing market has become in Florida, look no further than the city of St. Augustine. A property has been on the market for thirty days with a disgustingly steep price considering the home’s exceptionally run-down (think ugly shabby) condition.
Asking price $349K on Zillow
This house is listed as a “Major fixer upper!!! Property to be sold AS-IS” on Zillow. It’s a 448-square-foot, one-bedroom, one-bath home that has definitely seen better days. The asking price is a whopping $349,000.
With housing in such short supply, Wall Street saw an opportunity, and began buying modest, single-family houses. Once bought, they rent them out. In places like Jacksonville, Atlanta, Charlotte, investors are buying almost 30% of the homes that are available for regular home buyers.
These Wall Street companies come in and buy a home, paying at or above market price for the home. And then, they set a market rent, charging 30%-40% higher rent than the previous owner asked.
References:
- https://www.news4jax.com/news/local/2022/03/24/want-to-buy-a-fixer-upper-in-st-augustine-this-1-bedroom-house-is-for-sale-for-349000/
- https://www.zillow.com/homedetails/112-Moore-St-Saint-Augustine-FL-32084/47777206_zpid/