Planning Services Division
March 2005
Number 32
Rising Housing Costs
Between 1993 and 2002, the cost of housing in Broward County increased at twice the rate of household income. The average sales price of a new single family home in Broward County is $383,000.
Cost of Housing The cost of new single family homes and condominiums have increased significantly over the past decade, along with the prices of existing units. The average price of a new single family home in Broward County was $383,000 in 2003.
Average Sales Price in 2003 $383,000 $229,713 $251,898 $121,872
SINGLE FAMILY - Housing Units Sold and Average Price by Type
70,000 Units Sold 60,000 50,000 40,000 30,000 20,000 10,000 0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
$400,000 $300,000 $200,000 $100,000 Average $0 Price -$100,000 -$200,000 -$300,000
Housing Type New Single Family. Existing Single Fam. New Condo Existing Condo
All Units Sold $206,012 Source: AAREA Report, Integra Realty Resources – South Florida. Total Housing Sales
Sales by Unit Type New SF Existing SF Average Sale Price New SF Existing SF
New Condo Existing Condo New Condo Existing Condo
The volume of total sales has also increased. In 2003, 68,185 housing units were sold in Broward County, compared to only 43,235 in 1993. Most of the growth has been in the resale of existing single family homes which accounted for 61 percent of total sales in 2003.
Housing Sales by Type of Unit, 2003
New SF 6% Exist. Condo 31% New Condo 2% Existing SF 61%
CONDOMINIUM - Units Sold and Average Price by Type
70,000 Units Sold 60,000 50,000 40,000 30,000 20,000 10,000 0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
$400,000 $300,000 $200,000 $100,000 Average $0Price -$100,000 -$200,000 -$300,000
Source: AAREA Report, Integra Realty Resources – South Florida.
Source: AAREA Report, Integra Realty Resources – South Florida.
New Housing Cost Construction costs, land value and developers’ profit are the main components determining the price of new homes in the market. Although construction costs have increased steadily during the past decade, it is significantly increased land values that have fueled the increase in cost of new single family homes. Broward County is approaching build out. Land values have increased as the number of developable vacant sites has declined. Housing Costs Compared to Income Increases in median household income have not kept pace with escalating housing prices. In 1993, the average price of all homes and condominiums sold in Broward County was $105,210. By 2002, the average price had risen 73 percent to $181,591. During the same time period, median household income has only risen by 36 percent (income data for 2003 is not available). This means that, in nine years, housing costs in Broward increased at twice the rate of household income. The ratio of housing cost to income has increased throughout South Florida. In 1993, an existing single family home in Broward cost 3.3 times median household income; in 2002 it cost 4.6 times.
Ratio of Sales Price (Existing Single Family Units) Compared to Median Household Income, 1993 to 2002.
Florida 6.0
In 1993, SF home cost 3.3 times median household income.
Average Construction Cost and Sales Price of New Single Family Construction in Broward County
$400,000
ic Pr l es Sa e
$300,000
g Av
$200,000
$100,000
$0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Source: AAREA Report (sales) and US Bureau of Census (building permits)
Cost of Housing compared to Household Income
$250,000 $200,000 $150,000 $100,000 $50,000 $0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Avg. Cost of Housing (all unit types) Median Household Income
Source: AAREA Report (sales) and U.S. Bureau of Census (income)
Palm Beach
In 2002, SF home cost 4.6 times median household income.
Broward
Miami-Dade
5.0
4.0
3.0
2.0 1993 1994* 1995 1996* 1997 1998 1999 2000 2001 2002 2003
Sources for data used on graphic to left: U.S. Bureau of Census; Florida Association of Realtors; and University of Florida Real Estate Research Center.
Broward-by-the-Numbers is a publication from Dept. of Urban Planning and Redevelopment Planning Services Division 115 South Andrews Ave., Room 329K Fort Lauderdale, FL 33301 phone: (954) 357-6634 email: planstats@broward.org www.broward.org/urbanplanning.htm
Broward County Board of County Commissioners Josephus Eggelletion, Jr. Ben Graber Sue Gunzburger Kristin D. Jacobs Ilene Lieberman John E. Rodstrom, Jr. James A. Scott Diana Wasserman-Rubin Lois Wexler
TECHNICAL APPENDIX
TABLE 1 – Broward County Housing Sales and Average Sales Price, by Unit Type, 1988 to 2003.
Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Single Family Home New Construction Avg. Units Sales sold Price 8,325 7,791 6,725 5,268 5,738 7,488 9,791 8,436 9,423 8,538 7,795 9,271 8,096 7,655 6,432 4,264 $130,019 $143,955 $152,909 $154,125 $154,775 $156,129 $165,794 $174,698 $178,329 $179,234 $187,690 $201,345 $228,152 $271,542 $307,602 $383,000
Existing Single Family Home Avg. Units Sales sold Price 21,437 20,826 19,045 17,300 18,491 22,726 23,460 22,055 23,104 23,952 27,088 30,660 32,332 33,799 37,922 40,879 $100,035 $103,190 $104,453 $105,300 $108,067 $111,789 $114,113 $115,823 $122,597 $128,050 $134,733 $143,477 $157,450 $174,297 $201,425 $229,713
Condominium New Construction Avg. Units Sales sold Price 3,322 2,484 2,114 1,607 1,214 1,647 1,828 953 1,254 1,194 1,060 722 486 890 1,850 1,655 $73,819 $78,088 $78,964 $92,473 $79,934 $80,918 $85,177 $85,069 $94,313 $145,822 $240,044 $285,088 $252,455 $250,258 $205,645 $251,898
Existing Condominium Avg. Units Sales sold Price 10,986 10,684 10,220 9,996 10,161 11,374 12,410 12,029 12,931 13,408 14,304 16,325 18,080 18,932 20,787 21,387 $64,209 $64,609 $63,158 $60,984 $61,552 $62,062 $62,475 $62,892 $62,686 $64,382 $70,572 $71,433 $78,664 $86,726 $104,276 $121,872
All Housing Units Avg. Sales Price $94,792 $99,434 $100,515 $99,260 $101,360 $105,210 $110,160 $111,928 $116,495 $119,653 $126,905 $134,046 $143,790 $160,493 $181,591 $206,012
Source: AAREA Report, Integra Realty Resources – South Florida.
TABLE 2 – Distribution of Housing Sales in Broward County by Unit Type, 1988 to 2003
Single Family Homes Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 New Construction 18.9% 18.6% 17.6% 15.4% 16.1% 17.3% 20.6% 19.4% 20.2% 18.1% 15.5% 16.3% 13.7% 12.5% 9.6% 6.3% Existing Homes 48.6% 49.8% 50.0% 50.6% 51.9% 52.6% 49.4% 50.7% 49.5% 50.9% 53.9% 53.8% 54.8% 55.2% 56.6% 60.0%
Condominiums New Construction 7.5% 5.9% 5.5% 4.7% 3.4% 3.8% 3.8% 2.2% 2.7% 2.5% 2.1% 1.3% 0.8% 1.5% 2.8% 2.4% Existing Units 24.9% 25.6% 26.8% 29.3% 28.5% 26.3% 26.1% 27.7% 27.7% 28.5% 28.5% 28.7% 30.6% 30.9% 31.0% 31.4%
Source: AAREA Report, Integra Realty Resources – South Florida.
TABLE 3 - Average Cost of Construction New Single Family Units in Broward County, 1993 to 2003
Total Value of New Single Family Construction $1,064,665,000 $1,190,125,000 $922,060,000 $1,074,838,000 $893,264,000 $1,072,216,000 $1,107,984,000 $1,278,506,346 $1,159,533,694 $864,368,619 $678,996,763
Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Single Family Units Permitted 9,808 10,665 8,188 9,584 7,494 8,753 8,574 9,160 8,275 5,705 3,880
Average Cost per unit $108,551 $111,592 $112,611 $112,149 $119,197 $122,497 $129,226 $139,575 $140,125 $151,511 $174,999
Source: U.S. Bureau of Census, Source: New Privately-owned residential building permits.
TABLE 4 - Comparison of Average Sales Price of Existing Single Family Homes and Median Household Income, in Florida and the Tri-County Area 1993 to 2002.
Single Family, Existing Home Sales (1)
Year Florida Broward MiamiDade Palm Beach 1993 $87,100 $102,800 $98,300 $116,300 1994 $86,200 $103,300 $102,600 $117,400 1995 $87,700 $105,900 $107,100 $122,700 1996 $92,300 $112,300 $112,200 $127,900 1997 $95,800 $123,800 $117,800 $130,200 1998 $99,800 $129,800 $122,400 $127,300 1999 $108,400 $136,300 $134,700 $130,500 2000 $117,600 $148,500 $138,200 $138,600 2001 $126,600 $170,600 $159,600 $149,600 2002 $141,700 $197,400 $184,700 $194,600
Median Household Income (2)
1993 Florida Broward MiamiDade Palm Beach $28,230 $31,264 $26,677 $33,077 1994* $29,114 $32,580 $27,796 $34,455 1995 $29,998 $33,895 $28,915 $35,833 1996* $31,438 $35,864 $29,458 $36,439 1997 $32,877 $37,832 $30,000 $37,045 1998 $34,757 $40,589 $30,669 $39,199 1999 $36,309 $40,328 $32,287 $40,967 2000 $38,784 $42,690 $33,228 $42,008 2001 $37,319 $42,311 $32,194 $41,892 2002 $38,226 $42,497 $31,531 $41,766
Ratio comparing Sales Price of Existing Single Family Homes to Median Household Income
Year Florida Broward MiamiDade Palm Beach 1993 3.1 3.3 3.7 3.5 1994* 3.0 3.2 3.7 3.4 1995 2.9 3.1 3.7 3.4 1996* 2.9 3.1 3.8 3.5 1997 2.9 3.3 3.9 3.5 1998 2.9 3.2 4.0 3.2 1999 3.0 3.4 4.2 3.2 2000 3.0 3.5 4.2 3.3 2001 3.4 4.0 5.0 3.6 2002 3.7 4.6 5.9 4.7
(1) Source: Florida Association of Realtors and University of Florida Real Estate Research Center (2) Source: U.S. Bureau of Census, Small Area Income & Poverty Estimates. * Note - Annual Data N/A for counties in 1994 & 1996 (data shown in table is pro-rated); also methodology for estimation was changed in 1999.