14

New Construction Condo Boom

by Rich Barnhart

I

f you haven’t visited downtown Fort
Lauderdale or driven by the beach

lately then perhaps you didn’t even
realize how much new construction is
going on in the Fort Lauderdale area.
Broward County doesn’t get as much
attention since, according to The Real
Deal, 72% of new condo starts in the tri-
county area are located in Miami/Dade

County. With only 8% of the activity in Palm Beach, that
leaves about 20% of the new condo construction in
Broward County, including 29 projects and a total of about
1,900 units currently under construction.

So, who is buying all of this new condo inventory? In
Miami/Dade the majority of buyers are international, while
here in the Fort Lauderdale area we tend to have more
domestic buyers. In our experience and in discussions with
local developers we are finding that many of the Broward
buyers are locals, either empty nesters or retirees
downsizing and moving east to live by the beach. This is
good news for our local market since the strong dollar is
making it much more expensive for international buyers to
invest in the higher priced Miami marketplace. Another
benefit for those buyers who are downsizing is that most
single family neighborhoods in Broward are experiencing
a seller’s market making it easier to get top dollar for their
current homes and opening up inventory for resale single
family buyers. 

We are also watching condo inventory levels closely since
overbuilding is always a concern in this stage of the real
estate cycle. Looking at the condo resale market in the

downtown and beach markets of Fort Lauderdale, we
currently have just over 7 months of supply. While anything
higher than 6 to 7 months is considered a buyer’s market,
there is no reason for concern yet. Many developers are
selling a large percentage of their inventory before even
breaking ground and demand for lower priced resale units
remains strong. So, our new construction condo boom
doesn’t seem to be having a negative effect on the overall
market, at least not yet.

The big question is whether demand for new condo
product in the Fort Lauderdale area will continue. Our
domestic oriented marketplace and relatively inexpensive
condominium costs (compared to Miami) are definitely
favoring continued demand. And, for buyers who depend
on financing, interest rates remain low for now. However,
interest rates cannot stay low forever and affordability will
eventually become a problem as buyers start considering
other less expensive Florida markets. Bottom line, we
should enjoy this market while it lasts and if you’re
considering a move, now is a good time to sell and buy
that brand new condo on the beach that you’ve always
dreamed of.  

I

Rich Barnhart
Landings Resident and Broker/Owner 
By the Sea Realty, Inc

223 Commercial Blvd.
Lauderdale-by-the-Sea, FL 33308
(Corner of Commercial & Sea Grape)
954-351-7007
www.bythesearealty.com

Real Estate