Will the Housing Market Crash? (May 2022)

The United States has experienced an unprecedented housing boom caused largely by the Covid pandemic. Demand for homes in certain markets increased exponentially especially as companies loosened or eliminated rules about where employees had to work from.

Clearly, many New Yorkers decided that paying Manhattan (or even Queens or Long Island) prices made no sense when they could move to Florida. In fact, a number of Wall Street firms took office space in southern Florida cities including Miami, Fort Lauderdale, and West Palm Beach.

That led to exploding prices in those markets because someone selling a Manhattan one-bedroom for $500,000 thinks they’re getting a deal when that same dollar figure buys you a two, or even three bedroom in one of those Florida cities.

The influx of New Yorkers had a ripple effect pushing locals farther north or even into Central Florida. Both of those markets saw increases, but not nearly at the pace of the price growth in Southern Florida. While New York briefly saw prices stagnate, that turned around when pandemic-related restrictions eased because while there were doom and gloom predictions about New York (and other big cities) they remain huge draws.