Floridians Optimistic About U.S. Economy
Expectations among Florida residents about the U.S. economy over the next five years reached levels not seen since July 2021.
GAINESVILLE, Fla. – Consumer sentiment among Floridians ticked up 1.3 points in April to 73.3 from March’s revised figure of 72. National sentiment, on the contrary, dropped 2.2 points.
“The rise in consumer sentiment is attributed to Floridians' positive views regarding the nation’s economic outlook. In particular, expectations about the U.S. economy over the next five years reached levels not seen since July 2021. This period coincides with the escalation of inflationary pressures that began in the second quarter of 2021. However, these price hikes were not initially viewed as concerning. While average annual inflation surged from 1.9% to 4.8% between the first and second quarters of 2021, reaching 5.3% in the third quarter, it wasn't until 2022 when the Fed initiated one of the most aggressive tightening cycles in decades by increasing interest rates to control it,” said Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.
Among the five components that make up the index, four increased and one decreased.
Floridians’ opinions about current economic conditions improved in April. Views of personal financial situations now compared with a year ago increased 1.4 points from 59.8 to 61.2. However, opinions varied by demographics with people younger than 60 and people with an annual income under $50,000 reporting less favorable opinions.
Opinions as to whether now is a good time to buy a big-ticket item, such as refrigerators, cars, or furniture increased one point from 62.9 to 63.9. Similarly, opinions were split by demographics, but in this case women, people older than 60, and people with an annual income under $50,000 expressed more pessimistic views.
Future economic expectations portrayed a mixed outlook in April. On the one hand, expectations of personal finances a year from now decreased 1.1 points from 83.7 to 82.6. However, men and people older than 60 reported more positive expectations. On the other, outlooks about the country’s economy were more optimistic.
Expectations about the U.S. economic conditions over the next year increased 2.9 points from 73.3 to 76.2, while views of U.S. economic conditions over the next five years increased 2.1 points from 80.5 to 82.6. Notably, these expectations were shared by all Floridians, except for people with an annual income under $50,000, who reported less favorable views regarding the latter component.
“Following a robust labor market and rising consumer confidence levels, economic growth remained positive in the first quarter of the year, driven by increases in consumer spending, with an annual rate of 1.6%. However, inflation has risen over the same period, despite the Fed’s efforts to control it. The latest inflation data from both the Department of Labor Consumer Price Index (CPI) — and the Department of Commerce Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred measure of inflation — suggest a potential trend reversal, with increases observed in March,” said Sandoval.
“Looking ahead, this reversal is likely to deter the Fed from implementing interest rate cuts during the summer, as previously anticipated. Moreover, it could translate into reduced consumer confidence, further exacerbating the risk of a potential downturn and hampering the expectation of reduced inflation without a recession,” Sandoval added.
Conducted March 1 to April 25, the UF study reflects the responses of 250 individuals who were reached on cellphones and 293 individuals reached through an online panel, a total of 543 individuals, representing a demographic cross section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2, the highest is 150.
Born
Benjamin Henry Latrobe (architect) – 1764
Glenn Ford (actor) – 1916
Jack Paar (entertainer) – 1918
Joseph Heller (novelist) – 1923
Rita Coolidge (singer) – 1944
Joanna Lumley (actress) – 1946
Tim McGraw (country singer) – 1967
Ariel Gade (actress) – 1997
Realtor.com® February Rental Report: Renting Now Beats Buying in All of the Largest U.S. Metros
SANTA CLARA, Calif., March 26, 2024 /PRNewswire/ -- Elevated mortgage interest rates, still-high home prices and falling rents have made it more affordable to rent than buy in all of the top 50 U.S. metros, according to the Realtor.com® Rental Report released today. In February, the mortgage payment on a starter home in the largest metros cost $1,027 (+60.1%) more than the monthly rent in those markets, on average. At the same time last year, 45 metros favored renting.
The top 10 metros with the largest rent versus buy savings (see below for top 50 metros):
1. Austin-Round Rock-Georgetown, Texas – $2,165 monthly rent savings (141.5% difference)
2. Seattle-Tacoma-Bellevue, Wash. – $2,422 (121.1%)
3. Phoenix-Mesa-Chandler, Ariz. – $1,528 (99.0%)
4. San Francisco-Oakland-Berkeley, Calif. – $2,689 (95.5%)
5. Los Angeles-Long Beach-Anaheim, Calif. – $2,539 (89.7%)
6. San Jose-Sunnyvale-Santa Clara, Calif. – $2,780 (86.7%)
7. Nashville-Davidson-Murfreesboro-Franklin, Tenn. – $1,366 (86.0%)
8. Portland-Vancouver-Hillsboro, Ore. Wash. – $1,396 (84.4%)
9. Sacramento-Roseville-Folsom, Calif. – $1,514 (82.1%)
10. Houston-The Woodlands-Sugar Land, Texas – $1,103 (80.0%)
"With rents continuing to fall and the cost of buying a home remaining high, exacerbated by the rise in mortgage rates in the later half of 2023, renting a home is now a more cost-effective option in all major U.S. markets," said Danielle Hale, Chief Economist at Realtor.com®. "Deciding whether to rent or buy often goes beyond a financial advantage though, and likely depends on a consumer's circumstances. Renters often prize flexibility while the biggest reasons homebuyers cite are that they want a place of their own and to be closer to family and friends. The financial scales have tipped monthly costs in favor of renting over buying, but it does not bring the benefit of housing wealth gains over time that owning does and movers should consider their long-term housing plans and personal situation as they make this decision."
The overall advantage of renting continues to grow in most markets
In February, the cost of buying a starter home in the top 50 metros was $1,027 (60.1%) higher than renting one; comparatively, the cost to buy was $865 higher than renting in February 2023 – a $162 higher monthly savings from renting compared to the prior year. The savings are mostly driven by declining rent prices and higher buying costs, especially interest rates – the 30-year fixed mortgage rate remained elevated at 6.78% in February 2024 compared to 6.26% 12 months ago.
The advantages of renting have become more pronounced across the top metros. Looking specifically at the top 10 metros that favor renting over buying, the average monthly costs for buying a starter home were $1,950 (95.6%) higher than rents – nearly double the cost. Those metros are mostly markets with a higher concentration of tech workers and high earners, where both the average rent and buy costs are higher than the national average.
Renting beats buying in all major metros, especially in south and west; five metros flip from last year
In February, median rents fell across all unit sizes. Despite seven months of annual rent declines, median rents are still $252 (17.3%) higher than the same time in 2020, before the onset of the pandemic. Last February, 45 metros favored renting, but over the past 12 months Memphis, Tenn, Birmingham, Ala., Pittsburgh, St. Louis and Baltimore metros flipped from favoring buying to favoring renting. Four out of five of those markets were among the top markets seeing a high share of investor activity, which may have accelerated the growth of home prices there and increased the overall costs of buying a home, tilting those markets further toward favoring renting over buying.
Austin, Texas, where the monthly cost of buying a starter home was $3,695 – 141.5% more than the monthly rent of $1,530, for a monthly savings of $2,165 – topped the list of markets most favoring renting. Other top markets favoring renting over buying were Seattle, Phoenix, San Francisco and Los Angeles. Metros with diminishing rental advantages were San Jose, Calif.; Dallas; San Francisco; Columbus, Ohio; Miami; and Minneapolis.
Methodology
Rental data as of February 2024 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the top 50 largest metropolitan areas. Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.
The monthly cost of buying a home was calculated by averaging the median listing prices of studio, 1-bed, and 2-bed homes, weighted by the number of listings, in each housing market. Monthly buying costs assume a 8% down payment, with a mortgage rate of 6.78%, and include taxes, insurance and HOA fees.
With the release of its January 2024 rent report, Realtor.com® incorporated a new and improved methodology for capturing and reporting more comprehensive rental listing trends and metrics. The new methodology is expected to yield a cleaner, more representative and more consistent measurement of rental listings and trends at both the national and local level. The methodology has been adjusted to better represent the true cost of primary housing for renters. Most areas across the country will see minor changes with a smaller handful of areas seeing larger updates. As a result of these changes, the rental data released since January 2024 will not be directly comparable with previous releases and Realtor.com® economics blog posts. However, future data releases, including historical data, will consistently apply the new methodology.
Mark Hoeft ~ 850-525-2765 ~ Mark@TheFloridaCoast.com ~ The Florida Coast Realty Pensacola
Welcome to TheFloridaCoast.com; I would like to introduce myself, my name is Mark Hoeft I am a Florida Real Estate Broker & Owner of The Florida Coast Realty Pensacola LLC in Pensacola, Pensacola Beach, & Gulf Breeze Florida, I also the proud owner of The Florida Coast Realty West Palm & The Florida Coast Realty Destin Florida. It would be my honor to help you find your slice of Florida's beautiful Emerald Coast that you've been searching for. Whether you are looking for your primary home, a second home, or investment property for your Real Estate portfolio on Florida's beautiful Gulf Coast. I specializing in Beach Homes, Condos, and Townhouses. I use my 20 years of knowledge and dedication to hard work to make your real estate transaction as smooth as possible. I've become a leader in buying and selling Pensacola Real Estate, Scenic Gulf Breeze Homes, and Pensacola Beach Condos & Homes. I pride myself in my professionalism and expertise. I've closed over 350 real estate transactions and have totaled more than $40,000,000.00 in sales during the past 20 years.
TUESDAY, may 1, 2024
Died
Pope Pius V – 1572
Dr. David Livingstone (explorer, missionary) – 1873
Spike Jones (band leader, musician, & comedian) – 1965
Advice of the DaY
A snowstorm in May is worth a wagon load of hay.
Events
Great Britain formed– 1707
Electric streetlights installed in Ottawa, Ontario– 1885
Scofield Mine disaster occurred in Utah– 1900
The Empire State Building was dedicated in New York City– 1931
Gwendolyn Brooks became the first African American to win a Pulitzer Prize– 1950
Existence of Van Allen radiation belts announced– 1958
Harper Lee won Pulitzer Prize for her novel, To Kill a Mockingbird– 1961
Elvis Presley married Priscilla Beaulieu in Las Vegas– 1967