The House Source

There is one aspect of global warming that’s worth considering when making real estate investments, especially if you live on the eastern coast of North, Central, or South America: namely the warming of the Atlantic. Beach real estate is going to be a more precarious investment because insurance is going to run much higher as water levels continue to rise, owing to the melting ice caps. This means that in Florida, Palm Beach and Miami could be cities protected by levies if no gradual shift inland takes place. It also means that semi-coastal communities like Jacksonville, Ponte Vedra, and Atlantic beach will become prime beachfront real estate, making them a good investment now, as long as you don’t have to shell out for the expensive flooding and hurricane insurance premiums paid for beachfront properties.

While half-built condos in Palm Beach, Del Ray, Boca, and Miami have seen drops in asking price of over 30% in many cases, one area where condo prices have held up nicely is Jacksonville. Florida Real Estate is not necessarily all connected, one broker explained to me. The biggest factors in determining prices on new condos are supply and demand, sure, but one the big driver is not the supply built by new builders but the demand shifts caused by demographic changes. In Jacksonville, the economy has grown tremendously as a function of college graduates not wanting to move from this relative young person’s paradise. That translates into a cheap work force, which brings in more employers, which creates a greater demand for decent condo-style housing. This, and not a lack of supply, has been the driver of prices in Jacksonville, and that is why condo prices there will continue to increase.