S & J Journal

Following up on Monday's blog post, foreign homebuyers seek Coral Gables real estate from countries like Canada, Brazil and the United Kingdom where they find benefits to living and working here. In the Gables there are 17 Consulates and four Trade & Tourism offices. More than 100 corporations have their headquarters in Coral Gables, including Bacardi U.S.A., Del Monte Fresh Produce, Fox Latin America, and Colliers International.

International buyers spent $41 billion last year to purchase U.S. homes. An article in the new blog, Trulia Insights, reveals that 10 out of the 24 most popular American cities that have caught the eye of international homebuyers are in Florida. Reportedly, buyers from Brazil, Canada, the United Kingdom, France, Italy, Russia, Germany, Sweden and the N etherlands spent about $13 billion on homes in Florida alone last year. It is said that this is because Florida might be perceived as being friendlier to non-citizens, and home prices in Florida are at a six-year low. Spending from abroad might be a catalyst for a revived h ousing market in the Sunshine State. If Trulia’s findings are any indication, international investments can either make us the world’s second home or an even more multicultural community.

According to Harvard University’s Joint Center for Housing Studies’ 2011 annual report, “State of the Nation’s Housing”, 16 million new housing units will be needed to meet population growth and demands within the next ten years. From 2007-2010, household growth averaged about 500,000 per year – less than half the 1.2 million annual pace averaged prior from 2000-2007. The report predicts a need for 1 million new homes a year to meet population growth in the coming decade. To absorb the current rate of foreclosed and distressed homes around the country, household formation needs to begin to develop at a more normal rate, according to the report. The trouble is that household growth has partially stalled since young adults have delayed buying homes and immigration has slowed down. As a result, builders have drastically cut production of new homes in recent years. “With inventories of new homes at historic lows, a turnaround in demand could quickly result in tighter markets,” the report ...