One look at the chart below and it is pretty easy to see that something has to give in the Jupiter real estate market. At least if you think there is anything to the old saying that what goes up must come down.
What this chart clearly shows is what has happened to the median rental price of a single family Jupiter home over the past 10 years. Back in 2007 the median rental price of that Jupiter home was $1,950. In 2008 it fell to $1,925 and since then it has been pretty much straight up. In 2016 the median price was $2,800 up from $2,600 the previous year. So far in 2017 affordability remains a very big problem as the median price has moved higher to a new threshold of $3,000. For a median single family home rental in Jupiter. Unbelievable.
If you take a $3,000 monthly rental and apply a standard “housing ratio” it takes family income of $128,571 to comfortably afford to rent this median home. The median household income in Jupiter sits at $70,240 according to Sperling’s Best Places so there is a disconnect we need to watch. Closely. Breaking that down further, only about 25% of residents in Jupiter could afford to rent that middle of the road home. A large percentage of the top 25% earners in Jupiter are not renting and 75% of residents do not have enough income to justify this monthly expense for housing. There is a disconnect called affordability and it will be a driving force in the market ahead.
With rental prices up 56% in 8 years and 75% of residents not financially qualified to rent at today’s prices one has to wonder when the what’s going up starts going down.
Here at Paradise Sharks we strongly believe consumers of anything should be educated and make fully informed decisions. If you have any potential real estate decisions to make please interview at least 3 brokers and get educated. If you live anywhere in Palm Beach or Martin County Paradise Sharks would be honored to be included on your interview list and the opportunity to earn your business. If you live anywhere else and we can be of help in any way you can reach out to us. It’s what we do. Anyone is invited to reach us at your convenience at firstname.lastname@example.org or 561.308.0175.