New Construction Market In Palm Beach County Not For Everyone

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By: Karen R. Laurence Special to the Boca and Delray newspapers
Builders in Palm Beach County started fewer homes in 2016, under 2,000, a 12 percent decline from 2015. Seems hard to believe with all of the construction going on. The prices have risen on over half the resale homes available. The demand is there for more housing units, as the Baby Boomers retire and the First Time Home Buyers come into the Market. There is a shortage of inventory, in both new construction homes and resales, which is causing the housing prices in Palm Beach County to go up. This combination of the perfect storm, is resulting in the Baby Boomers and First Time Home buyers being priced out of the market, both for new and resales.
Palm Beach County new homes, are controlled by large developers such as GL, WCI. Ansca, Lennar, etc. In Western Delray Beach, the new construction is either 55 plus or priced to start at the $400,000s and up. These price points are hard for the First Time Home Buyer or a Baby Boomer to afford. Both groups feel they will be throwing out money by not purchasing their own home. The Lyons Road corridor is full of new and old, pricey homes that have caused more large shopping Centers, such as the Delray Marketplace, to offer food and entertainment associated with East Atlantic Avenue.
A large segment of the population is being shut out due to affordability. Two facts that are true; Every buyer would like to have new construction and wants to be in a close proximity to Delray Beach. Delray Beach has the day and nightlife that is stimulating and full of choices as well as culture and events.
There is no solution in sight for Baby Boomers and First Timers, to be able to afford new construction. There are some lower priced resales in the 55 plus market. Not so many in the all-ages housing. They may just have to forget their first dream-new construction, and take a resale hovering around the $300,000 mark.
Karen Laurence is a sales associate with The Keyes Company. She is Technical Real Estate Instructor, Real Estate Agent and Certified Luxury Agent.