Palm Beach County has a lot to brag about when it comes to real estate. Nearly 59% of mortgaged homes are equity-rich—meaning these homes are worth 50% more than what’s owed on them. In neighborhoods like Palm Beach (33480), that figure jumps to an impressive 79.8%. This booming market is largely driven by affluent buyers, pushing home values up even further. In fact, Palm Beach is thriving with impressive home price gains, despite rising mortgage rates and competition from wealthy buyers.
But here’s the catch: while long-time homeowners are getting richer in home equity, others are struggling to find affordable housing. A study by Florida International University (FIU) revealed a shortage of over 100,000 owner units and 38,000 rental units across Palm Beach County. Despite the county’s high median income of $104,000, households earning less than $145,000 are feeling the pinch. Prices are soaring, with gentrification and high demand pushing many homes out of reach for many locals.
To make things worse, Palm Beach is losing affordable homes faster than it can build new ones. In 2022, nearly 50,000 homes valued under $400,000 were lost, and rental properties under $2,000 per month dropped by 19,000 units. The county’s population is expected to grow by over 200,000 people by 2035, but construction hasn’t kept up. Many existing homes are over 25 years old, contributing to the affordability gap.
To tackle this crisis, local leaders are pushing for increased housing density, a $200 million housing bond, and other strategies. But, with high construction costs and rising interest rates, solving the problem won’t be easy. So, while the community shines as a real estate hotspot, there is also a divide between those with equity-rich homes and those trying to afford a home, and action is needed to bridge the gap.
