why are homes in the USA - such as Florida - so cheap?

Question

I live in the UK. When I see programmes about people thinking of buying houses in the USA I am amazed that houses in desirable areas such as Florida seem to be so cheap to buy. Big houses, small price.
There must be a catch somewhere, or Americans would buy up all the houses advertised at a bargain price.
All I can think of is that there expensive hidden charges, such as the cost of repairing the roads and footpaths outside the Florida homes. And high charges for other services, like water, gas, electricity, phones, as well as compulsory fees for maintaining individual gardens and communal grassed areas and flower beds.
I am sure that lots of people will be able to tell me whether it is cheap or expensive to live in Florida, once the house itself has been paid for.

Answer 1

Because some are made with cheap materials. Especially mobile homes, which many are not up to code, and can be destroyed by the storms we've been known to get here recently. Concrete Block or steel is possibly the best protection against severe weather.
Hurricanes and tornadoes are not fun, so if your home needs to be improved, there are mere days before the next big storm is scheduled to hit!! ( A weatherman friend had informed me that something is coming across FL very soon.)

Houses here in FL range anything from $150K to $1.2 million. Most of the new homes built in my county average $250-$450K. That is not cheap to me. $60K-$90K is cheap, but those homes are around 15-20 years old or more, and just need much remodeling done to upgrade them. There are some developers slashing prices or including more amneties with the home, such as throwing in a free car or motorcycle with purchase. Or adding on more appliances or increasing space in a room, such as using a built-in for storage, etc.


With all the new houses and neighborhoods going up, and the retail centers, etc, and the current drought conditions, we are having a TIME trying to find water and utilities for residents here, and there are sinkholes and other issues in spots, and all the weather craziness(like hurricane season and our recent wildfire frenzy)....so that is the problem, as well as FL homeowners insurance, and such. I wish we could catch a break soon, or else I want to move out of here!

Answer 2

Well you will need spare tires for sure, is this your own car or is it a rental? reason i ask is because depends on what your driving parts may not be very accessible here in the states. If your planning this trip right now winter weather here in the northern states is harsh very cold. Here in North Dakota it was 44 below zero just to give you an idea. So winter weather gear is a must and i really wouldn't recommend getting caught in a blizzard. Expect some kind of break down specially being on the road for 40 days so do carry a cell phone and it may not be a bad idea to know where your going so you can plan ahead with phone numbers of places in the areas you will be in. Like the others have said stay in safe places there are a lot of Waco's out there and only carry enough cash to get you by for about a day or two. Make sure you have enough gas to get you to your next destination a lot of states have small towns in between and the gas stations aren't always open. My family and I traveled from North Dakota to New York which is 1700 miles apart we had three break downs on our way there and it wasn't easy finding parts stores in some of the towns we broke down in, so i hope you know a little something about fixing cars or it could cost you a bundle of money in a mechanics shop if you can find one open. If you do have a break down and there are no mechanic shops open and the weather is crappy you will have to rent a room for the night. Always expect to pay more then you think you'll have to so make sure you have emergency money put away. Well i wish you luck on your journey be safe!

Answer 3

The first thing most Europeans forget about the US: Lots of land! The state of Florida is larger than Ireland, so we're talking lots of open land, most of it privately owned so there's no significant restriction on building. Cheap land helps keep house prices down.

Then again cheap is all relative; there's a huge swing in property prices depending on what part of Florida you live in. Miami Beach is not cheap, even by London standards. There's also huge difference in the job markets; good paying jobs are scarce in some parts of Florida, which also keeps a lid on property prices. Florida has no income tax, so they pay higher property taxes and sales taxes. Insurance is outrageous but beyond that, what you see is what you get.

Sell your UK place and retire to the USA! You can tell us how bad our beer tastes, locals will dig your accent and we'll all think you're cool.

Answer 4

I think it depends on where you live in Florida.

Some areas have higher real estate prices, more expensive restaurants and stores (including premium pricing on groceries and gasoline), higher real estate taxes and real property insurance - particularly for flood and windstorm insurance.

These pricier areas tend to be along Florida's shorelines. So many people dream of living on the beach someday, but not every one can afford the price tag.

Inland, things are more affordable - but there's no beach, and you may be a far drive from a full slate of cultural and entertainment options.

There are still a few bargains left in Florida, if you are a beach baby, and want to be near the exciting stuff.

Consider Venice, on the Gulf of Mexico, only 15 minutes south of Sarasota, 1 hour from Tampa, 2 hours from Orlando, and so on.

Check out www.searchforvenice.com for more information and pictures on the area, and links to community resources - plus a search engine for real estate that doesn't require registration.

There are certainly some wonderful opportunities right now, in all price ranges, and all lifestyles (condo on the water? golf course community? maintenance free villa? country club living? boat in the backyard? pool home near the beach?).

Best wishes and good luck!

Answer 5

The housing market in Florida is extremely depressed right now and that drives prices through the floor.

Answer 6

I am in California, we do not think of houses as "cheap" here, they average about $650,000 for a modest home, and that is actually down some. The rest of the country must be a lot cheaper. Hawaii is high but not as high as this.

Answer 7

It is expensive to live in Florida. Once you buy the house you have outrageous property tax as well as high insurance rates due to the hurricanes.