Pensacola ranks nationally as 'hidden gem' for homebuying, most competitive rental market
Multiple national organizations are recognizing Pensacola for its red-hot real estate market in 2021, essentially proving the market has been great for sellers and homeowners but exhausting for buyers and renters.
Two datasets released last week peg Pensacola as one of the top-performing real estate markets in the entire country, both for having the most competitive rental market and for being a "hidden gem" to find a home that'll appreciate in value in 2022.
It's a validation to what renters, buyers and real estate agents have been saying all year: that the pandemic has seen an influx of residents to the Panhandle with fewer homes on the market.
►Pensacola approves funding landlord-focused homeless prevention housing program
►Beulah I-10 exit, affordable housing: Here are Escambia's 2022 legislative priorities:
Here, experts say it's a mix of the pandemic allowing newly remote workers the freedom to live by the beach, the Pensacola area's relative affordability compared to other Florida beach cities and Hurricane Sally damage lowering of the number of available homes for sale or rent.
Recent months have shown some promise, though, as inventory continues to climb and competition gets a little less fierce in the buyer's market, but renters are still having a hard time securing housing as prices skyrocket and Realtors expect a busy market at least into mid-next year.
Pensacola on list of country's most competitive rental markets
Rental analysis site RentCafe ranked the country's most competitive rental markets based on how many applicants there were, how high their credit scores were — generally indicating they're a quality, competitive candidate for a home — and what percentage of rentals are occupied.
Pensacola ranked No. 11 on that list, with 96.7% of rental units occupied.
Nichole Chlewicki moved to the area recently from Chicago with her husband, 4-year-old and a Goldendoodle named Bodhi. They were able to snag a vacant snowbird rental in Orange Beach, Alabama, but will need to be out of there by February.
"It's basically like a full-time job trying to look for another place to rent," she said.
Chlewicki has alerts to her email for new listings on real estate sites like Zillow, as well as Realtors who are sending her listings as they see them, but she's also taken to social media groups and pages to find options that might not be listed anywhere else.
"We're not even looking for a huge place, and it's just crazy because everywhere we look, the prices are close to $2,000 and you could be in Chicago in a really nice apartment for like $2,500," she said. "A lot of people have said it's just the cost you pay to live in paradise."
She said she's called complexes and followed up with emails but never heard back, and they've considered buying in the city close to family, but are waiting because of how high purchase prices are.
"Personally for me, when we were looking for the short-term rental we're currently in, it seemed almost hopeless and impossible, and it still ended up somehow working out, so there's hope out there, we just have to hang in there and hope something comes up," she said.
The Pensacola Association of Realtors monthly rental report for November shows there were 174 rentals available in the region total compared to 243 in the same month in 2019.
►Tiny homes, vacant lots, fees: How Pensacola area could address affordable housing
►The next crisis? Pensacola's lack of low-income housing leaves many on brink of homelessness
Those rentals are also staying on the market for only 15 days on average, half the time they would have two years ago.
The RentCafe data shows an average of 25 renters would compete for a single vacant apartment in Pensacola this last year.
Pensacola is 'hidden gem' for those looking to buy a house
On the home ownership side, the National Association of Realtors has named Pensacola one of the "hidden gem" markets to buy in 2022 that'll see an appreciation of value outpacing other metro areas.
The national experts say Pensacola is one of the markets showing "more room for growth" based on studying factors like wage growth, job growth, population growth and median home price numbers.
"The housing sector performed spectacularly in 2021 in many markets, with huge gains achieved in places like Austin, Boise and Naples," said Lawrence Yun, NAR chief economist and senior vice president of research.
"Several markets did reasonably well in 2021, but not as strong as the underlying fundamentals suggested. Therefore, in 2022, these 'hidden gem' markets have more room for growth."
Though 2022 is expected to remain a seller's market, Century 21 AmeriSouth Realtor Grey Burge said he expects somewhat of a leveling off.
"My guess is it won't be as busy as 2021, but I expect it won't be any less busy than 2019 or 2018," he said. "I think the super red-hot feverish pitch we saw earlier this year that ran its course between March and July, I don't think we'll see that again next year."
Want to stay up to date on the latest news? Click here to subscribe to pnj.com.
He said as an example of the craziness in 2021, the number of available house listings dropped to post-Hurricane Ivan levels in 2004, which happened right before the 2008 market crash.
He said in this case, an expected rise of interest rates will likely slow down buyers and give inventory a chance to build back up, cooling the demand.
"I think we've peaked as far as absolute frenzy goes, but I think it will stay strong and stay a seller's market for some time, certainly the next six months or so," Burge said.
Emma Kennedy can be reached at ekennedy@pnj.com or 850-480-6979.
This article originally appeared on Pensacola News Journal: Pensacola ranked for competitive rental market, hidden gem homebuying
