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✅ Tampa's mental health investment, flood insurance, & new construction homes

✅ Tampa's mental health investment, flood insurance, & new construction homes

Here's some good news about Tampa Bay and Pasco this week.

Sean Bates
August 30, 2023

Happy Wednesday!

I hope that you and the people you love are all safe this week as Idalia rolls in.

In spite of the storm, there is lots of good news for Tampa Bay and Pasco this week.

Keep reading to see some hopeful info for our local area and the housing market.

—Sean

🏥 Tampa General Breaks Ground on New Mental Health Hospital

Driving the news: Tampa General Hospital's (TGH) Behavioral Health Hospital broke ground earlier this month. This marks the start of construction on the first and only free-standing academic medical behavioral health hospital in Florida.

By the numbers:

$10 million in state funding was used to support the construction of the hospital
The hospital will be approximately 83,000 square feet
There will be 96 to 120 inpatient beds
It is expected to open in late 2024

Details: The TGH Behavioral Health Hospital is a joint venture between TGH and Lifepoint Behavioral Health (based in Brentwood, TN).

The University of South Florida's Department of Psychiatry and Behavioral Neurosciences will provide physicians' services via inpatient and outpatient care.

The hospital will feature specialized units for pediatrics, adolescents, adults, and geriatrics.

Why it matters: As more people discover the importance of caring for their mental health, The Tampa Bay region has a growing need for this kind of facility.

The hospital will also provide a much-needed academic medical setting for the study and treatment of mental health conditions.

The bottom line: The TGH Behavioral Health Hospital is a major step towards helping the growing population of Tampa prioritize their mental health.

🌊 St. Pete-Based Insurer Gives Floridians More Flood Insurance Options

Driving the news: Wright Flood has launched its latest product, FocusFlood, to provide more accurate and affordable primary flood coverage for residential properties in Florida.

FocusFlood coverage integrates modern flood modeling technology and geospatial analysis.

Details:

FocusFlood offers a range of features that include:

Coverages up to $5 million for dwelling and $250,000 for contents
7-day waiting period for non-loan closings
Single deductible for both dwelling and contents coverage
Automatic replacement cost on both dwelling and personal property
Building ordinance and loss of use coverage
No elevation certificate required

The program aims to be straightforward, thereby reducing the complexities traditionally associated with flood insurance.

It employs the latest technology to offer granularly accurate coverage and ease the application process for both agents and property owners.

Why it matters: Flooding remains a critical risk for many U.S. states, especially Florida. FocusFlood will offer more flexibility and capacity for Floridians, making it easier for property owners to obtain coverage tailored to their specific needs.

The big picture: The introduction of FocusFlood comes amid growing concerns about increased severe weather and its potential to increase the frequency and severity of flooding events.

Several major insurance companies have stopped renewing policies in Florida so this new option comes at a crucial moment for many homeowners.

What’s next: Following the initial launch, FocusFlood will be available next month in California, Tennessee, Hawaii, North Carolina, Georgia, Mississippi, and Pennsylvania. Further expansion is slated for October to include Washington, Ohio, Alabama, Maryland, Virginia, Connecticut, and New York.

The bottom line: The introduction of FocusFlood provides a timely solution for states grappling with increased flood risks and has a technology-based approach that could set a new standard in the industry.

🏠 New Construction Homes Make Up ~30% of Homes on the Market

Driving the news: Newly built homes made up nearly one-third of U.S. single-family homes on the market in Q2 2023. This comes as the inventory of existing homes has hit an all-time low, pushing buyers to consider new construction options.

Details:

Three key factors are contributing to this trend:

Pandemic-induced building boom: Builders are riding the high wave of pandemic homebuying, spurred by low mortgage rates and remote work.
Scarcity of existing homes: With homeowners holding on to their low mortgage rates, new homes make up a significant portion of the dwindling available inventory.
Leftover Inventory: Elevated mortgage rates have slowed down buying, leaving builders with excess inventory that is now becoming more attractive to buyers.

Why it matters: The surge in new home construction reflects not just consumer preference but also necessity, because fewer existing homes are available for purchase.

The big picture: With inventory at record lows, a lot of buyers are turning to new construction instead of existing homes. However, the interest rate hikes have kept demand relatively low.

Some builders are lowering prices and offering perks to offload the excess inventory this has created. This is a great option for many buyers.

What’s next: As builders continue to adapt, we can expect a range of new promotional incentives and flexible financing options to attract buyers, especially if the inventory of existing homes remains low.

The bottom line: The increasing reliance on new construction homes represents a significant shift in the housing market.

With existing home inventory at record lows, newly built homes are not just a trend but a major pillar supporting the real estate market.

📊 Our Current Local Market Data:

The Pasco and Tampa markets are still hot for several reasons:

Inventory is low
Our job market is desirable
Many people are moving to the area

If you are thinking about buying a home in the area, you should be prepared for a competitive market. You will need to be pre-approved for a mortgage and be ready to act quickly when you find a home that you like.

I am happy to help you create a home-buying strategy that will allow you to navigate the current market.

If you ever have questions, don’t hesitate to ask.