Across the highway from me is a sea of new suburbs that never cracked $150,000 even at the height of the boom, many of which are now in foreclosure. The only people still in their homes are snowbirds, military families and well heeled refugees who fled Hugo Chavez.
And those $150,000 homes still require flood insurance before any bank will allow the loan. And no insurance company outside of the state-owned one is offering.
And the state-owned one, being able to insurance only Florida homes, has to charge very high yearly rates, which many can’t afford.
Which means no loan, even though the customer could afford it.
My folks live in Florida (Jupiter) and I grew up there. I hear about the problems regularly.