Citadel, a $59B hedge fund, moved its headquarters from Chicago to Miami in June 2022. Many Citadel employees are purchasing luxury homes in Miami suburbs. The influx of buyers has created a shortage of high-end homes in areas like Coral Gables and Coconut Grove.

Lower mortgage rates could stimulate home sales and ease inventory constraints in 2024. However, it's unlikely the 30-yr mortgage rate will drop below 6% soon. If the Fed raises rates further, housing affordability may worsen.

Florida's Live Local Act, which allocates over $700 million for incentives to develop affordable housing, took effect July 1. It mandates local governments to authorize the development of multifamily rentals on sites that are zoned as mixed-use residential, commercial or industrial if at least 40% of the residential units will be affordable to people making…