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Is the Auto Market in St. Pete Tied to the Housing Market?

by | Mar 21, 2021 | St. Petersburg, offermore, sell my car | 0 comments

We’ve all seen the housing market in Florida and especially Pinellas County, including St. Petersburg skyrocket in recent years. The factors behind this spike vary from the simple fact of the area being so abundant with good weather and general ease of living to savvy investors worried about banks and dumping savings into properties. So then, can this housing market boom have an effect on the auto market? In this article we will cover this however if you’re looking of the short answer; no, at least not directly.

Can the reasons behind the booming housing market effect the price of cars?

Among the reasons behind the housing market boom lays an underlying primary cause; population increase. Closing in on nearly one million residents, Pinellas County has seen an influx of nearly 60,000 residents since 2010 with 2021 seeing a total population just shy of 980,000. With Florida consistently lifting Coronavirus related restrictions while other more Norther states are much slower to open back up, some experts suggest 2021 may see an unprecedented influx state-wide. Pinellas County is home to some of the nations top rated beaches, making it a premium destination for those looking to move into paradise.

Source: worldpopulationreview.com

 

Will this population increase effect the auto market?

Ultimately, yes. However in a very indirect way. As more people move to the area increasing population, the local auto market sees both a higher demand along with a higher influx of used vehicles. This wont however have the same effect on how much you pay for a car, truck or SUV in St. Pete (or anywhere in Florida). Instead, Pinellas County is seeing an increase in dealerships to meet the demand. Conversely to the housing marketing, the increase in population may help bring down the cost of used vehicles as more enter the area.

 

What other factors may be contributing to the housing market and do they effect car sales?

While many experts originally estimated the pandemic could obliterate inflated housing prices nation wide the opposite seems to have happened. One big theory behind the continued boom is investor based; investors seem to think leaving their money in banks during a crisis could be a less than smart choice for a plethora of reasons. Thus, many are investing their liquid assets into something more stable, the housing market. This factor of increase will not have any real impact on the automotive market-place.

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