Florida, a tourist’s paradise with a warm tropical climate and stunning beaches draws people not only from around the world but from other states in the USA too. These are some of the reasons why people want to relocate to Florida. Hence, the state is among the most wanted real estate markets in the USA.
It is therefore not surprising that in the current year alone, the number of housing units sold saw an exponential jump of over 36% as compared to the previous year. This is just an example of how lucrative and rewarding Florida real estate is for homeowners, investors, salespersons, and brokers.
Overview of Florida Real Estate Market
Since the pandemic, the Florida real estate market has been growing at a steady pace year-on-year. This trend is evident as Miami has displaced Washington D.C. to claim the fifth spot as the most valuable metro in the U.S.
Florida real estate market predictions have scoped out amazingly well, as the state is home to four of the top highest-growing real estate markets in the country. These include - Miami, Tampa, Orlando, and Jacksonville which have shown tremendous growth in market valuation.
Surprised already? Wait till you hear another shocking statistic about the Florida real estate market. In the last five years and so, housing prices have increased by almost 80%. Thus, since the earnings of salespersons are commission-based, Florida real estate license holders are earning lucrative amounts.
This growth implies that the Florida real estate market continues to boom post-pandemic, despite many other states seeing a slowdown.
Wondering what exactly are the reasons for the market growth in the sunny state? Let’s find out more about the key real estate trends in Florida and its burgeoning property market.
Key Factors Influencing the Florida Real Estate Market
According to Zillow’s data and research, since 2022, Florida has surpassed New York to become the second-highest-valued real estate market, trailing only behind California. Hence, once you learn about how to get a Florida real estate license and complete the process to earn a Florida real estate license, the sky is the limit for your earnings.
Just how did the real estate housing market in Florida catch up to one of the most popular and thriving hubs for migrants?
Let us check out a few points in this connection.
- Promising Climate: The warm tropical climate in Florida draws people around the year, especially those wanting to get away from the snow and the mist in their states. Central Florida feels temperate during winters while Southern Florida has a summery climate around the year, making the climate diverse across seasons.
- Attractive Lifestyle: Florida’s property market is also growing due to the attractive lifestyle options it provides to homebuyers and investors. Beautiful beaches, scenic views, golf courses, entertainment centers, and national and theme parks make Florida an excellent investment option for those looking for a well-rounded living.
- Growing Job Opportunities: Employment is one of the most important factors to consider when moving to any city and thankfully, Florida has added around half a million new jobs in the last two decades. Cities like Tampa and Orlando have shown a steady increase in the number of work opportunities. Even Jacksonville ranks among the top 50 cities in the country for its job outlook.
- Tax benefits: One of the most advantageous factors of living in Florida is that residents do not have to pay any income tax. This means savings on capital gains and no need to pay additional taxes. This puts Florida amongst the top most affordable states to live across the country.
Thanks to the stable economy, world-class entertainment, pleasant weather and a diverse community, Florida is quickly becoming one of the most attractive and popular cities in the country for migrants and investors. So, go through the Florida real estate license requirements, get a Florida real estate license and cash in on the opportunities in real estate in the state.
Let’s dive deeper into the current trends defining and influencing the property market in Florida.
Current State of the Florida Real Estate Market
Recent market movements in real estate in Florida
Let us check out the most interesting market trends in the real estate industry in Florida.
- In terms of the value of real estate, Florida is the second-highest in the USA in 2023.
- Post the COVID-19 pandemic, 4 cities in Florida were placed among the top 5 housing markets in the USA.
- The median sale price for homes hovered around the $400k mark in 2023.
- The demand for mortgages by buyers and investors has been very low in 2023 as most purchases have been made in all-cash deals.
- Demand for homes in Florida far outstrips the supply and hence the state may be considered as a sellers’ market in 2023.
- Mortgage rates in Florida are on the higher side, currently at more than 7 percent, which can be discouraging for potential buyers and investors.
- Florida’s real estate market is poised to be stable in the coming years and trends suggest that cities like Florida and Orlando will continue to witness high demand.
Market conditions in different Florida cities
Sometimes, looking at the entire state’s real estate market is not a fair way to understand the different conditions and market situations.
This is why knowing the specific state conditions in Florida is a must to get an objective view of Florida’s real estate market. Here are some key stats to give you an overview:
- Miami: Most suitable for short and long-term investment opportunities due to the high influx of travelers and tourists
- Tampa: Most suitable for first-time homebuyers and investors as Tampa has seen historically high growth rates in property.
- Jacksonville: Most suitable if you are on a tight budget as the entry price is lower than other cities in Florida.
- Orlando: Most suitable if you are looking for a long-term investment especially due to the various entertainment centers, theme parks, and growing employment rates.
With its bustling charm and plethora of lifestyle choices, Florida’s real estate market predictions and trends are pointing toward continued growth and a sustained influx of migrants in the upcoming years.
Leading Florida Real Estate Markets
One of the fastest-growing real estate markets in the country, Florida is home to numerous cities and neighborhoods offering something for everyone. Whether you are a nature lover or an urban dweller, there are plenty of choices for homeowners and investors.
Do you want to invest in the best real estate markets in Florida? Let us check out a few locations.
- Miami: One of the most popular and attractive locations for investment, Miami is the melting pot of culture, nature, and lifestyle choices. A perfect tourist hub with a thriving economy, Miami is home to a booming housing and property market. The city enjoys an average occupancy rate of around 70%, which is significantly higher than the country average of 48%, making it a good investment choice for the short and long term. On top of it, the increase is around 30% in the prices of homes.
- Orlando: For home buyers on a budget as well as traditional investors, Orlando in Florida will perfectly fit the bill. It offers both low-end to luxury properties, giving buyers a range of investment options. Plus, Orlando is one of the most popular tourist destinations, thanks to the presence of some of the country’s biggest theme and entertainment parks.
- Tampa: One of the emerging real estate markets in Florida, Tampa is a good choice for first-time homeowners and property buyers who want to dip their toes into the state’s growth potential. Known as a high-growth area historically, Tampa Bay is amongst the top 3 cities for migrants coming to Florida. The average home price has increased in value by 35% since last year, making this city a lucrative investment destination.
- Jacksonville: If you are a price-conscious homebuyer or real estate investor, then Jacksonville is one of the more suitable locations in Florida. The area offers both short-term and long-term investment opportunities with a diverse mix of property types. Data suggests that Jacksonville’s housing market has witnessed around 25% growth in one quarter, and has the potential to grow even further in the coming future.
These are some of the most popular investment markets in the state of Florida state, which has quickly become one of the fastest-growing real estate markets in the world.
Now, let’s look at some of the factors that one should keep in consideration before zeroing in on a potential investment opportunity in Florida.
Factors to Consider in Determining the Best Real Estate Markets in Florida
Whether you are a homebuyer or a property investor, determining the most suitable property depends on your preferences, needs, and market circumstances.
So, how can you determine whether a property market is in a good shape and stage to invest in? Let’s find out some factors that make Florida an attractive real estate market in 2023 and beyond:
- Location Desirability: Florida is one of the most popular and attractive tourist destinations in the country, and it is quickly becoming a desirable residential state as well. Being one of the hottest entertainment and vacation spots in the U.S., Florida enjoys a consistently high influx of tourists and permanent residents every year. This makes it a great investment destination for long-term homebuyers and short-term fix-and-flip investors.
- Employment outlook: Job opportunities and employment ratio is one of the key influencing factors in determining the growth potential of the real estate housing market in Florida. Florida’s job outlook has improved significantly over the last decade, especially due to a 30% growth in the state’s GDP.
- Population growth: Florida has been witnessing a considerable increase in the number of migrants and it continues to draw more people every year. It is projected that Florida’s population will reach 23 million by 2025 and this makes it a strong prospect for investors due to the strong demand for housing.