Discover the secrets behind Florida rapid rise as America’s 2nd most valuable housing market. From luxury beachfront properties to bustling city apartments, find your dream home in this sought-after location.
Florida is reaching new heights as a result of the surge of lockdown-era buyers flocking to the state for its year-round warm weather.
Florida Housing Market
A new study by Zillow charting the change in national home prices since the pandemic indicates that Florida has the second most valuable real estate market in the country. According to Bloomberg, the Florida real estate market is worth $3.85 trillion, beating out New York’s $3.69 trillion and Texas’s $3.39 trillion. California remains unbeatable at the top with a market value of $10.18 trillion.
It is thanks to its recent population growth that Florida has seen strong new construction figures. According to Census estimates reported by Insider in March, Florida has welcomed 655,000 new residents since the start of the pandemic. Due to increased competition for existing housing stock in the state, home prices have also been pushed upwards.
According to Zillow, four of the top six markets that gained the most value since COVID-19 are located in Florida: Tampa (88.9%), Miami (86.6%), Jacksonville (82.4%), and Orlando (72.3%).
Stefanie Mortensen left Virginia for Florida in May because the state has no personal income tax, sunny weather, and luxurious beaches. She had been looking for a house along the coast, and settled on a $159,000 tiny house outside of Tampa. In August, she told Insider she didn’t regret moving. “I miss the people, I don’t miss Virginia, but I’m staying here as long as this works.”
A July study from Florida Atlantic University and Florida International University revealed that the state is home to five of the ten most overvalued housing markets in the US, with Tampa leading the state with homebuyers paying a 43% premium on their properties compared to historical rates, Insider previously reported.
Noelle Lane, a Tampa-area resident, told Insider in July that she was not planning on staying after graduation in December 2021. “In May, I actually bought a house with my boyfriend. We live in a family-friendly neighborhood outside of Tampa.”
There are four other Florida cities in the top 10 list, including North Port, where buyers pay a 43% premium, Cape Coral, with a 42% premium, Lakeland, with a 41% premium, and Palm Bay with a 40% premium.
According to Realtor.com, Naples, an hour south of Cape Coral, has the fastest-rising real-estate prices in the country, with a 17.1% increase in the median price per square foot since August 2022.
There is a growing problem of housing affordability
Both newcomers and longtime locals face affordability challenges due to the rising cost of real estate.
According to a report, about 61% of Miami renters are cost-burdened – people who spend 30% or more of their household income on rent.
A South Florida native, Nicole Panesso, had been living in Fort Lauderdale for $1,200 a month when she decided to move out. In 2022, she moved to Chattanooga, Tennessee, where her rent dropped to $950 for a one-bedroom apartment. “There’s no way for people here to afford it — their salaries don’t cover the rent.”
As a way to save for a down payment, David Triana, 27, moved back into his parents’ home in Clermont, Florida, in 2019. His fiancé and he have saved $20,000, but it isn’t enough given the rising real-estate prices and mortgage rates in the area.
We probably would have been homeowners for at least a year by now if the Florida housing market was more stable and mortgage rates were back to 3% and 4%.
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