In recent years, Florida has been a hot topic in the U.S. housing market due to its resilience and impressive growth. Most recently, it has been named the best state to buy and sell a home in 2024 by CNBC. The Sunshine State’s real estate market presents unique opportunities, making it a focal point for homebuyers and investors.
Current Market Trends
Florida home values are rising, and developers are moving fast to keep up with the demand as new residents flock to the state. As of 30 June 2024, home prices in Florida have increased by 2.5% compared to the previous year and the average home value currently sits at $398,077, according to Zillow.
One-quarter of homebuyers nationwide searched for homes in different metro areas between April and June 2024, with Florida being one of the top five states considered for relocation (Redfin). Four areas within Florida, including Cape Coral and North Port, ranked among the top ten for inbound migration across the U.S Additionally, Miami saw more property searches than any other metro area in the country.
In Florida, the National Association of Realtors estimated that real estate accounted for 24.1% of the gross state product in 2023 and was the No.1 contributor in the country. Florida accounts for 23% of foreign purchases in the United States, making it the top destination for overseas buyers.
Foreign investors are particularly interested in waterfront properties, especially in areas such as Miami Beach, Fort Lauderdale, Sarasota, and the Florida Keys, which are also highly populated with tourists throughout the year.
Why Are People Moving To Florida
With over 1,200 people moving to Florida daily, it’s worth exploring what attracts so many new residents. Notably, 27% of newcomers are millennials. Despite the significant increase in home prices—up to 31% in the past five years—Florida homes remain about 13% to 18% more affordable than those in New York and New Jersey.
Several factors contribute to Florida’s allure, one being that Florida’s locals will not incur any state income tax. It’s one of just seven states that don’t collect personal income tax, allowing residents to benefit from tax-free pensions and retirement pay, along with no state taxes on Social Security or investment income. The Sunshine State has an abundance of job opportunities, thanks to Tampa’s growing tech sector and Miami’s thriving business scene, which entices young professionals and families.
With over 250 days of sunshine per year, it’s not surprising that so many people want to live in Florida. From South Beach in Miami to Fort Lauderdale, the state offers a variety of alluring coastal locations.
According to FOX 13, Florida is leading the U.S. in terms of economic performance and education, ranking first place in both sectors. The State also has numerous cities frequently appearing in Forbes’ Top 25 US cities with the best quality of life, making it an ideal destination for residents.
Future Outlook
Florida’s home values have soared by about 80% over the past five years, and this positive trend is set to continue. Even with a more balanced inventory level, the state’s housing market remains robust, with projections indicating sustained growth over the next five years. This is excellent news for owners as rising property values suggest a healthy return on investment.
In 2024, Florida stands out as the best state to buy and sell a home, offering a dynamic and promising real estate market. With increasing home values, a steady influx of new residents, and attractive living conditions, the Sunshine State continues to shine brightly as a destination for real estate investment. Whether you’re looking to purchase your dream home or sell your property at a profit, Florida’s housing market presents unrivalled real estate opportunities.
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