Five Reasons to Buy an Apartment in Florida

Five Reasons to Buy an Apartment in Florida

The market of real estate in Florida, like other regional markets, goes through certain cycles. There is usually an imbalance in supply and demand at the beginning and end of such cycles, which opens up new opportunities for experienced investors. In 2024, according to experts, the phase of the cycle is favourable for buying houses or apartments in Florida. This is because the market currently shows very high demand for both resale properties and off-plan projects in Florida while the supply is extremely low.


This unbalanced situation has persisted in the state for almost three years, pushing prices up. However, in recent months, a number of factors—primarily the increase in mortgage rates—have driven the market in the opposite direction, trying to bring it to equilibrium. As a result, a new microcycle has begun in the state’s real estate industry, which makes the current period the most appropriate for choosing an apartment in one of the development projects in Florida.

Here are five reasons why it is profitable to buy property in the Sunshine State right now.

1. One of the greatest real estate appreciation potentials in the world

Miami remains among the top destinations for luxury real estate investment in 2024, according to the latest projections published by a number of international housing analytics companies. In the next 12 months, the expected appreciation in the luxury segment of the Miami real estate market will be 5% per annum. Even the recent increase in interest rates and consequent increase in the number of properties for sale will not stop the rise in prices. Demand in this segment still exceeds supply, and especially unique properties are sometimes sold for 1.5–2 times the price at which the seller bought the house just a few years ago.

Five Reasons to Buy an Apartment in Florida

2. Rapid growth of the state’s economy

Florida is one of the fastest economically growing states in the US. According to the Florida Apartment Association (FAA), Florida will receive about 3.2 million new residents by 2030. This comes after a decade of record growth. Between 2010 and 2020, Florida grew by 15% (by 2.7 million people), ranking third among the most populous states in the US after California and Texas. Based on the number of new residents in the Sunshine State, the FAA predicts that 570,000 new homes will be needed to meet demand by 2030.

Such an influx of new residents increases the demand for property, putting pressure on the market, which means a lot of appreciation potential for those who buy homes now.

3. Potential rise in prices due to the shortage of new properties

According to market participants, in the next five years, builders will not be able to meet the demand for Florida housing. The above-mentioned influx of new residents has a positive impact on the potential for growth in demand for residential properties and, consequently, appreciation. On the supply side, the imbalance is likely to widen as the housing stock in the state is already low today.

As much as construction companies speed up their projects, it does not look like they will be able to keep up with the growing demand. In the past decade, only about 950,000 new housing units have been built in the state of Florida, against 1.62 million in the 2000s and 1.26 million in the 1990s. To meet the increased demand in the 2020s, builders would have to break all records, but the opportunities for this are limited.

It so happens that the world is in a global post-pandemic, and there is a difficult political situation in a number of countries. Production chains are still disorganised, and there is a shortage of materials and skilled labour. However, even disregarding all these challenges, it is worth noting that the implementation of a new residential project often takes up to six years—from approving the project and location with local authorities to construction and delivery of keys.

Five Reasons to Buy an Apartment in Florida

4. Temporary slowdown before the price surge

High demand and low housing stock are nothing new for the Florida real estate market, which has already faced huge imbalances in recent years. However, the current microcycle in the market is attributed to the fact that the Federal Reserve System (the Fed) was recently forced to raise interest rates in order to contain the inflationary escalation. Rising interest rates pushed up mortgage prices, and demand for real estate somewhat slowed down. This explains what we talked about at the beginning of this article: right now may be an interesting time to enter the market for those investors who are ready to take advantage of a short-term slowdown in price growth.

It is unlikely that the Fed will maintain the upward trend in interest rates for a long time. As soon as inflation is under control, interest rates may fall, and along with that, the country’s real estate market will be stimulated again and prices will rise in its most sought-after locations—primarily in Florida.

5. Capital protection

It is worth noting the political and economic stability of the United States and the reliability of the Florida real estate market. It is profitable for nationals of many countries to invest in Florida housing, as this will allow them to move part of their assets beyond the influence of political forces in their home states. Today, an increase in turbulence in the political and economic fields can be seen around the world. Buying real estate in Florida is an investment in an asset that will always be in demand.

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