Over the past few years, the demand for real estate in Florida has been exceptionally high. Low interest rates and continuing migration to the state have boosted property sales. The average single-family home value in Florida rose consistently throughout 2022, starting at $374,000 and peaking in May and June. But what awaits the market in 2023?
Florida property market experts have compiled a list of the fastest growing regional real estate markets in the state. It includes cities where property is guaranteed to rise in price in 2023.
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The state of the Florida real estate market in 2023
Since the beginning of 2022, property prices have eased slightly in some areas amid rising interest rates. However, limited supply and an abundance of new residents have driven up the demand again. More than 41,000 New Yorkers have changed their driving licence to a Florida one in recent months, according to the state’s Department of Highway Safety and Motor Vehicles. Record numbers of California, Washington, Oregon, and Pennsylvania residents have decided to move to The Sunshine State.
Today, Florida has 22 million people. It is projected that the population will reach 25 million by 2032.
Despite the cooling of the real estate market in the country as a whole, Florida will likely remain a seller’s market for a long time to come. Washed by the waves of the Atlantic Ocean and the Gulf of Mexico, the peninsula sees more people moving in than any other state in the country.
According to local estate agents, the markets of two Florida cities, Tampa and Jacksonville, will be among the hottest markets in the US in the next five years. If you’re looking to invest your funds in houses or apartments in Florida, look at prestigious off-plan projects in Florida in these two cities to make sure you build wealth through property value appreciation.
In addition to Tampa and Jacksonville, experts name 10 more Florida locations where property prices are sure to increase in 2023.
Top 10 Florida locations in 2023
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Doral
Doral has grown nearly 260% since 2000 and has a median property price of $489,950. Located in Miami-Dade County, it is only five miles from Downtown Miami and close to Miami International Airport (MIA).
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North Port
The median property price in North Port has risen 14.7% year-on-year and reached $401,000. North Port is the only city in the state that has an entire state forest, 8,000 acres, within its boundaries.
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St. Cloud
St. Cloud continues to see prices rising as well, with an increase of 29.3% in 2022. An average house is now valued at $425,000. This Central Florida city is part of the Orlando–Kissimmee–Sanford metropolitan area and benefits from entertainment and theme park employers that welcomed tourists back in 2022.
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Homestead
An average house in Homestead is now valued at $425,400, up 28.5% from October 2021. About a third of the houses on the market are selling above the asking price. As both a Miami suburb and a major agricultural area, the location has a small-town feel with easy access to metro resources. It is surrounded by pristine nature. Everglades National Park is to the west, Biscayne National Park is to the east, and the Florida Keys is to the south of the city.
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Fort Myers
The house prices in Fort Myers also jumped during 2022, reaching a median value of $390,300, up 28.7% from 2021 to 2022. Together with the cities of Cape Coral, Fort Myers Beach, Bonita Springs, and Sanibel, this region is home to nearly 788,000 people. In 2022, Fort Myers saw a resurgence in tourism, providing a solid economic base for the market to keep growing.
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Port St. Lucie
Port St. Lucie became the 12th fastest growing city in the country in 2022, with a population now exceeding 200,000. Median property prices rose nearly 25% in 2022 to $409,000. The city is part of the Miami–Fort Lauderdale–Port St. Lucie statistical area, which has an estimated population of 6.83 million, and property prices here have huge potential for further growth.
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Cape Coral
An average house listed for sale in Cape Coral costs $431,000, up almost 28% from last year and almost $200,000 more than before the pandemic. Located in Lee County on the Gulf of Mexico, this city is the largest between Miami and Tampa. Cape Coral boasts over 400 miles of navigable waterways. This is more than any other city in the world, including Venice. Experts are sure that the cost of property here is far from its peak.
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Kissimmee
Kissimmee is 30 km south of Downtown Orlando and only 20 km from Disney World. Median single-family home prices are $385,000, up 31% over the past year. More than 40% of home sales in 2022 were above the average sales price.
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Orlando
This city also expects continued growth in 2023. Median property prices here have reached $338,500, which is a 23.8% increase over 2022. Located in the centre of the state’s third largest area, Orlando has over 300,000 residents and is one of the most visited cities in the world. Investing in local real estate guarantees the investor income and high liquidity of assets in the future.
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Palm Beach
It would be fair to say that Palm Beach is a magnificent city. Median property prices here have risen 44% year-on-year to a record $2.48 million—almost double what they were in 2019 and 2020. The city is located on the state’s east coast on a barrier island. Many locals use villas in Florida on this island as a second home. The average year-round population is less than 10,000, with the number more than doubling during the winter months. If your funds allow you to buy a Florida house in Palm Beach—you cannot imagine a better investment!
Buying real estate in the US is available to foreigners without any restrictions. Contact our experts via chat or phone for answers to any questions related to the market of real estate in Florida.