In 2023, Florida remains one of the most sought-after US states among real estate buyers from around the world. Real estate in Florida is on average cheaper than in California or New York. We will tell you how much local apartments and villas cost and where in the state it is better to buy housing.
Content:
- Real estate in the USA: reasons for price changes
- TOP 5 best locations in Florida
- What can you buy in Florida in 2023?
- How do mortgage payments and monthly incomes of US residents correlate?
Real estate in the USA: reasons for price changes
Over the past 2 years, housing prices in the United States have been growing at a rapid pace.
Median property prices in the United States
By the end of 2021, the median cost of single-family properties in the United States reached $346,900. According to the National Association of Realtors, this figure was the highest in the entire history of observations since 1999. Its growth relative to the same indicator for 2020 was 16.9%. In total, over 16 million properties were sold during the year: an increase in the number of transactions was 8.5% compared to the previous year. In 2022, the price growth continued, but by Q4 the market began to slow down. At the end of the year, the median price of single-family properties was $392,000.
Market forecasts for 2023
It is expected that the downward price adjustment will continue in 2023 and by the end of the year the median house price will stop at around $380,000. Apartments in the United States have also become more expensive, and the average cost of renting them has increased significantly. This figure in many American cities exceeded $2,000.
Reasons for Florida Housing Boom
According to experts, houses for sale in Florida and other southern states grew in price faster than the national average against the background of the coronavirus pandemic in 2020–2021. Quarantine restrictions have forced people to appreciate their own homes with plots and a warm climate.
After the outbreak of the epidemic, US credit institutions began issuing mortgages at reduced rates. It was necessary to support the country's economy.
In addition, with the outbreak of the epidemic, experts started talking about the growth of inflation. Therefore, US citizens began to invest in real estate in order to save their savings.
The supply did not keep up with the growing demand. As throughout the country, construction of new facilities has decreased in Florida amid the pandemic. This also affected the cost of housing.
TOP 5 best locations in Florida
In addition to the super-popular among investors and tourists of Greater Miami, Tampa and Orlando, Florida has a number of other local real estate markets with great potential. Let's talk about the main ones.
Jacksonville
The city is the most populous in the state. About one million people live here. Jacksonville is located in the northeastern part of the state, near the coast of the Atlantic Ocean. The nearest airport can be reached by car in about half an hour.
In addition to protected areas, green areas and a zoo in Jacksonville, there are also beaches, an art museum, shopping and entertainment complexes, cafes and restaurants.
There are more than 20 medical clinics in the locality. There are 600 private and 190 public schools, colleges and universities in Jacksonville and its district.
- The ratio of the median cost of housing in the city and the average annual income of a family living in Jacksonville is as follows: $174,000 and $55,000.
- The ratio of the average annual family income and rent: $55,000 and $13,000.
- 76% of the city's residents have their own housing in Jacksonville.
St. Petersburg
The city is located in the central part of Florida, on the coast of the Gulf of Mexico, and is connected by bridges across the bay with a large metropolis − Tampa. It has a population of almost 266,000 people.
There are several small airports operating near the settlement. Half an hour away by car, near Tampa and St. Pete Clearwater, there are international airports.
St. Petersburg has a famous coastal area with many cafes and restaurants, the Salvador Dali Museum, piers, beaches, and nature trails.
The city has more than 30 medical clinics, 45 public schools and more than 150 private secondary educational institutions and colleges.
- The ratio of the median value of residential real estate in St. Petersburg to the average annual family income: $205,000 and $57,000.
- The ratio of average annual income and rent: $57,000 and $13,000.
- 61% of local residents have their own houses or apartments in the city.
Cape Coral
Cape Coral is located in the southwest of the state, near the Gulf of Mexico. Almost 205,000 people live here.
Cape Coral International Airport is 30 minutes away by car.
There are many squares in the settlement, there is a nature reserve, and special routes running through various natural objects are arranged.
Cape Coral has 56 private and 27 public schools and a technical college.
- The ratio of the median cost of housing and the average annual family income: $230,000 and $61,000.
- The ratio of average annual income and rent: $61,000 and $15,000.
- 74.5% of the city's residents have their own apartments and houses in Cape Coral.
Palm Bay
This small town on the Atlantic coast of Florida, in the central part of the state, is home to 116,000 people.
The nearest airport to Palm Bay is just 10 minutes away by car.
Palm Bay has parks, beaches, ecological trails, a nature reserve and many beaches.
There are 25 public and 45 private schools. There are medical clinics in the locality. In the neighboring city of Melbourne, which is located 7 kilometers away, a regional medical complex has been opened.
- The ratio of the median value of residential properties and the average annual family income: $155,000 and $51,000.
- The ratio of average annual income and rent: $51,000 and $13,000.
- 75% of citizens have their own villas and apartments in Palm Bay.
Palm Coast
From Palm Coast, located off the Atlantic coast of Florida, closer to the north of the state, Jacksonville can be reached in one hour. The settlement has a population of 90,000 people.
The international airport is located 45 minutes by car from the city.
Palm Coast has a lot of green areas, ecological trails, and golf clubs. Nature reserves and famous beaches, including Daytona Beach, are located nearby. There are 10 public schools and 25 private secondary schools and colleges.
- The ratio of the median cost of housing and the average annual family income: $209,000 and $54,000.
- The ratio of average annual income and rent: $54,000 and $16,000.
- 74.3% of residents have their own villas or apartments.
What can you buy in Florida in 2023?
Here are examples of residential properties that are for sale in Florida for March 2023:
- A 310 m2 condominium with 3 bedrooms and 3 bathrooms in St. Petersburg costs $4,750,000.
- A 52 m2 condominium with 1 bedroom and 1 bathroom in St. Petersburg costs $99,450.
- A 141 m2 house with 2 bedrooms and 1 bathroom in St. Petersburg costs $334,900.
- A villa with 4 bedrooms and 3 bathrooms in Cape Coral is on sale for $599,000.
- A 95 m2 condominium with 2 bedrooms and 2 bathrooms in Cape Coral can be purchased for $200,000.
- A 122 m2 condo with 2 bedrooms and 2 bathrooms in Cape Coral costs $235,000.
- A 201 m2 villa with 3 bedrooms and 2 bathrooms in Cape Coral costs $649,950.
- A 200 m2 condominium with 3 bedrooms and 3 bathrooms in Palm Coast is for sale for $874,000.
- A 316 m2 condominium with 4 bedrooms and 4 bathrooms in Palm Coast costs $825,000.
- A 96 m2 condominium with 2 bedrooms and 2 bathrooms in Palm Bay can be purchased for $187,000.
- A 452 m2 house with 5 bedrooms and 3 bathrooms in Palm Bay can be purchased for $1,000,000.
The cost of residential properties varies depending on their area and the size of the house plot, if we are talking about a villa. In addition, prices are influenced by the level of development of the area in which the property is located, the date of commissioning, the view from the window and other factors. Secondary apartments in Florida are on average cheaper than similar apartments in development projects in Florida.
How do mortgage payments and monthly incomes of US residents correlate?
According to experts, the most difficult housing to acquire in the United States in 2023 is the state of Hawaii. Monthly mortgage payments here account for more than 60% of the average monthly income of local residents.
Relatively inexpensive real estate is located in West Virginia. Monthly mortgage payments here account for approximately 16% of the median monthly income of residents of the region.
How much do Florida residents pay on their mortgages?
At the beginning of 2023, the median asking price of a single-family property is $400,000. Monthly mortgage payments in Florida are equal to 33.4% of the average monthly income of residents of the region.
Will properties in Florida get cheaper: yes and no
Experts believe that, unlike other regions of the country, Florida should not expect a decline in real estate prices in 2023. However, the price growth will slow down and will be about 0.8% by the end of the year. This is lower than inflation, which in the US in recent years has been kept at the level of 6.4−6.5% per year.