Not all experts are ready to share specific forecasts for 2023, but some conclusions about the past year are already feasible. For instance, Florida Realtors calculated that the value of residential properties in Florida increased by 17.27% over the past year, according to data from Zillow. This is the highest growth nationwide.
In December, the average house price in Florida was slightly below $405,000, which is more than $56,000 higher than in January 2022.
Ken Johnson, an expert in real estate economics and Dean of Graduate Program at the Florida Atlantic University, compiles the Beracha and Johnson Housing Market Ranking together with a colleague. According to this ranking, homes are currently the most overpriced in the Cape Coral – Fort Myers metropolitan area (by 69.29% compared to expectations based on historic prices).
Florida is home to 6 out of 10 most overpriced housing markets in the USA. Specifically, Deltona is in the 2nd place, Palm Bay, in the 4th, Tampa, in the 6th, Lakeland, in the 7th, and North Port is No. 10.
The situation in the home rental market is similar, according to the Waller, Weeks and Johnson Rental Index. The rents are the most overpriced in Cape Coral (by 17.85%), North Port, and Miami (including Palm Beach County).
Based on this data, Professor Johnson makes a conclusion that housing affordability remains extremely low in Florida for both purchase and rent. This situation is likely to continue in the nearest future due to the low inventory in the residential property market and the state’s growing population.