Florida’s real estate landscape is as diverse and dynamic as the state itself. From sun-kissed beaches to bustling metropolitan areas, the Sunshine State continues to attract a myriad of real estate investors and homebuyers. At Malve Capital, we continue to observe the evolving trends and opportunities in this vibrant market.
Why Florida’s Real Estate Market is Booming
The Florida real estate market showcases resilience and growth, despite national trends indicating a cooling market. Florida’s attractiveness lies in its robust job market, diverse economic sectors, and quality of life that continues to draw people from across the country and beyond. As we move into 2024, we anticipate a more balanced market, similar to the traditional patterns observed in 2018-2019, with a healthy equilibrium between supply and demand.
Spotlight on Key Markets
According to Florida Realtors, the following markets continue to show population and job growth, contributing to a significant increase in home values.
Fort Myers
Fort Myers has shown remarkable growth, both in population and the job sector. As a result, home values jumped, reaching an average of $390,300, a 28.7 percent increase from the previous year. This growth, coupled with a resurgence in tourism, provides a solid foundation for continued real estate development.
Cape Coral
Cape Coral is another Florida city experiencing significant growth. The metro area’s population rose to around 910,000, and the typical home price in Cape Coral now stands at $431,000, up nearly 28 percent year over year. This growth is propelled by the city’s unique feature of having over 400 miles of navigable waters.
Orlando
Orlando, the “Theme Park Capital of the World,” is much more than a tourist destination. The city has seen a significant (4.2% )increase in private-sector jobs over the past year. This economic growth, including contributions from technology, healthcare, and aerospace industries, directly drives demand for housing, presenting great opportunities for real estate investors.
Miami
Miami is known for its luxury real estate and high-end living. The median home price as of May 2023 stood at $560,000, a 1.8 percent increase from the previous year. With an unemployment rate lower than the national average, Miami’s stable economy supports a robust real estate market, attractive to both domestic and international investors.
Panama City
Panama City, located on the beautiful Emerald Coast, offers a mix of small-town charm and a thriving real estate market. The city has been experiencing an impressive annual growth rate, with the median home price rising by 23.4 percent compared to last year. Panama City’s vibrant culture and stunning beaches make it an attractive location for both residents and investors.
Gainesville
Gainesville, home to the University of Florida, presents unique opportunities for real estate investors with its constant demand for housing due to the significant student population. The city has seen a surge in home prices from the previous year, with the median home price reaching $305K in May 2023.
Jacksonville
Jacksonville, with its high in-migration and population growth, is a rising star in Florida’s real estate market. The city has experienced a 23.4% increase in single-family home values over the year ending April 2022. Furthermore, over 41.5% of these homes were sold above their asking price, indicating a highly competitive market environment.
The Bottom Line
While the market may be adjusting to a more balanced state compared to the frenzied pace of the past couple of years, the underlying strengths of these regions continue to make them attractive for investment. Whether you’re a seasoned investor or just starting, these markets provide a variety of options to suit different investment strategies.
At Malve Capital, we believe in the potential of Florida’s real estate market and are here to guide you through every step of your investment journey. Contact us today to explore how you can grow your real estate portfolio.