Current Trends in Florida Real Estate

Florida has long been a popular destination for retirees and vacationers, but in recent years, it has also become a hot spot for real estate investors and homebuyers. The Florida residential real estate market has been booming, with strong demand and limited supply driving up prices and creating a competitive market. In this blog post, we’ll explore some of the current trends in Florida residential real estate.

1. Limited inventory

One of the key trends in Florida residential real estate is the limited inventory of available homes. Many homeowners are choosing to hold onto their properties, either because they are waiting for prices to rise even further or because they are concerned about finding a new home in such a competitive market. This has led to a shortage of available homes, particularly in popular areas like Miami, Orlando, and Tampa.

2. Rising prices

Limited inventory and high demand have driven up home prices across Florida. According to Zillow, the median home value in Florida was $301,000 as of February 2023, an increase of 21.5% from the previous year. In some areas, like Miami and Naples, prices have increased even more rapidly. This has made it more difficult for first-time homebuyers to enter the market, as well as for investors seeking opportunities for a good return on investment.

3. Strong demand

Despite high prices, demand for Florida residential real estate remains strong. Many out-of-state buyers are drawn to the state’s warm climate, beautiful beaches, and favorable tax environment. Additionally, many people have been reevaluating their living situations in light of the COVID-19 pandemic and are seeking more space, both inside and outside the home. This has led to increased interest in larger homes with outdoor spaces in suburbs and rural areas.

4. Luxury market

Florida’s luxury real estate market has also been thriving, particularly in areas like Miami Beach and Palm Beach. High-end buyers are seeking properties with amenities like waterfront views, private pools, and smart home technology, and are willing to pay top dollar for these features. This has led to a surge in luxury development and renovation projects across the state.

5. Short-term rentals

Finally, short-term rentals have become increasingly popular in Florida residential real estate, particularly in vacation destinations like Orlando and Miami. Platforms like Airbnb and Vrbo have made it easy for homeowners to rent out their properties to tourists, and many investors are purchasing homes with the intention of using them as short-term rentals. While this has created new opportunities for income generation, it has also raised concerns about the impact on the rental market,. Some cities and counties try to ban the use of airbnb, but this seems to work best in private organisations like HOAs. 

Central Coast Realty is here to help you navigate the FL residential market, whether for your own home or if you’re interested in investment properties. Call us with questions!

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