Florida
has one of the hottest real estate markets in the nation, thanks to a growing job market, no state income tax, gorgeous beaches, and year-round pleasant weather. But as home prices soar, inventories are declining and homes are going off the market fast.From California
to New York
, thousands of people from across the United States have moved all the way down to sunny Florida in the last year. The state is known to be relatively affordable compared to other populous states—but with home prices increasing rapidly, figuring out the recent Florida real estate market can get confusing very quickly. Here to explain Florida’s real estate market is Jerry
, the top-rated super app
that saves you money on car insurance
. We’ll take a closer look at the current housing market, population growth, job market, and the renters’ market in the Sunshine State. RECOMMENDEDNo spam or unwanted phone calls · No long forms
Florida housing market
The Florida housing market has been booming since 2021. However, homebuyers are currently dealing with rising interest rates, competitive offers, and a low inventory of available homes. Not to mention—the number of buyers paying for their new homes in cash has gone up by almost half.
So why are people still moving to the Sunshine State in record numbers? Well, the actual sunshine for one thing! Factors like better weather conditions,relatively affordable cost of living,lower taxes, and plenty of outdoor recreation contribute to an excellent quality of life that is almost unmatched anywhere else in the nation.
According to Zillow, the median home value in Florida is currently $367,175. That’s a 31.2% increase in the last year! Here are some of the housing markets in a few major Florida cities.
Jacksonville
Medium home value: $288,061
Home value increase over year: 29.2%
Jacksonville
is the 12th largest city in the United States—and it just keeps growing, as 100,000 new residents have moved to the area in the last ten years! The Jacksonville real estate market is red-hot right now, with homes moving fast and staying on the market for about 54 days on average. The growing city is an attractive choice for many buyers who are seeking a more suburban lifestyle compared to other busier urban cities on this list. It’s also very affordable with the cost of living at 7% below the national average.
Another reason so many people are migrating here? Jacksonville’s job growth is holding strong and actually grew by 2% last year, according to the U.S. Bureau of Labor Statistics
. Miami
Medium home value: $492,246
Home value increase over year: 22.9%
Like the rest of the state, demands for Miami
real estate are at an all-time high. In fact, March was Miami-Dade County’s third highest sales month in history, according to the Miami Association of Realtors. As home prices continue to rise, the Magic City has become one of the least affordable housing markets in the nation. Miami certainly is magical due to its diverse culture, pristine white-sand beaches, and great dining options but all that magic unfortunately comes at a high price. The lack of housing options affect local buyers as interest rates increase across the board, reaching about 5% for a 30-year mortgage. While wages remain stagnant, job growth has increased by 5.6%
in Miami. Tampa
Medium home value: $387,130
Home value increase over year: 33.2%
Tampa
currently holds the top spot for the hottest housing market
in 2022 so far. If you’re looking for a home in the Tampa Bay area, you need to move lightning fast as homes tend to stay on the market for about 12 days on average. Like most of Florida, home options are scarce which is only driving up prices. Why is the Tampa housing market so hot right now? The 3rd most populous city in Florida has a flourishing job market that increased by 7.2% as of September 2021. This only adds fuel to the recent housing demand in the beautiful Tampa Bay area.
Orlando
Medium home value: $354,259
Home value increase over year: 27.5%
Who doesn’t want to live near Disney World and Universal Orlando? Orlando
is another attractive option for potential homebuyers who are trying to escape the high cost of living in crowded metropolitan cities across the country. But this doesn’t always bode well for local buyers as the inventory gets tighter but the home prices keep going up. Orlando is a fast-growing city, warmly embracing about 1,000 new residents a week
. The current unemployment rate is down to 3.4% while the city gained the most private sector jobs—with leisure and hospitality taking the lead—of all metropolitan areas in the Sunshine State as of February 2022
. That’s a 6.4% increase over the last year! Florida population growth
After California and Texas
, Florida is the third largest state by population in the United States. Since 2010, the Sunshine State has gained over 2.7 million new residents and currently has a population of 21,781,128, according to the U.S. Census Bureau. Here are the current largest metropolitan areas in Florida:
Jacksonville: 1.5 million residents
Miami-Fort Lauderdale-West Palm Beach: 6.2 million residents
Orlando-Kissimmee-Sanford: 2.5 million residents
Tampa-St. Petersburg-Clearwater: 3.1 million residents
Florida is one of the fastest growing states in the nation, growing by 14.6% over the decade. The state actually projects this current trend to continue upward, anticipating about 845 new residents
everyday through April 2025. Florida job market
Just like the housing market, the Florida job market
is also booming—which only drives up the need for housing even more! The Sunshine State created 497,800 jobs since last year, meaning the job growth has increased by 5.7% compared to the national job growth rate of 4.5%. The unemployment rate in Florida is looking great too as it's currently down to just 3.2%. And thankfully, job growth has spread evenly throughout the state with all major cities, like the ones listed above, increasingly adding new jobs since last year.
What Florida cities have the best job market right now? Jacksonville and Tampa ranked as the two best cities for job seekers in 2021. Some of the best industries to get into right now in the state with signs of growth are leisure and hospitality, information and technology, and professional and business services.
Florida renters’ market
Unfortunately, the Florida real estate market is not the only one to see low inventory rates and rising prices in the Sunshine State. Rent is also increasing at an alarming rate as some areas are seeing a 24% increase in rental prices in just a matter of weeks. Right now, 34% of Florida housing units are occupied by renters.
Here are the medium rental prices in a few major Florida cities for a one-bedroom apartment:
The competition in the Florida renters’ market is hotter than ever as newcomers from across the country keep pouring into the state—leaving local residents with less than desirable renting options. The recent influx of new residents from states like New York and California over the years has also allowed many Florida landlords to raise rental prices to ridiculously costly heights.
The most expensive Florida cities to rent in right now include Key West
, Surfside, and Miami. How to find the best homeowners insurance in Florida
No matter where you decide to buy real estate in Florida, it’s important to obtain the best homeowners insurance to protect your new investment. And comparison super app Jerry
knows a thing or two about finding the best rates around! Here’s how it works: just download the Jerry app, enter your information, and in less than one minute we’ll provide you with multiple customized rates from top insurance providers. Jerry’s team of expert agents will handle all the paperwork, including helping you cancel your old policy. So all you have to do is sit back and enjoy a relaxing day on the beach in Florida.
How much can you save? On average, our customers save over $800 per year on insurance when they switch providers with Jerry!
“I had limited time to find a new insurance plan in Florida, so I tried Jerry
. My experience was personalized and professional, and they found me a plan that fits my portfolio. You should give them a try.” —Valencia T.
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