Florida has been a hotbed for real estate development, attracting buyers from all over the country. With low-interest rates and a steady stream of new residents, the market has experienced significant growth. As we look towards 2023, it's essential to understand the fastest-growing real estate markets in Florida.
2023 Florida Real Estate Market Trends
As of October 2022, the median home price in Florida stood at $402,000, a testament to the rising demand for properties in the state. Limited supply and a surge in new residents contributed to this significant increase. In fact, Florida now has 22 million residents, with projections expecting the population to reach nearly 25 million by 2032.
Reflecting on Our 2022 Predictions
Let's take a moment to reflect on our predictions for the hottest real estate markets in Florida in 2022.
Fort Myers
Fort Myers lived up to our expectations as the fastest-growing city in 2022. With a population of over 92,200 residents and the addition of 12,000 new jobs, it ranked sixth on the list of fastest-growing cities in the country.
Cape Coral
Cape Coral also experienced solid growth, adding 28,800 residents and bringing the total population to 910,000 in the metro area.
Lakeland
The Lakeland metro area saw a nearly 2% increase in population, reaching 358,000 residents.
North Port
North Port, located in Sarasota County, grew by 5.5%, making it home to around 80,000 residents. It ranked ninth on the list of fastest-growing cities in the U.S.
Sarasota
The Sarasota-Bradenton area added 7,000 new residents, with a growth rate just shy of 1% in 2022.
The Fastest-Growing Florida Real Estate Markets for 2023
Despite a cooling in the national real estate market, Florida continues to be a seller's market. More people are moving to Florida than any other state in the country. According to Zillow and Redfin, two cities in Florida are projected to be the hottest markets in the country: Tampa and Jacksonville.
Doral
Doral has experienced remarkable growth since 2000, with a nearly 260% increase. The median home price now stands at $489,950. Located in the Miami-Dade County area, it offers proximity to downtown Miami and the Miami International Airport (MIA).
North Port
North Port has seen a 14.7% year-over-year increase in median home prices, reaching $401,000. It's the only city in Florida that houses an entire state forest within its limits, covering a vast 8,000 acres.
St. Cloud
St. Cloud witnessed a 29.3% increase in home prices in 2022, with the typical home now valued at $425,000. As part of the Orlando-Kissimmee metro area, it benefits from the region's entertainment and theme park industry.
Homestead
The typical home in Homestead is now valued at $425,400, marking a 28.5% increase from October 2021. Homestead offers both a small-town feel and easy access to metropolitan resources. Surrounded by natural wonders like Everglades National Park and Biscayne National Park, it's an attractive location for homebuyers.
Fort Myers
Fort Myers continues to show strong growth, with home values reaching a typical value of $390,300, a 28.7% increase from 2021. The metro area, encompassing Fort Myers, Cape Coral, Bonita Springs, and Sanibel, is pushing towards a population of 788,000. The resurgence of tourism in 2022 has provided a robust economic foundation for further growth.
Port St. Lucie
Port St. Lucie was the 12th fastest-growing city in the country in 2022, with a population exceeding 200,000. Median home prices jumped almost 25% to $409,000. It is part of the Miami-Fort Lauderdale metro area, which boasts an estimated population of 6.83 million.
Cape Coral
A typical home in Cape Coral now sells for $431,000, reflecting a nearly 28% year-over-year increase and a significant jump from pre-pandemic prices. With its extensive network of navigable waters spanning over 400 miles, Cape Coral is a unique waterfront community.
Kissimmee
Located just south of downtown Orlando and mere miles away from Walt Disney World, Kissimmee has seen a 31% increase in typical home prices over the past year, reaching $385,000. More than 40% of home sales in 2022 were above the list price, showcasing the high demand.
Orlando
Alongside St. Cloud and Kissimmee, Orlando is set for continued growth in 2023. Median home prices in Orlando hover around $338,500, with a 23.8% increase over the past year. As the center of the state's third-largest metro area, Orlando has become a thriving city with over 300,000 residents and a top tourist destination.
Palm Beach
Palm Beach oozes luxury, with typical home prices soaring by 44% year over year. Record-breaking prices of $2.48 million make it a haven for second-home buyers. With a year-round population of fewer than 10,000, the numbers more than double during the winter months.
A Promising Future for Real Estate in Florida
While the market may have cooled slightly from its peak in 2022, home prices in Florida continue to rise. With a constant influx of new residents, the Florida real estate market is expected to remain vibrant and active. If you're considering a career as a real estate agent in Florida, Aceable offers a Florida Real Estate Commission (FREC) approved pre-license course to help you become licensed and embark on a successful career.
Updated: December 21, 2022
