Florida remains one of the most popular US states. In the past year alone, the region's population has increased by more than 300,000. This makes the state's housing stock in demand among those planning to move for permanent residence and those considering it as an investment. It is still possible to buy real estate in Florida profitably, although houses for sale in Hollywood regularly rise. Let's look at why it pays to invest in the state's housing stock and why you should consider it a place to move.
Key benefits of Florida
The main, but far from the only advantage of the state, called sunny, is comfortable climatic conditions. Winter in the region in its classical manifestation is absent. Even in the coldest months, the temperature does not fall below +20 degrees. The sun shines more than 300 days a year. You can remember slush and dirt. There are other advantages of the state.
Attractive property value
In September 2022, analysts indicated the average housing price in Florida. It is 385 thousand dollars. If you compare this figure with sales offers in New York or Washington, you can see the availability of real estate. Although in Florida, it is essential to consider that the cost of an apartment or house is directly related to the area and location of the property. Luxury villas in Miami at a price of several tens of millions of dollars are not uncommon.
Developed infrastructure
Florida has a high quality of life. The state is among the top leaders in the quality of education. Medicine is at the same high level. Not only popular resort areas are developed, but also large industrial cities where you can find everything you need for life.
Enchanted Point in Miami, Florida by SDH Studio Architecture + Design. Image © David Hernandez
Why you should invest in Florida real estate
Foreign real estate allows not only to save money from inflation but also to increase it. Reasons for investment include:
1. Capitalization of the cost of housing. Real estate prices are regularly growing; in 2022 alone, the number of areas will increase by 23%. If the need arises, you can resell the apartments for a higher price.
2. Regular increase in rent. In 2022 in Miami, it reached 37%; in Tampa, the rent increased by more than 34%. In other state cities, the figures are lower, but prices are still rising. Foreign real estate allows you to receive a stable passive income from renting.
The market offers a fairly wide selection of housing of diverse price categories. You can find both budget objects and premium-class houses. It should be noted that the demand for real estate in Florida is consistently high. Therefore, resale is fine.
Florida real estate market analytics figures at the beginning of 2023
The main difficulty buyers face the need for more supply. The best houses are quickly disappearing from the market. In percentage terms, the figures at the end of the first quarter of 2022 compared to the same period in 2021 are as follows:
the average sales price increased by 21.3% and reached $385,000;
the average time to sell reached 53 days, down 17.2%.
Mortgage loan rates have begun to increase, which may contribute to a slowdown in real estate prices.
Florida housing market predictions for 2023
Experts predict that in 2023 the current situation will continue. In general, there are several main trends that analysts predict:
1. An increase in mortgage rates. This may contribute to a decrease in demand since not all buyers are ready to bear additional costs in the form of interest to banks. Such an approach will lower prices, increasing sales from those who purchase housing for cash.
2. Population growth. The housing supply has not kept pace with internal migration to Florida for a long time. The gap in supply and demand contributes to higher prices. This factor directly affects the number of sales, as buyers can only sometimes afford the desired object. Experts note that this is not negative for the market; the number of offers per house will decrease, but this will not prevent the seller from selling it.
3. Increased demand for affordable housing. You can still find one in Florida.
Any forecasts may have an error, so it is impossible to predict reliably what will happen to the market in the future.
Florida real estate investment prospects
Experts note that, in the foreseeable future, housing prices will not fall. This is largely due to affordable mortgage rates and regular population growth. There is a high probability of a reduction in proposals, especially in the coastal zone on the first line, due to the need for more built complexes. Therefore, it is more profitable to decide to invest. You can get acquainted with the current sales offers on the official website Florida.Realestate.
