“The state is in an excellent position for next year,” says the Florida Realtors' outlook for Florida real estate in 2023. It highlights the appeal of the Sunshine State to retirees and its affordable housing. Top spots to buy include Jacksonville in Northeast Florida, Sarasota in the southwest and suburban areas throughout the state.
Strong position in 2023
The Florida real estate market is looking forward to a strong year, according to real estate agents in the state and economists. They base their optimism on two factors: population growth and a robust economy.
Although analysts expect fewer new residents in 2023, the Sunshine State will continue to appeal to a wide demographic range. Florida will also remain the most popular state for relocation within the US.
Appeal of affordability
House prices in Florida continued on their upward trend throughout 2022, but, despite the upticks, Florida real estate is still cheap compared with other parts of the US. Florida Realtors Chief Economist Brad O’Connor compares the Sunshine State with major cities in the Northeast and California and finds housing more affordable.
“That’s one of the reasons we have seen so many luxury homebuyers in other states tapping their equity and moving to Florida,” he said. A realtor from Pensacola agrees: “this is one of the enduring attractions of our market,” said Tiffany Maybin.
The Florida real estate magnet
As a result, property in the Sunshine State acts as a powerful magnet for buyers across all demographics. Retirees are one of the groups most attracted to Florida, and their most popular locations to buy real estate include Sarasota and Jacksonville. PWC recently ranked Jacksonville as one of the best places to buy property in the US.
“These spots will continue to see fast growth and a consistent flow of new buyers,” said Kristen Klepac from the tech relocation company moveBuddha.
The surge in remote working has also benefitted Florida real estate. Over the last few years, the state has seen an influx of buyers from California and the Midwest. Florida’s move into the technological, financial and health sectors has also drawn buyers from across the US.
On the international front, the Sunshine State will remain the top place to buy real estate in the country. O’Connor predicts a particularly strong inflow from Caribbean and Latin American buyers this year.
The steady line of buyers will continue throughout the year, despite fewer new residents. The Florida Office of Economic and Demographic Research recently predicted that the state will welcome around 800 new residents a day in 2023, slightly less than in 2022. However, Florida will still rank ahead of most states in population growth.
New trends in Florida property in 2023
The report also looks at expected trends this year. They include:
- A slowdown in transactions – higher mortgage rates could lead to fewer properties in Florida changing hands in 2023, according to O’Connor.
- Effective pricing – more expensive loans will also lead buyers to expect price adjustments. Logan Mohtashami from HousingWire advises sellers to price their homes effectively to meet these expectations.
- Growth in suburban areas – buyers with flexible work schedules may not mind a longer commute and look for homes in most distant suburban areas. Those with good schools and amenities will fare the best.
- Higher demand for single-family homes – according to Ken Johnson, Associate Dean at Florida Atlantic University, single-family homes on a lot will experience the most demand this year. He points to families relocating from high rises in cities as the principal market for this kind of Florida real estate.
(Source: Florida Realtors)