A recent analysis has appraised property values in the US and revealed that Florida real estate ranks second nationally. The Sunshine State has overtaken New Year State this year and now stands behind just California. In metro terms, Miami and Tampa sit in 5th and 18th positions, respectively, as the most valuable in the US.
Florida real estate more valuable than New York
A Zillow report recently appraised all property in the US and found that its total value almost reached US$52 trillion. Furthermore, over the last year, its worth has increased by US$2.6 million, the highest ever and 49% more than in 2019.
The table below shows the ascending value of US real estate since 2017, with a particular surge since 2021.
As a result of the latest rise, Florida real estate now ranks as the second most valuable in the country. It has leapfrogged over New York State, now in third place. California stands at the top of the table, with real estate valued at over US$10 trillion, almost a fifth of the US total.
Miami and Tampa most valuable metros in Florida
In metro terms, the Zillow report places Miami in fifth position nationally, with a real estate value of US$1,269.8 billion. Real estate in Miami-Fort Lauderdale has surged in value by 8.6% since June 2022.
Consequently, Miami has entered the top five most valuable metros in the US, replacing Washington DC. The other four positions – New York, Los Angeles, San Francisco and Boston – remain unchanged in 2023 as has been the case since 2018.
Tampa is the other Florida metro to feature in the nation’s top 20 and stands in 18th position. Property in this metro is worth US$521.1 billion, 3.7% more than 15 months ago.
Sunshine State metros gain the most value in the US
Florida real estate has risen consistently in value since the pandemic. As a result, four metros in the Sunshine State stand in the top six markets that most increased in value.
Property in Tampa has gone up by 88.9% in value since 2020, with Miami real estate close behind with an uptick of 86.6%. In Jacksonville, property values have risen by 82.4% and in Orlando, by 72.3%.
According to Zillow, two factors lie behind the sharp rise in the value of Florida real estate. The state’s consistently high population growth is driving demand for property and boosting demand for new homes.
Reason for the rise in house values
Analysts attribute the uptick to the rise in house prices and to new construction. Property prices in the US have risen consistently since 2020 despite higher mortgage rates pricing many would-be buyers out of the market. And low inventory levels have increased demand for new homes in Florida.
“A steady flow of new homes hit the market this spring and summer, helping chip away at the deep inventory deficit and boosting the total value of the market,” said Orphe Divounguy, Senior Economist at Zillow.
The report refers to new construction as “the powerhouse” behind the uptick in real estate values and predicts a continuation of the trend. Zillow forecasts that sales of new homes in the US “should make up a bigger piece of the home sales pie moving forward”.