The median price of a home in Florida is around $382,000.
This means that the median price of a home in Florida is actually a bit below the national median home price of $385,000. While this makes property in Florida a great investment, the cost of living is also incredibly attractive. This makes Florida the perfect place to invest and live!
While property prices have gone up in the last few years, the Florida housing market shows no signs of slowing down anytime soon. Whether you’re looking to invest in a rental property, a vacation home, or move to Florida entirely, now is the best time to invest.
Interested in learning about the housing market in Florida? You’re in the right place. Here’s everything you need to know about the Florida housing market in 2023.
Why Invest In Real Estate?
Real estate is one of the most secure investments you can make. While stocks and bonds can also be relatively safe investments, they have the potential to decrease in value overnight. In this way, investing in real estate is seen as a physical asset that still provides utility even if the price fluctuates over time.
While stocks can sometimes give you dividends, you can earn a stable, passive income from real estate. This allows you to create an additional source of income while keeping the principal investment relatively secure. There are also tons of tax breaks and deductions that can help make investing in a rental property more affordable for you.
Housing Market Predictions for 2023 in Florida
Economists around the country agree that we are currently in a recession. Economic activity has slowed down around the country, with property prices expected to drop slightly over the next year. However, economists also agree that Florida is completely exempt from this.
This is because Florida property prices have continued to grow even though the general economy has taken a beating. Many attribute this to the fact that people are still flocking to Florida to take advantage of the tax breaks and lower cost of living. In this way, the demand for property in Florida has not slowed down at all.
Since moving to Florida comes with real financial benefits, many expect the property market to continue to grow in 2023. The average cost of a home in the United States is expected to decrease in the next year, meaning that the average property price in Florida will be higher. This makes it the perfect time to invest in local real estate.
The Florida Housing Market
The Florida housing market has seen a massive growth spike in the last few years. This is because people are moving to Florida at record rates for a better quality of life. While the different cities in Florida can differ greatly in price, the average home in the state is still below the national average at just $382,000.
The average cost of a home in Miami will set you back around $442,258 while the same home in Orlando will only cost you $305,622. This is why it’s important to visit a few cities in Florida to see which area you would like to invest in. Cities like Miami and Orlando may be great for vacation homes while Tampa and Jacksonville are better cities to live and raise a family in.
Investment Property in 2023
If you’re thinking of investing in a rental property, it can be beneficial to look at the rate of return you can make on your investment before making any major decisions. This rate can be calculated easily by looking at the average rental price in that area. The average apartment rental in Miami is around $2,227 while the same apartment in Orlando will only make you around $1,181.
This makes Miami a better city to invest in rental property compared to other cities in Florida. However, these prices have been on the rise for the last few years. People have consistently been moving to Florida, with the pandemic in 2020 speeding things up as well.
Affordability in Florida
As mentioned above, the housing market in Florida is slightly below the national average. However, the biggest savings people can expect by moving to Florida is the fact that the state does not collect personal income tax. This means that you can save thousands of dollars every year by just moving to Florida.
Florida is one of a few states in the country that generates enough income from the commercial sector that they don’t need to collect personal income tax.
While the state does not collect personal income tax, the cost of living in Florida is also relatively cheap. This means that many other expenses are lower than the national average, allowing you to live a better lifestyle in Florida than you would in many other parts of the country.
The average cost of living in Florida is around $43,615 per year. This breaks down to around $9,255 for housing, $6,675 for health care, $3,693 for food, $580 for gas and energy, and around $23,413 for other personal expenses. This means that the average person spends around $3,635 per month living in Florida.
While these are the averages, many things are incredibly affordable in Florida. This includes housing, health care, and general day-to-day expenses. However, expenses such as utilities, groceries, and transportation are only 2% to 5% more expensive than the rest of the country.
The cost of living has been rising around the country, leading to more people making the move to more affordable cities. This has been one of the biggest factors driving demand for local real estate in Florida.
Factors Driving Demand for Florida Real Estate
When it comes to the national real estate market, no state seems to be doing as well as Florida. The state of Florida has been one of the most successful states for a long time, but the current economic climate is driving more people to invest in the local real estate market.
Here are a few reasons why the demand for Florida real estate has been and is predicted to continue to grow in 2023.
1. Amazing Weather
It’s no surprise that Florida has some of the best weather in the country. With over 200 days of sunshine every year, Florida is the perfect place to be throughout the calendar. While this does make it a great vacation destination, it also makes it a great place to live and raise a family.
The summers in Florida are quite humid, but you’ll never need more than a simple sweater during winter. This makes it ideal for those who hate the rain and snow that typically makes winter unbearable. Average temperatures throughout the state range from 70 to 80 degrees during winter, with summers reaching around 90 degrees.
2. Cultural Diversity
Florida is an incredibly diverse state. The state is filled with people from different parts of the world, with many people moving from various parts of the country to Florida as well. This means that you’ll be able to hear tons of languages and taste foods from all over the world in Florida.
This diversity also showcases the acceptance of different cultures in the state. This makes people feel at home when they make the move to Florida. Whether you’re coming to visit or moving to the state permanently, Floridians are some of the most friendly and welcoming people in the entire country.
3. The Vacation Lifestyle
Florida is known to be one of the most comfortable and relaxing states in the country. While the state is still incredibly successful in business and trade, travel is its biggest attraction. Florida is home to a few major theme parks, with the most popular one being Disney World.
However, the vacation vibe can be felt throughout the state. Whether you’re having coffee or taking a walk down the road, the lifestyle in Florida is significantly different from the rest of the country. This makes it the perfect place to relax, unwind, and raise a family in peace.
Different Kinds of Florida Property
Florida has a few major metropolitan cities and a few smaller towns as well. This means that the real estate market in Florida is one of the most diverse in the entire country.
Whether you’re looking to invest in an apartment, condo, secure estate, or a home, Florida has it all. This diversification of real estate helps the local housing market to continue to grow.
Moving To Florida
If you’re thinking to move to Florida permanently, there are tons of options for you. Florida is home to gated communities and secure estates for those who want a bit more convenience and privacy. There are also tons of retirement villages for those who want to sit back and enjoy retirement in the Florida sun.
Cities like Tampa offer a wide range of real estate for those who want to make the move to Florida. This city is smaller than Miami and is the perfect place to raise a family. Home to tons of small businesses, parks, and schools, Tampa has everything you’ll ever need.
Florida Vacation Homes
While Florida is home to more people than ever before, the state also welcomes visitors from around the world. This makes it the perfect place to invest in rental property, especially if you plan to rent on a short-term basis. This means that you can buy a property and list it on sites such as Airbnb to generate an additional source of income.
Florida is also home to thousands of apartments and condos. These apartments, especially in Miami, can allow you to generate thousands of dollars every month in rent. As mentioned above, the average cost of an apartment in Miami is over $2,000.
This makes it one of the best investments you could possibly make.
The Best Places in Florida To Invest In
As mentioned before, there are tons of different cities in Florida to invest in. While the most popular options are Miami and Tampa, there are a few other places that promise even better returns on your investment. Here are the top three options.
1. Palms Springs, Florida
The average property price in Palms Springs is only $205,262. This is significantly below the state average and makes it the perfect place to invest in Florida. In addition to this, you can expect to generate around $1,414 per month with a rental property.
This works out to a return of around 8.2% per year on your investment.
2. Margate, Florida
The average property price in Margate is around $225,000. While this is more than property in Palms Springs, it’s still below the state and national averages. A typical rental property in the city can bring in around $1,582 per month.
This means that you can expect a return of around 8.5% per year on your investment.
3. Jensen Beach, Florida
Jensen Beach is a beautiful town in Florida that comes at a much higher price. The average home in this city is around $671,681. However, you can expect to collect around $2,763 every month in rent.
This rental income works out to be around 5% per year on your initial investment.
Florida Housing Market Predictions for 2023
While the economy is slowing down the real estate market around the country, Florida seems to be the exception. With tons of benefits for all residents in the state, the Florida housing market predictions for 2023 all lean towards continued growth.
Are you thinking of selling up and making a move to Florida? Selling your home with iBuyer can help you find a qualified buyer in no time. You can get an accurate estimate of your home’s value with the online calculator and even receive a quick cash offer as soon as today.