Not all real estate markets are created equal. As the old saying goes, “Location, location, location…”
And what better location than the Sunshine State? The name says it all.
Florida is one of the hottest real estate markets. No matter where in the Sunshine State you’re at, the market is hot.
It’s also true that no investment is without risk. And buying or selling a home is a stressful process.
But if you’re looking for some tips to help you make the right decision, we can help.
Here are our future housing market predictions for 2022 Florida.
Wondering what your home’s worth in the current market? Get a free online home valuation!
Housing Market Predictions in 2022 Florida
We’ve broken down our Florida housing market predictions below. In short, the Florida market will continue to be hot in 2022. Here’s why you can expect it to remain popular.
Continued Low Interest Rates
Interest rates will remain low for the foreseeable future, including throughout 2022. While they may increase some due to recovering from the COVID pandemic, that’s going to take time, so it won’t immediately happen in 2022. So if you’re worried about interest rates spiking any time soon, don’t worry.
The real estate boom has been happening throughout the U.S., but due to Florida’s appeal, it’s expected to continue, regardless of interest rates.
Florida will continue to be a hot spot for people to move to. Especially with the rise of working from home during the COVID crisis, many will want to relocate to a place with nicer weather, so they can enjoy the outdoors during their off-hours.
Other factors influencing people to move to Florida are empty nesters and retirees. Florida has no personal income tax or estate tax. That combined with nice weather year-round is encouraging older residents to move to the state.
Migration to Florida has continued over the past decade, and the state’s overall population has increased by over 2 million. It doesn’t appear to be slowing down any time soon. Approximately 900 people move to Florida every day.
This migration includes both people and businesses. Many of them are east coat residents moving from Northern states like New York, New Jersey, or Pennsylvania.
Overall, the population of Florida is growing at double the rate of the nation’s overall population growth. Other states can’t say the same.
Rising Rent and Real Estate Prices
High demand and low-interest rates will lead to increased rent and property prices for the immediate future. While the interest rate will likely eventually increase, the demand for the Florida property market will stay hot.
Adding to this demand is the Millenial demographic. Millennials will continue to enter the housing market. For many of them, they are entering the market for the first time.
If you already own an existing property in Florida, you could consider renting it. While there are pros and cons of renting your house, it does have its perks. At the very least, it will allow you to wait out the market and let your house appreciate over time.
So consider renting your existing property and building equity before you decide to sell.
If and when you do decide to sell, make sure to fix up your house before selling it. At the very least, make small changes like replacing damaged screens or fixing any pet damage. If you have time, you can also make a strong first impression with good landscaping, replacing the floors, and applying a few coats of paint.
Vacation Rental Demand Increases
After many long months of the pandemic, tourists will want to travel and vacation more in 2022. Expect the demand for vacation rentals to increase. With Florida’s theme parks and beaches, it’s a prime destination for tourists.
International travel restrictions will still remain in place for some locations, which means that options for overseas travel will stay limited. The travel itch will still need to be scratched, so expect domestic travel to increase. And when travelers want to experience warmer weather in colder months, or visit beaches, they will go to Florida.
So why Florida? It comes down to what the state has to offer visitors.
Most travelers have a strong preference for being near the water, with 83% wanting to be near an ocean or lake. 74% of people want to visit a beach on their vacation. Most travelers want to be near a nice beach, or relaxing next to a lake.
So if you have a vacation rental near a beach or a body of water, it’s already very appealing to travelers. Even if you don’t have beachfront property, you might have other points of interest nearby.
The ease of use of sites like Airbnb and Vrbo has also helped drive the demand for vacation rentals. They make it easy to search for a city and find places to rent. They also make it easy to get started and list your property.
New Home Construction Will Increase
In an effort to meet demand, new home construction will increase. While that sounds good on paper, new construction has been complicated, due to the pandemic.
Unforeseen delays have occurred due to the pandemic and the disruption of the supply chain. Building material costs have also spiked, mostly for commercial projects, but residential projects may be affected as well.
Material supply costs are up across the board. Steel, plumbing, electrical, and lumber supplies have all fluctuated in price. The price of 2×4 studs has increased as much as 400% and is limited in many markets. These aren’t luxury supplies – these are essential supplies for any project.
Then you have to factor in a shortage of drivers to transport materials, so even when materials are readily available, there may be a delay in getting them to the construction site.
Multifamily Real Estate Will Prosper
Multifamily real estate properties are expected to rebound. The multifamily market is weathering the pandemic better than other options. Vacancies for these properties remain low, but that is expected to change.
Nationally, multifamily occupancy rates dipped year-over-year. However, the opposite happened in Florida. Occupancy levels were about 96%, and most markets saw a slight rent increase.
The exceptions were Orlando and Miami, cities heavily dependent on international travel. Otherwise, multifamily housing has remained strong.
Many residents of multifamily housing aren’t moving out of the market, but moving into different multifamily properties. So they are moving within the multifamily market, instead of exiting it completely.
Demand Continues to Outgrow Supply
For many of the reasons previously mentioned, the demand for housing continues to increase. The supply of new residential constructions and new market listings can’t keep pace with the demand.
Everyone is looking to take advantage of interest rates while they are still low. That includes the previously mentioned Millenial demographic.
There’s also the issue of international demand. Foreign buyers will be returning to the U.S., especially as the Covid situation improves around the world.
Finally, some homeowners will become resistant to selling during this time. They may fear stiff competition from others in the market.
Cash Sales Will Continue to Increase
The numbers of homes that are all-cash sales will continue to increase for the immediate future. In fact, cash offers are more common than you think.
In 2021 alone, the number of single-family existing homes that were paid all in cash increased by 38.5% year-over-year. All-cash sales of condo and townhouse units increased by 22.9%. There’s no indication this will slow down, especially with the housing supply being limited.
Why are cash sales so appealing? For one, they’re easier.
Without the financing of a mortgage, there’s a lot less paperwork. Closer costs are also lower due to the lack of lender fees. There’s no need to be pre-approved for a mortgage.
Cash sales can offer a faster closing period, which is a benefit to both buyers and sellers. If a buyer wants to stand out more in a crowded market, offering to buy in cash is a great way to make a good impression.
If you have a credit score that’s low, a cash sale won’t factor into the sales process. So those credit mistakes you made years ago that are still haunting you won’t determine if you can become a homeowner. That’s a huge relief for many prospective homeowners.
Cash sales give sellers more confidence since there is no risk of financing falling through. If a seller has a property that is in need of repair, a cash buyer may be interested in purchasing a fixer-upper.
Cash sales offer a lot of benefits to both buyers and sellers, and few cons, so it’s easy to see why more and more people are interested in buying and selling real estate this way. It’s an easier, quicker process for everyone involved.
Should You Sell or Buy a Home in Florida?
If you’ve read this far and are intimidated by the disruptions in the market, you may be wondering if it’s worth buying or selling a home in Florida in the near future.
The answer? Yes, absolutely.
Despite the current turmoil in the market, selling your existing home or buying a new home will be worth it in 2022.
Modern data and technology have made buying and selling a home easier than ever. That’s especially true if you are willing to sell to an iBuyer, who will make you a cash offer on your home. Often this offer can happen as quickly as within 24 hours.
If you’re looking to sell your home, our free home value estimator will provide you with your home’s value in seconds. We use real-time industry data and local market data to provide you with an estimation that is based on actual info. This is not a subjective estimate from a realtor who may inflate your home’s value in order to win your business.
Where in Florida Are iBuyers Buying Homes?
iBuyers are buying homes all across Florida. Tampa, Jacksonville, Kissimmee, Lakeland, Ft. Lauderdale, Tallahassee, Daytona Beach, Cape Canaveral – there are dozens of locations in Florida that are hot markets for cash buyers, and it’s more than the largest cities.
Many buyers have shifted to smaller cities. They are looking to move someplace where their dollars will go further. That doesn’t mean they are abandoning cities altogether, but it does mean that smaller markets have become more attractive.
If you want a more detailed breakdown, check out our iBuyer market guide. We break down each market and tell you the best time to sell, the average number of days a house is on the market, median home value, and more. We’ll also tell you about the local iBuyers in your area, making it easy for you to find the perfect cash buyer.
The Florida Housing Market Continues to Be a Hot Market
Florida continues to be a popular market for all demographics. Real estate investing in Florida is attractive due to demand and the continued population growth.
Its gorgeous weather and zero income tax make it an attractive prospect for older buyers. Also, a new influx of remote workers is re-evaluating their current housing prospects.
The housing market predictions for 2022 Florida remain bright.
Our goal at iBuyer.com is to empower you and help you make an informed selling decision. When you’re ready to sell, we’ll match you to iBuyers.