Florida Housing Markets Poised for 2025 Growth
In recent decades, the Florida housing market has seen astonishing growth, attracting homebuyers, investors, and families seeking a better life. Florida is now the third largest state (by population), eclipsing New York in 2014. Regional growth with the added jobs that growth brings and expected shifts in mortgage rates are enticing more people to move to the state.
Home prices in Florida are expected to show resilience in 2025, with experts predicting steady increases across the state. The investment bank, Goldman Sachs, projects a price rise of 3.6% in the median home price in Florida.
A study by Realtor.com predicts that many Florida metro areas are poised for significant housing market growth in 2025. These areas are predicted to grow due to a variety of reasons beyond those alluded to above, including affordability, new construction, and a diverse population. These factors are drawing both buyers and investors.
Other factors attracting people to Florida are the climate and overall lifestyle. For example, Florida’s beaches and theme parks are unmatched in the country.
Realtor.com analyzed the 100 largest U.S. metropolitan areas. The study determined that nine Florida markets are set to rise in home prices and sales. (Considering that there are 50 states, Florida’s share is way out of proportion, representing fully nine percent of metro areas.)
The nine consist of:
- Miami-Fort Lauderdale-Pompano Beach
- Orlando-Kissimmee-Sanford
- Jacksonville
- Cape Coral-Fort Myers
- Lakeland-Winter Haven
- Tampa-St. Petersburg-Clearwater
- Deltona-Daytona Beach-Ormond Beach
- North Port-Sarasota-Bradenton
- Palm Bay-Melbourne-Titusville
So, why are these markets poised for growth? As mentioned above, on average, they offer greater affordability, when we consider home prices, taxes (sales, income, and property), cost of living (shopping, entertainment, etc.). States such as New York and California, for example, have far higher taxes, food costs, and home prices.
Secondly, Florida is outpacing most other states in new home construction which will help with affordability.
Florida continues to attract diverse buyers: families, retirees, and young people in greater numbers than the national average. The Sunshine State also attracts a disproportionate number of military personnel and veterans.
Military personnel and young buyers often avail themselves of favorable government backed mortgages, such as FHA, VA, and U.S.D.A. These programs can facilitate homeownership for those who might not have the large down payments traditionally required.
And, as mentioned earlier, with population growth comes more job opportunities. As more people move to the state, businesses do better and new ones open. In essence, it becomes a positive cycle and a win-win for businesses and residents.