Over the past few years, demand for Florida properties has been exceptionally strong. Low-interest rates and continuing migration to Florida have fueled home sales. The median single-family home in the state rose consistently throughout 2022, starting the year at $374,000 and hitting its peak in May and June. But what does the market hold in store for 2023? Here's a look at our predictions for the fastest-growing real estate markets in Florida.
2023 Florida Real Estate Market Trends
Since early 2022, prices have dropped slightly in some areas as interest rates have risen. As of October 2022, the median home price in Florida was $402,000 according to Florida Realtors.
Limited supply and a wealth of new residents combined to create significant demand. According to the state’s Department of Highway Safety and Motor Vehicles, more than 41,000 New York residents alone switched their driver’s licenses to Florida addresses. A record number of people from California, Washington, Oregon, and Pennsylvania all chose to move to the Sunshine state.
Florida now boasts 22 million residents, behind only California and Texas with more than 262,000 moving to the state in 2022. The population is forecast to continue to grow to nearly 25 million by 2032.
How Did Our 2022 Florida Market Predictions Hold Up?
In 2021, we predicted the cities that would have the hottest real estate markets in Florida for 2022. Here’s how we ranked them and what actually happened.
We chose Fort Myers as the fastest-growing city for 2022 and it did not disappoint, growing by 6% in 2022 with a population now estimated at more than 92,200 residents. Fort Myers also added some 12,000 new jobs. Fort Myers was the sixth fastest-growing city in the entire country.
Cape Coral also has strong growth, adding 28,800 residents and bringing the community’s total population to 910,000 residents in the metro area.
The Lakeland metro area now has 358,000 residents, a nearly 2% increase from 2021.
Located in Sarasota County, North Port’s population grew by 5.5% and is now home to about 80,000 residents. It ranked 9th on the U.S. list of fastest-growing cities.
The Sarasota-Bradenton area added another 7,000 residents with a growth rate just shy of 1% in 2022.
Fastest-Growing Florida Real Estate Markets for 2023
Despite a cooling in the real estate market nationally, Florida looks to be a seller’s market for some time. More people are moving to Florida than any other state in the country.
According to Zillow, two Florida cities will be among the hottest markets in the country: Tampa and Jacksonville. Redfin also tabbed these communities for continued growth in 2023.
Doral has grown nearly 260% since 2000, and median home prices are now $489,950, Located in the Miami-Dade County area, it’s just three miles from downtown Miami and close to the Miami International Airport (MIA)
The median home price in North Port has grown 14.7% year over year, reaching $401,000. North Port is the only city in the state that has an entire state forest — 8,000 acres — within its city limits.
St. Cloud also continued to see rising prices, up 29.3% in 2022. The typical home is now valued at $425,000. This Central Florida city is part of the Orlando-Kissimmee metro area and benefits from the area's entertainment and theme park employers which saw crowds return in 2022.
The typical home in Homestead is now valued at $425,400, a 28.5% increase from October 2021. About a third of the homes on the market are selling above the asking price. Both a Miami suburb and a major agricultural area, it provides a small-town feel with easy access to metro resources. It’s also surrounded by an abundance of natural resources. Everglades National Park is to the east, Biscayne National Park is to the east, and the Florida Keys are to the south.
Fort Myers home values also jumped during 2022, reaching a typical value of $390,300 and a 28.7% increase from 2021 to 2022. Together with Cape Coral, Fort Myers Beach, Bonita Springs, and Sanibel, the metro area is nearly 788,000. Fort Myers saw a resurgence in tourism in 2022, providing a solid economic base for continued growth.
Port St. Lucie
Port St. Lucie on the Treasure Coast was the 12th fastest-growing city in the country in 2022 with a population now exceeding 200,000. Median home prices jumped almost 25% in 2022 to $409,000. It's also part of the Miami-Fort Lauderdale metro area, which has an estimated population of 6.83 million.
A typical home up for sale in Cape Coral sits at $431,000, up nearly 28% year over year and up nearly $200,000 from pre-pandemic prices. Located in Lee County on the Gulf side of the state, it’s the largest city in the Cape Coral-Fort Myers metro area and the largest city between Miami and Tampa. Cape Coral boasts over 400 miles of navigable waters. That’s more than any other community anywhere in the world, including Venice.
Kissimmee is 20 miles south of downtown Orlando and just 12 miles away from Walt Disney World. Typical home listings are priced at $385,000, gaining 31% over the past year. More than 40% of home sales in 2022 were above the list price.
Besides St. Cloud and Kissimmee, Orlando is also poised for continued growth in 2023. Median home prices are similar, at $338,500 based on 23.8% growth over the past year. In the center of the third largest metro area in the state, Orlando has grown to more than 300,000 residents and is one of the most visited cities in the world.
To say Palm Beach is upscale is an understatement. Typical home prices are up 44% year over year, reaching a record $2.48 million — nearly double levels in 2019 and 2020. Located on the east coast of the state on a barrier island, it’s a second home for many residents. With a year-round population of less than 10,000, that number more than doubles during the winter months.
Looking to Become a Real Estate Agent in Florida?
While the market may have slowed a bit from its peak in 2022, home prices continue to rise. With a constant influx of new residents, the Florida real estate market is expected to be among the most active in the country. If you’re thinking about building a career as a real estate agent in Florida, enroll at Aceable with our Florida Real Estate Commission (FREC) approved real-estate pre-license course to prepare you to become a licensed real estate agent.