2023 is expected to be an exciting year for the Florida real estate market.
Economists across the USA agree that the country is currently in recession with economic activity slowing and prices expected to dip in 2023.
However, they also agree that Florida is completely bucking the trend seen in other areas.
Florida property prices have continued to increase even though the general economy has seen a downturn. Many attribute this to the fact that people are still flocking to Florida due to tax breaks and a lower cost of living.
With this in mind, we explore what’s next for this thriving property market.
A growing population is driving price increases
Current real estate trends in Florida are looking positive. Home values have risen steadily since 2019 due to low interest rates and a strong economy that has attracted people from out of state looking for their new home or second residence.
Despite economic turbulence, this trend is likely to continue into 2023, with demand outpacing supply in some markets, leading to higher-than-average appreciation rates across the state as a whole.
Furthermore, with an increase in investors looking for opportunities outside their home countries, Florida’s real estate market may see a boost from overseas buyers.
Demand for rental property is still soaring
The rental market has also seen a surge in demand, with rental prices increasing year-over-year. This real estate trend is likely to continue in Florida as more people look for affordable housing options in a tight market.
And according to WPTV, Realtor.com reported last year that “the Miami-Fort Lauderdale-West Palm Beach area is the third fastest-growing rental market in the country among metro areas.”
Additionally, a study found that Orlando and Daytona Beach saw a 22% increase in rent year-over-year, while Melbourne saw a 21% increase.
Businesses continue to make the Sunshine State a priority
In addition to residential real estate opportunities, commercial real estate is also expected to be strong in 2023. The state’s economy has recovered quickly from the pandemic and businesses are looking to expand and invest in new locations across the region.
There are also signs that more businesses may relocate to Florida due to its business-friendly climate and tax incentives; this could lead to more job opportunities and further bolster the local real estate market.
Overall, it looks like Florida will remain a desirable location for buyers in 2023, with appreciation rates that are expected to outpace the national average. This healthy market is great news for both buyers and sellers alike, as it suggests that investing in real estate now could be a smart way to build equity over the next few years.
With so much potential on the horizon, now may be the perfect time to get involved in Florida’s real estate market. Whether you’re looking to buy your dream home, find an ideal investment or are considering retirement to the sunshine state, here at Benoit Properties we can help you source your perfect property.
Contact us today to discover available properties in Florida.