At times, the real estate market can be fickle, and understanding the trends can be the difference between a tremendous investment or one that bottoms out. If you want to know more about Florida’s real estate, explore an in-depth guide that breaks down Florida’s scenic 30A beach real estate trends in 2022!
Florida Real Estate Trends in 2021
Before we can look ahead to what we think 2022 has in store for Florida’s real estate, let’s rewind the clock to 2021. How did Florida real estate perform in 2021?
The Florida real estate market flourished in 2021 and finished on a high note that looks to continue into 2022. 2021 saw the return of the spring buying season, which was absent in 2020 because of the pandemic. A strong job market and increasing population led to a record number of home sales in the state in 2021.
In the end, 2021 was an excellent year for Florida real estate investors, and many more are predicting 2022 will surpass 2021-record levels of home buying and housing prices.
Why Florida’s Real Estate Outlook Is Strong
The early returns and future outlook of Florida’s 2022 real estate market look very promising. There are several reasons for the bright future of Florida real estate, but it mostly comes down to the growth of the population and jobs in the state.
Large and Growing Population
Florida is already one of the biggest states in the US, behind only California and Texas, but it’s also one of the fastest-growing and has been for years. Since 2010, the state of Florida has added 2.7 million residents. That’s a nearly 15 percent population increase in a little over a decade, which has made the state a hotbed for housing development and job growth.
The population growth shows no signs of slowing down, either. Of the 10 fastest-growing cities in the country, 9 reside in Florida. Cities like Sarasota, Ocala, Naples, and Fort Myers are all experiencing population booms, which seems to be the case for practically every city in the state in 2022 and beyond.
Florida expects about 800 new residents every day over the next few years. That’s a lot of new people moving to the sunshine state every day! And, of course, if they’re moving to Florida, they’ll need new homes.
The job market and real estate market always go hand in hand; if one is up, the other is probably up, and the other is usually doing the same if one is down. In Florida’s case, a growing and robust job market is fueling a real estate boom as more and more people move to Florida for jobs.
It’s no secret that Florida is one of the most business-friendly states, with favorable tax rates that have attracted many businesses to move south. In the past decade, the gross domestic product of Florida has grown by a staggering 48 percent, which is equal to roughly $1.1 trillion.
Naturally, a booming economy such as Florida’s will attract jobseekers who need somewhere to live, hence the solid real estate outlook for the state.
Best Florida Cities for Jobs
Consistently, experts name Florida cities like Jacksonville and Tampa as some of the best places for jobseekers. But what’s favorable about Florida is that job growth is happening across the state, not solely concentrated in a few major metro areas like some states. Even during the pandemic, when national job growth was below 1 percent, Florida jobs grew by over 5 percent.
Pick a city in Florida you want to move to; odds are it has one of the fastest-growing job markets!
Florida Real Estate Market Trends for 2022
Florida’s population and job market are growing, so it only makes sense that its real estate market is also trending upward. Records show that the median home value in Florida has increased by nearly 25 percent just in the past year. Add in the previous five years, and it’s upward of 70 percent!
Florida homes are both selling well and selling quickly. The median time to contract, which is how long it takes on average for a listing to receive a sales contract, is less than two weeks. People are moving to Florida fast and scooping up available homes quickly.
The Renter’s Market
Along with increasing home values, Florida’s rental rates have also risen. The average rent in major metro areas in Florida has increased by 30 percent in the past couple of years alone. If you own a second or vacation home in Florida, this is excellent news, as your potential rental income is only likely to increase in 2022.
Currently, renters occupy a little over 30 percent of housing units in Florida, so there is still optimism that the market could increase in the coming years. Plus, renting out a vacation or second home is turning into a promising supplemental income opportunity to help pay for increased home values in the state.
Rising Home Values
We’ve talked about all the favorable indicators for Florida’s real estate market, and the bottom line is that home values are increasing in the state and will continue to trend that way for 2022 and beyond. Since the start of the 21st century, the price of Florida homes has ballooned by over 150 percent.
Even if you only look at home values for the past five years, including a down year due to the pandemic, prices have gone up by 66 percent in Florida. Even with all the negative factors over the past couple of years, Florida’s real estate market keeps growing.
What Florida’s Real Estate Trends Mean for the 30A Community
Florida’s economy and real estate outlook are both quite favorable, so what does that mean for the 30A area and the local beach communities?
The population increase throughout the state has already affected the 30A, and all signs point to that continuing. Job growth is up across the state, and with the 30A being near Tallahassee, which has a booming job market, it’s likely to attract more visitors and residents looking to invest in a real estate market trending upward.
So if you’re thinking about investing in Florida real estate, the 30A area is a great place to start, as it retains its small beach town charm but still has plenty of opportunity for growth. Plus, when you consider the potential rental income and growing value of Florida homes, there’s no denying the investment quality.
Whether you’re looking at Seagrove Beach or Rosemary Beach homes for sale, our agents and experts at 30A local properties can help you find the right property that fits you.
As you can tell, Florida’s scenic 30A beach real estate trends for 2022 look promising and robust. There’s no better time to invest in Florida real estate! The 30A area is a prime opportunity to find a beautiful property that you can enjoy with massive value increase potential.