5 Real Estate Trends You Must Know 2024
Florida's real estate market has been thriving, driven by a combination of population growth, economic opportunities, and a desirable climate.
In the past year, Florida has welcomed over 330,000 new residents, bringing its population to approximately 23 million.
This influx has had significant implications for the housing market and urban development across the state. Let’s look at the five trends that aspiring real estate agents must know:
1. Rapid Population Growth
Florida's population boom is one of the primary drivers of its real estate market. People are attracted to the state for its warm climate, job opportunities, and no state income tax.
Major cities like Miami, Tampa, Orlando, and Jacksonville are experiencing significant growth, but there's also notable expansion in suburban and smaller urban areas, offering more affordable living options with easy access to city amenities.
The fastest-growing cities in Florida include:
- Fort Myers: This city ranks as the fastest-growing in Florida, with a population increase driven by net migration. It has a median home price of around $509,633 (SVN Commercial Partners).
- Lakeland: Located in central Florida, Lakeland has shown strong growth with a median home value of $353,429. It is known for its numerous lakes and central location (SVN Commercial Partners) (Redfin).
- Port St. Lucie: Situated along the Treasure Coast, this city has experienced a significant population increase and has a median home price of $429,104 (SVN Commercial Partners) (Redfin). The Treasure Coast is shielded from the Atlantic Ocean by narrow sandbars and barrier islands that protect the shallow lagoons, rivers, and bays. Immediately inland, pine and palmetto flatlands are abundant. Numerous lakes and rivers run through the Treasure Coast, notably the Indian River, a part of the Indian River Lagoon system.
- Cape Coral: Known for its extensive canal system, Cape Coral has seen an 11% increase in population since 2017, with a median home price of $436,350 (Redfin).
- Kissimmee: Close to Orlando, Kissimmee has grown by 11% and offers various recreational activities. The median home price here is $361,000 (Redfin).
2. Limited Housing Inventory
The influx of new residents has led to a tight housing market with limited inventory. This shortage spans various price points, from affordable housing to luxury homes.
As a result, home prices have been driven up, making it a highly competitive market for buyers. Potential homeowners often encounter bidding wars, and properties frequently sell above the asking price (Yahoo News - Latest News & Headlines).
3. Corporate Relocations and Economic Growth
Florida's business-friendly environment has attracted numerous companies, contributing to the state's economic growth and increasing demand for housing.
Significant corporations, including tech companies and financial institutions, have established operations in Florida, creating job opportunities and drawing in more residents (Census.gov) (POLITICO).
Notable corporate relocations and expansions in Florida include:
- Goldman Sachs: Expanding operations in Miami.
- Amazon: Opening fulfillment centers across the state.
- Disney: Relocating some divisions to Lake Nona near Orlando.
4. Strong Multi-Family Home Market
The multi-family home market in Florida is robust, with renters making up a substantial portion of the population. Approximately 37% of Floridians rent their homes. The demand for multi-family housing is high, particularly in urban areas where mixed-use developments are becoming increasingly popular. These developments offer residents access to various services and entertainment options within their communities (Census.gov) (Yahoo News - Latest News & Headlines).
5. Increasing Diversity Among Homebuyers
Florida's homebuyer demographic is becoming more diverse. According to recent reports, there has been a significant increase in Hispanic/Latino and Black/African American homebuyers.
This diversity is reflected in the growing number of culturally rich neighborhoods and communities across the state (Census.gov) (POLITICO).
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Final Thoughts on the 5 New Florida Real Estate Trends
Based on the limited inventory and population growth, Florida will see a boom to its real estate value. This means that agents can see themselves earning bigger commissions.
This is good news for some and bad news for others. Bad news being: more people will set their eyes on becoming real estate agents, which will make it harder for you to stand out and be successful.
That’s why I will recommend to you our From Rookie to Rockstar residential real estate training course, taught by one of the top-producing agents in the nation, Richard Schulman.
This will teach you the fundamental rules and habits you should start implementing in your career to create a wildly successful business in the real estate industry.
Jump on it now, to get ahead of the competition. Your career will thank you.
TL;DR: Florida’s real estate market is shaped by five key trends: rapid population growth in cities like Fort Myers and Lakeland, limited housing inventory leading to increased competition and rising prices, corporate relocations fueling demand, a strong multi-family home market, and increasing diversity among homebuyers. These trends present both challenges and opportunities for aspiring real estate agents looking to thrive in the state's competitive housing market.