In light of high interest rates and low inventory, the U.S. housing market is posting sluggish growth. However, Florida seems to be bucking the trend, with sustained activity and faster growth across its real estate markets.
The Sunshine State has experienced rapid population growth in recent years, which is driving up the demand for housing. Meanwhile, a strong supply of new housing units is bolstering inventory and attracting buyers.
It comes as no surprise, then, that Florida has been identified as a hotspot for real estate investors. In a recent report, American insurance website Insurify determined which housing markets are set for success over the next few years. Floridian cities constituted 3 of the Top 5 Real Estate Markets to Watch in 2024—namely, Sarasota, Fort Myers, and Orlando.
Looking at the Top 20 markets in the index, it seems the entire Sun Belt is a region to watch, with cities across Florida, North Carolina, and South Carolina all ranking highly.
Methodology
Calling on data from the U.S. Census Bureau and real estate marketplace, Zillow, the report measured each city’s average home value appreciation; the annual increase in new housing units; the ratio of new housing units to homeowners; and the rate of population growth since 2020. High-ranking cities scored highly in these categories compared to other U.S. markets.
No.1: Sarasota, Florida
Sarasota, Florida, led the index as America’s most lucrative housing market in 2024. Located an hour south of Tampa, Sarasota is one of the primary cities along Florida’s Gulf Coast.
Opportunities for developers and property investors are abundant in Sarasota. Around 1,500 residential units are under construction, and many affordable lots of undeveloped land are still available.
The affordability factor is also drawing buyers to this vibrant coastal city. According to the National Association of RealtorsⓇ, the metro area’s mortgage-to-income ratio was 19.5% compared to the national average of 23.3% in Q1 2023.
Florida Steals the Top Spots
The two other Floridian cities to make the Top 5 were Fort Myers in 4th place and Orlando in 5th. These markets were surpassed by two cities in North Carolina—Greensboro and Raleigh—which ranked 2nd and 3rd respectively.
Looking at the Top 20, several other cities in Florida gained respectable positions such as Jacksonville (9th), Miami (12th), and Tampa (16th).
What’s Driving Growth in Florida Markets?
Insurify’s report revealed that Florida cities had a high concentration of new housing units. Sarasota recorded 218.37 new units per 100,00 homeowners, the highest in the index. Fort Myers has 191 new units, Orlando 177, and Jacksonville 165. The only other city to score in this ballpark was Raleigh, North Carolina, with 179 new housing units for every 100k homeowners.
In terms of population growth, Fort Myers took the lead with a substantial 8.1% increase from 2020 to 2022, compared to a 0.6% national average. Sarasota recorded a 6.92% rise in residents, the second highest on the list.
Miami and Sarasota showed some of the highest home prices in the index, with average values of $458,749, and $458,659, respectively. These cities were eclipsed only by Riverside in California, which sported the highest average home price in the index and placed 20th overall.
It quickly becomes clear that many markets in Florida scored highly across the board, thanks to a strong supply of new housing, rapid population growth, and rising real estate prices. This sets these cities on a sturdy path for growth, propelling them to the top of the rankings. For those interested in generating substantial returns over the next few years, these housing markets have demonstrated strong potential and are certainly ones to watch in 2024.
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