The mass exodus from New York to Florida is showing in newly-released market reports conducted by Zillow. Florida has now surpassed New York to take the second place spot of Most Valuable Residential Real Estate Markets in the United States, trailing only behind California.
Florida’s uptick in value has been credited with the population surge that began after the pandemic in 2021. New residents flocked in from metro areas including New York and Chicago. We have also seen a migration of new residents from the Connecticut area as savvy residents escape mounting taxes and search for a warmer climate.
In order to offer housing for the new Floridians, the construction industry has been full-steam ahead with new condo towers being announced nearly every week. The value of Florida’s residential real estate now tops $3.62 Trillion in December 2022, ahead of New York’s $3.32 Trillion. In December of 2021, Florida’s real estate was valued at $3.01 Trillion and the number is continually growing.
A Jump In Value
While most of this value comes from the Miami market, eight of the top ten fastest growing metro areas in the United States were in Florida. The boom is statewide.
Miami/Fort Lauderdale’s market value grew from $942 Billion in 2021, to $1.2 Trillion in December of 2022, a 23% increase year over year. Lakeland had the largest percentage of increase in the United States with a 25.3% growth. Their values came in at $82 Billion in December 2022.
While California still holds the title of the most valuable real estate market with $9.52 Trillion in property values, they are also quickly losing momentum. Obviously, there is a long way to go for Florida to catch up. The California market is valued at close to the Florida, New York and Texas markets combined.
With this being said, California’s recent policies that are not friendly to luxury real estate holdings and investors are scaring many of these purchasers out of the state. Even the Hollywood elite is relocating to places like Miami, Austin and Memphis.
What’s To Come
While it is predicted that home price appreciation is set to stagnate over the next year, this is on a national scale and is a response from the market to the rising interest rates and inflation.
It is not predicted that Miami’s real estate market will stagnate as we are still experiencing “The Citadel Effect,” an influx of new executive-level residents from Chicago that are in the process of relocating to the Magic City. Ken Griffin’s move to Coconut Grove and subsequent commercial purchases in Brickell have also led to a contagion of tech firms and other financial institutions following suit. As construction has not even begun on Citadel’s new headquarters at 1201 Brickell Bay Drive, The Citadel Effect is anticipated to positively affect Miami’s real estate market for some time in the future, particularly in the Brickell/Downtown Miami/Coconut Grove areas.
If you need or want to move in the Miami area, or if you are searching for a real estate investment, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman, to discuss pre-qualification requirements. You may reach Michael directly at (786) 566-1700 or via email at firstname.lastname@example.org.
Image Credit: InterMiami CF
This story originally appeared on Miami Luxury Homes