What are the Florida housing market predictions in 2024? Real estate brokers, sellers, buyers, and renters await these predictions yearly. They can determine what they should buy, sell, or invest in.
Florida Housing Market Predictions for 2024
Different folks have different hopes for theFlorida housing market outlook in 2024. Many will want mortgage rates to fall to 3% to purchase a new home. Meanwhile, landlords may want less competition and increased rental property prices, resulting in effortless earnings.
In reality, the Florida housing market forecast in 2024 looks to be positive overall. Market experts predict that the housing market will be strong. Real estate professionals will have many opportunities to assist buyers and sellers in their endeavors. Let’s break down all of these Florida housing market predictions in 2024 without further ado.
Florida Rental Market Predictions in 2024: Declining Rental Rates for Single-Family Homes
Because of COVID-19, the rental rates in Florida have spiked on an upward trend. The state was more lenient than others when it came to COVID restrictions.
Moreover, it was among the first to operate normally throughout the pandemic. This contributed to the rise in Florida’s population between 2020 and 2022. Likewise, rental prices in the area soared.
However, that all might be changing. Will rent go down in 2024, Florida? The short answer is yes. Statistics show that the rental rates in Florida have been decreasing throughout 2023. According to DSNews, single-family rental rates have been falling for 15 months consecutively throughout the country.
This doesn’t mean that renting a property in Florida is cheap. However, landlords and property owners should know that keeping their rentals at the same price as last year will not be helpful to them. Florida has seen a stark drop in rental rates this past year. Thus, landlords should re-evaluate their listing prices.
Less Remote Work
Why is there such a large decline in rental rates in Florida? Firstly, there has been a shift back to traditional in-person working arrangements in 2023. People are no longer always working from home. Hence, they are no longer relocating to Florida and returning to major metropolitan cities.
Cost of Living
Secondly, the cost of living in Florida has increased because of the influx of residents during the pandemic. Meanwhile, wages have remained stagnant. Due to these factors, people can no longer afford to rent homes within the state.
New Apartment Buildings
Finally, the state has seen a mass construction of new apartment buildings. Single-family homes are no longer sought after. Apartment complexes are located in more strategic locations and have more amenities.
Florida Housing Market Predictions 2024: Slightly Lower Demand and a Normalizing Market
Regarding migration, Florida has seen an influx of residents and movers in 2022. Its population jumped 1.9% within just one year — faster than anywhere across the country. Moreover, there is an estimated annual population growth of 300,000 residents beginning next April. As a result, the price of homes remains high in Florida. Mortgage rates, which increased significantly over the last year, are more than 7% on average for a 30-year fixed-rate mortgage.
However, there has been a slightly lower buyer demand in the past few months. This is because there has been a recent increase in interest rates, and mortgages are more expensive for prospective home buyers. This may moderate the pace at which home prices have increased these last few years. Overall, home prices in the state may decline by 5-10% in 2024 due to weaker demand and more inventory.
On the other hand, it’s highly unlikely that there will be a housing market crash in 2024. Florida housing market predictions in 2024 showcase that the market will normalize compared to the recent intense growth the state has seen. Moreover, the overall real estate market will tilt in favor of sellers as existing homeowners are reluctant to list, and inventory continues to grow.
Purchasing a Home Still Worthwhile
It’s still a worthwhile investment to buy a home in Florida. The inventory levels remain low, yet a steady stream of new residents has come in. This should sustain and even increase the value of homes. However, price gains will probably be smaller in 2024 than in the past few years. Nonetheless, it’s a good time to buy a home in Florida if you want a long-term residence.
Selling a Home With a Healthy Sale Price
Home sellers can still sell at a healthy sale price in the state. Average and median sale prices will be up 2-3.7% year-over-year. On the other hand, as mortgage rates remain costly and housing inventory stays low, sellers might find it harder to get the offers they desire. It also might be more challenging to sell properties quickly. The median time to get a contract is 27 days. Meanwhile, that period is 69 days for making a sale.
Concentrated Population Growth
While Florida still expects population growth, real estate professionals should note that this growth is concentrated in large metropolitan areas. More specifically, Lee, Hillsborough, Orange, Palm Beach, and Polk counties have seen a larger influx. Polk was the fastest-growing county in the state and the seventh-fastest nationwide last year.
The 9 largest metros within the state are anticipated to grow by 10% in the next 10 years. Southwest Florida and Orlando may see a 20% growth — much larger than the expected growth in South Florida. Furthermore, those moving into these areas are bringing their businesses with them. This will continue strengthening both the residential and commercial industries and creating more jobs.
A Normalizing Real Estate Landscape
Since the pandemic, the housing market in Florida has seen a massive influx of new residents. However, this feverish growth has since slowed in 2023. Despite this, the demand for homes is still relatively healthy in Florida. There’s unlikely to be a market crash, and the Florida housing market predictions for 2024 showcase that it will remain a seller’s market for now.
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