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2022: What to Expect in the Florida Real Estate Market
December 8, 2021

2022: What to Expect in the Florida Real Estate Market

by The CE Shop Team

Are You Prepared for Florida's 2022 Real Estate Market?

Despite another pandemic year and the uncertainty that came with it, the Florida real estate industry was on fire. In 2022, markets across the Sunshine State are forecasted to continue basking in the heat. With demand steadily increasing, low-interest rates motivating buyers, and rapidly rising home sale prices, real estate agents all across Florida should gear up for another scorching year.

2021 Florida Real Estate Outlook: Hot

As of October 2021, the average home in Florida was priced at $328,576, a 23.9% increase year-over-year — an unprecedented figure that has left most experts speechless and unable to pin a concrete number to forecast growth entering 2022. Rising prices and Florida’s skyrocketing home sale prices in 2021 are promising signs that 2022 could be profitable for agents and sellers alike. 

Although the number of home sales across the state decreased by 4.5% year-over-year (YoY) in October 2021, the number of homes sold above listing price increased by 16.2 pts. year-over-year in that same timeframe. The number of days properties spent on the market also fell to a significant 38 days on market, down from 60 days a year ago. Thanks to record low-interest rates and consistently strong demand, Florida will continue to be a seller’s market as 2022 unfolds.

If the residential real estate market seemed competitive and expensive, you may be shocked by the Sunshine State’s rental property data.

Rent prices have increased by 35.5% year-over-year statewide, and Florida held some of the highest rent increases when compared to the rest of the country. In key markets, the rent price increase is even more shocking. For example, rent prices for a one-bedroom apartment increased by a whopping 56.7% in St. Petersburg.

Despite the high rental costs and low housing inventory, people are flocking to Florida. According to Florida’s Office of Economic and Demographic Research, an estimated 329,717 new residents moved to Florida between April 2020 and April 2021 alone. Unsurprisingly, the Sunshine State was the number one relocation destination for Americans in 2020. While 2020’s data proves that Florida is in high demand, this population growth stretches back at least a decade.

The state’s population grew 14.6% from 18.8 million residents in 2010 to 21.5 million in 2020. Though more than half of all counties in the nation experienced a decline in population over the last 10 years, the majority of Florida counties — nearly all of them in the most populous areas of the state — experienced an increase in population.

Meanwhile, a total of 0.8% of Florida homes were 30–89 days delinquent on mortgages, just slightly above the national average of 0.7%. So, while new transactions continue to boom and wonderful weather draws more and more people to Florida, current homeowners will continue to thrive.

Florida Home Data
Source: Zillow

2021-2022 Florida Real Estate Market Data

Zillow Home Value Index

$328,576

Home Value Change YoY

+23.9%

One Year Home Values Forecast

+12.8%

Rent Price Change YoY

+35.5%

The Percentage of Homes With Negative Equity

2.3%

Mortgage Delinquency Rate

0.8%

Available Housing Inventory

56,671

Buyer’s or Seller’s Market

Seller’s

Market Insights for Florida 

In October 2021, the Bureau of Labor Statistics reported that Florida’s unemployment rate was 4.6%, down from 5.8% year-over-year. At that same time, the national unemployment rate was also 4.6%, but we expect Florida’s figures to change as the tourism and hospitality industries continue their track to normalcy. Economic activity often correlates with growth in the real estate industry, and narrowing unemployment rates along with low-interest rates are a positive sign for agents the year ahead.  

Beyond Florida’s great outdoors, the lack of state income tax, and access to the ocean, it’s no surprise that folks are swarming in the Sunshine State. It also doesn’t hurt that the state ranks highly in many key categories in terms of national power rankings. According to U.S. News, here’s how Florida shakes out in comparison with the rest of the nation:

  • Third in education 
  • Eighth in fiscal stability
  • Eighteenth in natural environment

2022 Real Estate Market Forecast Florida

Florida also sports some other very attractive features that could positively impact its market in the year ahead. Florida is a hot spot for those with new remote-work positions looking to escape the high taxes, hustle and bustle, and harsh winters of large Northeastern cities. 

With its influx of new residents, experts expect housing inventory to remain low, which will keep prices high and encourage bidding wars. Florida real estate, while still a great investment that affords homeowners a high quality of life, will remain a strong seller’s market in 2022. 

With tight inventories and high demand, Florida real estate agents should stay in close touch with past clients and their spheres of influence. With the twists and turns we’ve experienced over the last two years, information has never been more powerful. Agents will need to be full-time knowledge brokers to best serve buyers, sellers, and investors in 2022.

With a myriad of opportunities on the horizon, there has never been a better time to help your fellow Floridians find the property of their dreams.

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