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Florida is a state that’s always on the minds of real estate developers. The idyllic weather, beautiful views, incredible entertainment industry, and avid fans of the area ensure that every property here sells quickly and for a return on investment
So, while the world’s housing market went wild in 2021, what happened in Florida?
These are some of the trends that made the state’s year so interesting.
Single Family Homes Were King
Multi-family properties are usually a top seller in Florida, but in 2021 this was turned on its head. Due to fear of the pandemic, many started searching for homes to make their own start: and have their own space.
As a result, single-family homes outpaced all other properties on the market, watching prices skyrocket between 30 to 50% in some areas. This was the strongest in the spring, when sales rose by 47% from May 2020 to May 2021.
Hurricanes and Coastal Shifts Have People Wary
With news that the shores are going to shrink within the next fifteen years and the fact that hurricane seasons have been getting longer and stronger, many are moving away from coastlines and high rises. 2021 had a shockingly low increase in the number of people buying beachside property.
This is expected to continue partially into 2022, although it’s hard to predict from there, possibly being controlled by however this year’s hurricane season turns out.
Aging Out Elderly Population Means Far More Properties Available
It’s no secret that Florida is a retirement capital for older adults because of the warmer weather and constant entertainment, and in 2021 this was incredibly visible. The aging out population, and those leaving to move back closer to family, made the average age of the state- which was previously at nearly 43 slip down to 41. This also made far more properties available, although they still couldn’t keep up with the demand.
Although there are still elderly locals buying properties to leave behind as an inheritance to family, the average buyer in Florida is someone in their mid to late thirties, driven individuals either ready for a major investment or to start their families.
Far More Demand Than Supply
There’s far more demand for homes in Florida than there is supply, which means everywhere from Orlando to Fort Lauderdale, houses for sale are going to continue rising in price.
These prices are growing far slower now than they did in the spring of 2021, but the average Floridian property is expected to increase by at least 5% by the end of 2022, a number that has many investors excited to see what the new year will bring.
Florida Went Through a Wild 2021
Florida’s 2021 was a wild ride that few could keep track of or could have predicted, but it’s just the beginning. Properties are continuing to gain value, far fewer keep coming on the market every month, and it’s creating a bottleneck that’s ensuring steady growth for every home’s value.
In other words, if you’re considering investing, the best time would have been the end of 2019, and the second-best time might be now.