Context Matters: Are Home Prices in Florida Relatively Cheap?
Nov 10, 2024
We could probably divide Florida into a couple groups:
- Locals who have lived here for a while.
- Newcomers who relocated here in the last few years.
In fact, over 2,050,000 people moved to the Sunshine State since from 2021-2023 according to the Census, which means nearly 10% of our total population is new to the state. ๐คฏ
If you've been here for 5+ years, you're probably looking around at the home prices and thinking "how on earth did that house sell for that much?" ๐ฅต
And if you're new you're asking the same question, but with a completely different tone.
More of a "that house only costs how much" kinda tone. ๐ค
It's all relative
Part of the challenge when living in one place for a while is you get used to the way things have been and changes can seem unreasonable.
Locals in Florida are looking at real estate and thinking about how expensive it is.
At the same time, people from outside the state are looking in and thinking about the deal they can get.
Here's a map of the median home price by metro area across Florida:
In total, the median price of real estate in Florida is currently $380,000. ๐ก
The most expensive markets include:
- Naples: $589,000
- Miami: $490,000
- North Port: $430,000
- Orlando: $401,000
- Port St. Lucie & Destin: $400,000
And the most affordable metros are:
- Sebring: $247,000
- Homosassa Springs: $260,000
- Ocala: $281,000
- Tallahassee: $295,000
- Pensacola & Lakeland: $315,000
Finding Opportunity
The real opportunities start to become visible when you zoom out and get context. ๐ผ๏ธ
Just by comparing the metro areas within the state, we can see significant differences in costs.
Then, consider that the median home price nationally is $420,000.
Suddenly, the narrative in your head goes from Florida is expensive to Florida is actually below the national average in most areas.
Only 3 of the 22 metro areas are above the national average which is a big deal as well. ๐
Going deeper, check out the median price in the top states where people are relocating to Florida from:
- New York: $420,000
- Georgia: $363,000
- California: $868,000
- Texas: $340,000
- New Jersey: $575,000
Depending on where in each state they're coming from and where in Florida they're going, you can see how the costs compare.
Now, we know home prices aren't the only thing that matter.
There's also cost of living, taxes, insurance, etc. to factor in and I'll be going in depth on that at my next MarketPulse 360.
That said, context around home prices is a great place to start and helps to adjust your mindset around relative value..
Where people are coming from matters a lot in how they view the real estate they're buying.
Stay open to what a "deal" looks like and recognize that real estate is all relative. ๐
Dr. Alex Stewart
Founder
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