According to Zillow, Florida has now taken the second spot in the U.S. housing market, surpassing New York. This shift is largely attributed to Florida’s rapid population growth during the pandemic, which caused the state’s real estate market to surge from about $2 trillion in January 2020 to $3.8 trillion in June. Having Florida 2nd most valuable in real estate still leaves the Sunshine state far behind the value leader, California. The Golden State’s total real estate market value is around $10.2 trillion.
In a recent report, Zillow presented new data indicating that the U.S. real estate market has rebounded after a brief decline from July 2022 to January 2023. The market is now at a record-breaking overall value of $52 trillion. The total real estate market in the United States has never been worth more than it is now according to the research.
Zillow economist Orphe Divounguy attributes this rebound to the emergence of new construction projects and homeowners choosing to stay in their homes despite rising mortgage rates, which helps capture deficit dollars. These factors have contibuted to making Florida 2nd most valuable in real estate market size.
Gainesville real estate values have grown as well. The dollar volume of the Gainesville MSA (Alachua and Gilchrist Counties) has grown from roughly $897 million in sales in 2019 to $1.4 billion in 2022. In Ocala (Marion County) that number is went from $1.5 billion in 2019 to $2.7 billion in 2022, according to Florida Realtors.
Values rose all over Florida but not all rose equally. According to a recent study conducted by Florida Atlantic University, Florida boasts seven of the top ten most overvalued housing markets in the United States. Among these, Cape Coral stands out as the most prominent example, with homebuyers in this region paying a 48% premium on their properties compared to historical rates. Neither Gainesville nor Ocala markets were in the top ten, according to the report.
We follow the data in North Central Florida. If you have questions about the market, don’t hesitate to reach out.