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Florida Home Values Rising at One of the Highest Rates in Nation

On Behalf of | Apr 26, 2024 | Firm News

Florida’s housing prices have been going up for years. In fact, a recent study found that home values have gone up by well over 100% over the past 10 years.

In a national study, real estate analyst firm Architecture Lab looked at how home prices changed between 2013 and 2023. It then ranked all states by the amount their home prices increased.

Florida ranked second on the list. Here, the average home price in 2013 was $144,464. Ten years later, the average was $381,922. That represents an increase of more than 164%.

Prices are up all over

The only state to rank higher than Florida in the study was Idaho, where prices rose by more than 171%. Still, Florida and Idaho were not statistical outliers in the study: Prices rose in all 50 states over the decade, and they rose by more than 100% in almost half the states.

Interestingly, famously expensive states such as California and New York did not rank high in Architecture Lab’s list. Analysts conjectured that, because these states already had high housing costs, their prices did not rise as quickly. Meanwhile, states where home values were relatively low in 2013 rose much more quickly over the following 10 years.

Tightening market

For much of the 10-year period in the study, low interest rates helped heat up the housing market nationwide, but that situation changed over the past few years. As part of its efforts to reduce inflation, the Federal Reserve began raising interest rates. In some cities and states, this has considerably slowed down the market.

At the same time, Florida homeowners must deal with an increasingly difficult insurance crisis, as home insurance companies have been pulling out of the state.

This situation has implications for buyers, sellers, developers and nearly everyone involved in residential real estate. It’s more important than ever for those doing business in real estate to seek out experienced advice.