Florida Tops NY in Home Values
Study: Florida surpassed New York to rank second in terms of house values, only behind California.
Tampa (ranked 18th) and South Florida (ranked 5) made the list of the “Top 20 most valuable metros.”
A Zillow analysis shows that the value of the U.S. housing market increased by over $2.6 trillion in the last year, mostly as a result of growing home prices and the value of new construction, according to an article by Kelly Smith of Florida Realtors.
Based on the data analyzed for the report, Florida has led the way in this value gain. The Sunshine State moved up to the No. 2 spot, pushing New York State to third place, in the most recent estimate of total real estate worth. With a value of over $10 trillion, or about 20% of the entire US economy, California continues to hold the top position.
Two metro areas in Florida are included in a ranking of the top 20 U.S. metros according to the total value of their real estate:
- Miami-Fort Lauderdale: $1,269.8 billion, up $100.5 billion since June 2022 – 8.6%
- Tampa: $521.1 billion, up $18.5 billion since June 2022 – 3.7%
Despite the fact that “total real estate value” is always a fuzzy concept—the equivalent of an automated evaluation for every piece of real estate in America—many real estate experts are not surprised by the current trends.
The entire projected worth of all homes in the United States, or the value of the housing market as a whole, is currently slightly less than $52 trillion, or $1.1 trillion more than the peak that was previously attained in June 2022. The average value of a home in the United States increased by 0.7% during that period, which accounts for a little portion of that gain, but new construction accounts for the majority of the value shift.
According to Orphe Divounguy, senior economist at Zillow, “a steady flow of new homes hit the market this spring and summer, helping chip away at the deep inventory deficit and boosting the total value of the market.” There were still enough buyers to keep the market rolling. Existing home sales decreased this year, while new home sales increased. As long as rates stay high, new homes should account for a larger portion of the home sales market.
Over the previous five years, the four most valuable metro areas—New York, Los Angeles, San Francisco, and Boston—have essentially not altered. However, Miami, a recent arrival from Florida, took the fifth place after rising from ninth place as recently as May 2021. The increase in Miami’s worth forced Washington, D.C. out of the top five.
Metro areas are the most valuable
Four of the six markets in which home values have increased the highest since the pandemic began are in Florida:
Tampa: Up 88.9%
Miami: Up 86.6%
Jacksonville: Up 82.4%
Orlando, Up 72.3%
According to Zillow, the state’s rapid population growth partly explains Florida’s high new building numbers, but there was also more competition for existing homes.
California’s housing market is still enormous, worth over $10 trillion, or almost 20% of the whole US market. The next five places are Florida, New York, Texas, and New Jersey.
The article originally appeared on Florida Realtors.