5 Florida Real Estate Markets to Watch in 2023

Florida's real estate market has always been a buzzing hub for investors, homeowners, and real estate enthusiasts alike. With its lush landscapes, stunning coastlines, and bustling cities, Florida's real estate scene has much to offer. However, some markets are particularly worth keeping an eye on in 2023. Let's delve into the promising Florida real estate markets of Orlando, Miami, Gainesville, Panama City, and Jacksonville.

Orlando: The heart of the sunshine state

Orlando, the heart of Florida and globally recognized as the "Theme Park Capital of the World," offers more than just world-class entertainment and a vibrant lifestyle. The city is renowned for its robust real estate market and flourishing economy.

The significant growth in Orlando's population, which has risen by 5.45% from 2019 to 2023^[1], demonstrates a strong and continuing attraction to the area. This increasing population directly drives demand for housing, which is a highly encouraging signal for real estate investors. Investors can capitalize on this rising demand to generate solid returns on their investments, either through long-term rental income or the sale of property.

Orlando's job market has shown remarkable growth. Creating 52,800 new private sector jobs over the past year marks a significant 4.2% increase^[2]. This increase in job opportunities and a decreased unemployment rate indicate a strong and expanding economy.

Such an economy usually correlates with increased demand for housing as more people move to the city for job opportunities. This job growth extends beyond the traditional hospitality sector, with significant contributions from technology, healthcare, and aerospace industries.

Given these dynamics, here are some potential exit strategies for real estate investors in Orlando:

• Buy-and-Hold: Given the city's growing population and strong job market, investors could consider buying properties to rent out. This strategy could generate steady rental income and potential capital appreciation over the long term.
• Fix-and-Flip: Investors could consider purchasing properties needing renovation, improving them, and then selling them for a profit. Given the city's popularity and the increasing demand for housing, there may be ample opportunity to sell renovated properties at a premium.
• Vacation Rentals: Given Orlando's status as a prime tourist destination, there could be a strong market for vacation rentals. Investors might consider buying and managing properties for short-term rentals, particularly in areas close to the city's many theme parks and attractions.

Orlando's strong economy, growing population, and status as a prime tourist destination make it a promising landscape for real estate investors. Whether you're seeking long-term rental income, the potential for property value appreciation, or opportunities in the vacation rental market, Orlando presents ample opportunities for diverse investment strategies.

Miami: where luxury meets diversity

Miami, often referred to as "The Magic City," offers a blend of vibrant nightlife, stunning beaches, and rich cultural diversity, making it a prime destination for both tourists and residents alike. Its real estate market is no less appealing, providing a unique mix of luxury and diversity that stands out even in the broad Florida real estate landscape.

The median home price in Miami as of May 2023 stood at $560,000, reflecting a 1.8% increase^[3] from the previous year. This price is notably higher than the national median, pointing towards Miami's strong reputation for luxury real estate and high-end living. Furthermore, the presence of numerous international investors helps to maintain the market's robustness and contributes to the steady climb in home prices.

Despite indications of a shift towards a buyer's market due to increased housing supply, the robustness of Miami's real estate market remains evident. With an unemployment rate of 3.7% as of December 2022^[4], lower than the national average, Miami's stable economy helps sustain the ability of homebuyers to afford higher prices. This resilience bodes well for real estate investors eyeing opportunities in Miami's market.

Given the unique dynamics of Miami's real estate market, investors could consider the following exit strategies:

• Buy-and-Hold: With steadily climbing home prices, investors could purchase properties and hold them for the long term. The steady climb in prices could result in substantial capital appreciation over time.
• Luxury Rentals: Given Miami's reputation for luxury and the presence of many high-end buyers and renters, investors could consider investing in luxury properties for rental purposes. These could fetch higher rental incomes and attract a premium clientele.
• Fix-and-Flip: Miami's diverse neighborhoods and range of property types could provide opportunities for buying properties needing renovation, then selling them for a profit after improvement.
• Vacation Rentals: Given Miami's status as a prime tourist destination, there could be a strong market for vacation rentals. Investors might consider buying and managing properties for short-term rentals, particularly in areas close to the city's many attractions.

Miami's diverse economy, the luxury appeal of its real estate market, and a robust influx of both domestic and international investors make it a promising landscape for real estate investors. Its unique blend of cultures and lifestyles and its stable economy create an enticing proposition for a wide range of real estate investment strategies.

Panama City, Florida: A gem in the Sunshine State

Panama City, located on the beautiful Emerald Coast of Florida, indeed offers a unique mix of small-town charm and a thriving real estate market. With a population of nearly 37,000 and an impressive annual growth rate of 4%^[5], the city has been attracting a diverse group of people. Its vibrant culture, thriving arts scene, friendly neighborhoods, and stunning beaches contribute to its allure.

When it comes to real estate, Panama City is showing strong market growth, with home prices rising significantly by 23.4% compared to last year. As of May 2023, the median home price is $300,000, according to Redfin data^[6]. This indicates the dynamic market could offer great potential for real estate investors.

Given Panama City's population growth, beautiful environment, and robust real estate market, investors have several promising exit strategies:

• Buy-and-Hold: Considering the city's rising home prices, investors could purchase properties and hold them long-term, expecting substantial capital appreciation.
• Vacation Rentals: Given its beautiful beaches and vibrant culture, Panama City could have a strong market for vacation rentals. Investors might consider buying and managing properties for short-term rentals, particularly in areas close to the city's many attractions.
• Fix-and-Flip: The rising home prices could provide opportunities for buying, renovating, and selling properties for a profit.
• Long-Term Rentals: Given the city's population growth, there could be a steady demand for rental properties. Investors could buy properties and rent them out for a consistent income stream.

With its growing population, thriving real estate market, and attractive lifestyle, Panama City presents a promising landscape for real estate investors. Its unique blend of small-town charm and vibrant energy, coupled with its robust real estate market growth, creates an enticing proposition for a wide range of real estate investment strategies.

Gainesville: A hub of potential

Gainesville, Florida, presents unique opportunities for real estate investors with its bustling city life and promising real estate market. With a population of around 141,341 in 2023^[7], this relatively small city is home to the University of Florida, which adds to the area's appeal and potential for steady housing demand.

A significant surge in home prices of 16.9%^[8] from the previous year shows a robust and healthy market. As of May 2023, Gainesville's median home price is $305K^[9]. Despite the price surge, the presence of a significant student population can keep the rental market strong, providing a constant stream of potential tenants for real estate investors.

The foreclosure situation in Gainesville also presents a unique opportunity for investors. While foreclosures can be a concern, their number has decreased by over 65% in the past year^[10], indicating positive market development. Furthermore, the fact that foreclosed homes sell at a 37% lower price than non-distressed homes means that investors could acquire properties below market value, which they can then renovate and rent out or sell at a higher price. Given this information, here are some potential exit strategies for real estate investors in Gainesville:

• Buy-and-Hold: This strategy could work well in Gainesville, given the city's strong rental market, mainly driven by the student population. Investors can purchase properties and rent them out, securing steady rental income.
• Fix-and-Flip: With the city's surging home prices, investors could potentially profit from buying properties, especially foreclosed homes, at lower prices, renovating them, and selling them at a higher price.
• Student Housing: Given the presence of the University of Florida, there is likely a strong demand for student housing. Investors can consider buying properties near the university to cater to this market.

With its dynamic blend of academic influence, growing real estate market, and opportunities presented by foreclosed homes, Gainesville offers an attractive landscape for real estate investors.

Jacksonville: The rising star of Florida

Jacksonville, Florida, presents a remarkable opportunity for real estate investors with its high in-migration, substantial population growth, and business-friendly policies. The city, known for its rivers and beaches, offers a suburban lifestyle that is both affordable and dynamic.

The real estate market in Jacksonville is thriving, evidenced by a significant increase in single-family home values. Over the year ending April 2022, home values rose by a remarkable 23.4%, indicating strong market growth^[11]. Furthermore, over 41.5% of these homes were sold above their asking price^[12], signaling high demand and a competitive market environment.

Population growth is another critical factor in Jacksonville's appeal to real estate investors. Over the past decade, the city added over 100,000 residents, leading to a population boom of 44% in St. John's County^[13]. This increase in population creates a robust demand for housing, both for homeownership and rentals.

The city's pro-business and pro-development policies foster a supportive economic growth and job creation environment. A healthy job market usually equates to a strong demand for housing, which is a positive sign for real estate investors.

Given these factors, here are some potential exit strategies for real estate investors in Jacksonville:

• Buy-and-Hold: With the significant population growth, a buy-and-hold strategy can provide a steady income stream from rental properties. This approach can also capitalize on the long-term appreciation of property values in the area.
• Fix-and-Flip: Given the high demand and competition in Jacksonville's housing market, investors can consider purchasing undervalued properties, renovating them, and selling at a profit.
• Development or New Builds: Given the significant rise in home values, long-term rentals could provide a steady income while allowing for property appreciation over time.
• Long-term Rentals: Given the significant rise in home values, long-term rentals could provide a steady income while allowing for property appreciation over time.

Overall, Jacksonville offers a promising landscape for real estate investors, with its rapidly growing population, thriving real estate market, and business-friendly environment. Investors should consider their financial goals and risk tolerance when planning their strategy in this promising market.

Wrapping up

Florida's real estate market is dynamic, offering various opportunities for different investment strategies. Whether it's the robust growth of Orlando, the luxury of Miami, the potential in Gainesville, or the surging market of Jacksonville, there's a city to meet every investor's needs. Whether you're an experienced investor or a first-time buyer, understanding these markets can help you make informed decisions.

That's where Kiavi comes in.

With our innovative platform, Kiavi simplifies real estate investment financing by providing clear insights and user-friendly tools. It helps bridge the gap between you and your investment goals, ensuring you are well-equipped to navigate Florida's ever-changing real estate landscape.

As with any investment, conducting thorough research and considering local market trends, economic factors, and long-term growth potential is crucial. With the right approach and with Kiavi's resources at your disposal, Florida's real estate market can offer rewarding opportunities in 2023 and beyond.

Sources:
1 Macrotrends. "Orlando Metro Area Population 1950-2023," n.d.
2 Florida Commerce. "The Florida Department of Economic Opportunity Announces the Orlando Area April 2023 Employment Data," May 19, 2023 3 Redfin. "Miami Housing Market," n.d.
4 Devon Thorsby. "Miami Housing Market Forecast,", February 16, 2023
5 World Population Review. "Panama City, Florida Population 2023," n.d.
6 Redfin. "Panama City Housing Market," n.d.
7 World Population Review. "Gainesville, Florida Population 2023," n.d.
8, 9 Redfin. "Gainesville Housing Market," n.d.
10 Than Merrill. "Gainesville: Real Estate and Market Trends," FortuneBuilders. n.d.
11, 12 NEFAR. "May 2023 Market Review," n.d.
13 World Population Review. "Jacksonville, Florida Population 2023," n.d.