What is Propelling the Buyer Demand in Florida Real Estate?

Gayle Kurtzer-Meyers

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Community neighborhood/Photo by David McBee from Pexels

Interest in Florida real estate is growing.

Real estate always seems in demand in some parts of the country despite high pricing, low or volatile inventory, and plenty of interested buyers. But real estate demand can be cyclical, and most cities and regions experience ups and downs in their markets, with interest growing and waning with different factors influencing those fluctuations. Right now, the interest in Florida's real estate is strong and doesn't show any signs of slowing. But what is behind the buyer demand in the Sunshine State's real estate right now? Let's look at what is propelling this growth and how it affects the market in this southern, tropical state.

Location, location, location

As anyone who has looked at property knows, the adage about the importance of location is key to understanding pricing and demand. And the state of Florida is an important area for many buyers, fueling high buyer demand in the Sunshine State. While this southern state has always been a favored destination for "snowbirds" looking to escape the harsh northern winters, in the past two years, more and more northerners have chosen to make a move to this southern state permanent instead of being a seasonal getaway. The state's consistently warm weather has influenced some buyers to pursue property ownership in this state, but its excellent weather is not the only reason buyers are flocking here.

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People enjoy the sand, surf, and sun that Florida offers. /Photo by Monica Silvestre from Pexels

Tax incentive

Buyers are choosing this state because of its favorable tax laws. Unlike many other areas in the US, Florida has no state income tax or estate tax. This tax incentive appeals to buyers who can save big bucks every year on their real estate investment in the Sunshine State and look forward to paying less out on their estates in the future.

Low-interest rates

Currently, interest rates are still low, fueling even more real estate purchases in Florida. As rates stay low, buyers will get more for their money in Florida especially coming from states with a notoriously high cost of living like California or New York.

Fewer pandemic restrictions

One of the top apparent reasons for the continued upward trend of buyers in this southern state's real estate market has been the state's attitude toward coping with the pandemic. Governor DeSantis has notably kept the state relatively free of restrictions, increasing interest in buyers who are fleeing restrictive, locked-down areas for a more relaxed environment. Additionally, this state's final pandemic restrictions were lifted in May 2021, making the state even more appealing to buyers seeking a life with less governmental control.

The financial hub of the South

Another reason why the real estate market is hot in Florida is because the southern hotspot Miami is fast becoming a financial and banking hub. In recent years, big corporations like Elliot Management, Blackstone, and Goldman Sachs have all relocated or brought big offices to Miami.

Not only have these financial institutions arrived in the state, but Florida is also gaining ground as a tech hub. In addition, with the rise in remote work's popularity, many workers are taking advantage of the state's enviable weather to live and play in the state while retaining employment elsewhere. As a result, these large firms have also brought more employment opportunities for Floridians, encouraging them to move to this southern state, putting more pressure on the housing market.

Available housing

States that rely on tourism may have excess housing utilized with seasonal travelers on vacation. Since the Sunshine State is bordered on three sides by gorgeous beaches, tropical weather, and popular vacation destinations, housing has always been a priority for the state to accommodate frequent visitors. But with this state's year-round, almost perfect weather, vacation or resort housing is constantly being planned and built. Huge resorts, multi-family housing, and planned communities are sprouting up all over the state, more and more with permanent residents purchasing homes

instead of the previous trends of those properties being purchased by vacationers or as short-term rentals. This state offers plenty of room for developments, too, with very few areas built out entirely. This available space and constant construction combined with the state's business-friendly attitude creates an ongoing availability of housing opportunities for interested buyers.

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Florida is a golfer's paradise. /Photo by Justin Luck from Pexels

Lifestyle

Anyone who has visited a southern state with white sand beaches and plentiful sunshine knows it's the lifestyle opportunities that bring people back over and over to places like this. Buyers looking for property here find the many beaches, golf courses, and other outside activities all fragranced by a salty ocean breeze appealing. For those who may have escaped harsh winter months or even those simply looking for a warm, inviting retirement location, southern cities like Miami, Tampa, and Fort Lauderdale have all seen surges in buyers who are seeking a more pleasant, outdoor life.

"I live in Florida, and when people ask me how close to the beach I am, I say, Twelve minutes or twelve hours. Depending on which beach you want to go to." -Jarod Kintz-

This article is for informational purposes only. It should not be considered Financial, Real Estate, or Legal Advice. The market fluctuates; therefore, not all information will remain the same. Consult a financial or real estate attorney before making significant real estate decisions.

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I am a Licensed Community Association Manager for the State of Florida and a published author. My top articles are about Florida RE, property management, and the many beautiful venues and activities available in the Sunshine State. Thank you for reading my work and joining me on the journey.

Kissimmee, FL
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