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The State of Florida continues to grow and gain prominence in the US real estate scene. This time the “Sunhsine State” has reached another mark, with 4 cities ranked among the TOP 20 with the highest number of apartment constructions in 2023: Miami, Orlando, Tampa and Jacksonvile.
The Miami metropolitan area, in particular, was in 4th place in the ranking for 2023, according to a report recently released by RentCafe. A total of 20,906 units were completed. Most of these apartments were in the city of Miami itself, representing 9,362 units, followed by Hialeah (2,055 units) and West Palm Beach (1,175 units).
Winning the 13th place, the city of Orlando had 10,212 new apartments built. Tampa was in 16th place, with 8,817 units. Jacksonville, 18th position, secured 7,145 new apartments in 2023.
If you think about buying real estate in Florida, it is essential to understand what these indicators reveal about the market and how they serve as a metric to support your purchase decision. So, be sure to read this article until the end.
Why is This Data Important?
The aggressive number of new constructions shows an extremely heated market, where construction companies race against time to try to meet the huge demand for real estate.
Cities like Miami and Orlando are among the most desired destinations in the world by investors. The high appreciation potential and high returns on rent are the main attractions.
But it’s not just investors who are part of the demand for real estate in Florida. American families from other states are migrating to the sunny state in search of better quality of life.
In recent years, with the consolidation of remote work, Florida has literally been invaded by Americans from northern states and also from California. This movement continues. There are more than 1000 new residents arriving in Florida daily.
Florida has had the largest population increase in the US in recent years, according to the U.S Census Bureau. The state’s population increased by more than 463,000 residents, exceeding 22 million inhabitants – an increase of 2.1% from 2021 to 2022.
All this flow of new residents and investors demand real estate in a market where the inventory (total properties available for sale) is low.
Construction Companies Can’t Meet the Demand
Construction companies, with an eye on demand, invest heavily in new condominiums. However, market bottlenecks prevent this offer from meeting demand. Lack of land, expensive construction materials, lack of labor and long construction deadlines are some of the challenges.
RentCafe’s report also reveals that almost 90% of the apartments built in the last 3 years are focused on the super-luxury segment, a very specific niche of investors, which hinders the necessary response to the high demand in the other segments.
The consequence of this imbalance between supply and demand could not be other than the increase in real estate prices. And, because of these factors, the appreciation potential in Florida is extremely attractive.
Florida is the Second Most Valuable Market in the US
Florida has just overtaken the state of New York, winning the second position in the ranking of the most valuable real estate markets in the US, behind California, although the value of properties in California fell 3.3% in the same period.
Opportunity for Investors: High Appreciation Potential
With a high imbalance between supply and demand and bottlenecks in construction, real estate prices in large centers such as Miami and Orlando remain under pressure, maintaining a high potential for appreciation.
It is, therefore, an interesting moment for those who think about buying real estate in Florida and taking advantage of the high appreciation potential.
See in this article the main reasons for real estate in Florida to continue to appreciate
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida. If you want to know more about the opportunities in the real estate sector of Miami, Orlando and surrounding cities, contact me right now and talk to me on WhatsApp: +1 305 498 6327(Silvana Recalde).
