Florida has surpassed recent York as the second most valued US home market, according to a recent Zillow analysis.
According to Zillow, the overall value of US housing increased by more than $2.6 trillion over the last year, defying
predictions that increasing borrowing costs would cause a prolonged recession. Low supply, combined with the lock-
in effect, which has made current mortgage borrowers unwilling to give up their low-cost loans, has pushed
nationwide prices to a new high.
The profits have not been evenly distributed across the country. California, which accounts for roughly one-fifth of
the US home market, has seen prices fall since June 2022. However, in Florida, the value of residential property has
increased by $160 billion during that time, propelling the Sunshine State ahead of New York in national rankings.
“Despite the presence of higher mortgage rates, which deterred some home shoppers and kept many existing
homeowners on the sidelines, enough buyers remained to keep the market moving,” stated Zillow’s senior
economist, Orphe Divounguy.
The real estate bubble in Florida has propelled Miami to the fifth-largest metropolitan housing market, up from
ninth place in May 2021 and surpassing the nation’s capital, Washington, DC, among others.
Miami property values have increased by more than 80% since the pandemic began, as have those in Tampa and
Jacksonville, while Orlando has witnessed an increase of more than 70%. According to Zillow, one of the reasons for
Florida’s rapid price increases is the state’s significant population expansion.
