Orlando and Tampa have secured positions among the top 10 hottest markets for the year, as per the latest report from Zillow. The rankings, based on an analysis of the top 50 metropolitan areas by population, place Orlando at ninth and Tampa at tenth. Buffalo, New York, takes the lead, followed by Cincinnati, Ohio; Columbus, Ohio; Indianapolis, Indiana; Providence, Rhode Island; Atlanta, Georgia; Charlotte, North Carolina; and Cleveland, Ohio.
Zillow attributes the hot market status to a combination of factors shared by these top 10 cities. These include a blend of job growth about new construction, fast-paced home sales, a surplus of potential buyers, and the anticipation of stable home values.
Job growth in Florida
According to FloridaCommerce, Florida’s labor force is flourishing, with 350,000 more people entering the workforce at an annual growth rate of 3.2%, surpassing the national rate of 2.3%. In November 2023, the Orlando metro area saw a 2% growth, adding 26,600 new private sector jobs, while the Tampa metro area experienced a similar 2% increase, adding 27,900 new private sector jobs during the same period.
Emerging property development in Florida
With the increase in available jobs, there is an influx of new residents, potentially leading to heightened competition and upward pressure on home prices. However, Florida seems to be keeping pace with the demand, drawing attention as one of the top 10 states attracting new construction buyers. In November, the U.S. Census Bureau reported over 1.5 million new residential construction projects breaking ground across the state, marking a 9.3% increase from the previous year.
Consistent property values and expedited sales
Stable home values and relatively quick sales contribute to the appeal of these markets. While the average U.S. home is valued at $347,415, the average Florida home value is $389,325, reflecting a 2% increase over the past year. In Orlando, where the average home value is $388,048, newly listed houses typically sell within 23 days, and in Tampa, where the typical home value is $375,338, newly listed houses take an average of 24 days to sell. Matt Kreamer, Zillow’s communications director, notes that for both metros, houses are often sold in about 18 days.
In contrast, some U.S. metro areas experience longer selling times. Myrtle Beach, South Carolina, leads with homes spending an average of 78 days on the market, followed by New Orleans, Louisiana, at 75 days, and Honolulu, Hawaii, at 69 days.
Anushna Prakash, a data scientist for Zillow Economic Research, expressed cautious optimism for the housing market in 2024, anticipating stability without the massive price spikes seen in the early pandemic or the rapid rise in mortgage rates in recent years.
