Florida Real Estate: 9 Housing Markets Predicted to Rise in 2025

Are you thinking of buying a home in Florida? Realtor.com predicts that nine Florida metro areas are poised for significant housing market growth in 2025. These areas are attracting buyers due to a mix of factors like affordability, new construction, and a diverse population, making them attractive for those looking to invest in real estate. Let's explore which areas are on the rise and what makes them so appealing.

As a real estate enthusiast and someone who has closely followed Florida's housing trends for years, I've found that predicting future growth is a complex endeavor. Several factors contribute to the dynamic nature of this market, ranging from economic fluctuations to shifts in population demographics. But with the insights available from organizations like Realtor.com, we can see a clearer picture of which cities are likely to prosper.

While the housing market has gone through some dramatic swings in recent years, I've observed a consistent pattern in Florida. Many cities are experiencing a steady influx of new residents due to their attractive climate, job opportunities, and overall lifestyle. The increased demand, coupled with factors like new construction and potential increases in affordability, is creating a recipe for growth in certain markets.

Based on my experience and insights, I believe Florida's housing market is primed for a period of healthy growth, even in the face of national economic uncertainties. The factors that have made Florida attractive in the past, namely, its sunshine, beaches, and lifestyle, will likely continue to be significant drivers of the market.

Let's dive into the specific Florida markets predicted for growth in 2025.

Florida's Housing Markets Predicted for 2025 Growth

Realtor.com analyzed the 100 largest U.S. metropolitan areas and determined that 9 Florida markets are set to see a rise in both home prices and sales by 2025.

These Florida markets are:

• Miami-Fort Lauderdale-Pompano Beach
• Orlando-Kissimmee-Sanford
• Jacksonville
• Cape Coral-Fort Myers
• Lakeland-Winter Haven
• Tampa-St. Petersburg-Clearwater
• Deltona-Daytona Beach-Ormond Beach
• North Port-Sarasota-Bradenton
• Palm Bay-Melbourne-Titusville

Why These Markets Are Predicted to Grow

1. Affordability (Relative to Other Areas):

While the cost of living in Florida can be a challenge compared to some other states, these specific markets offer more affordable home prices relative to other major metropolitan areas in the U.S. However, affordability is a complex issue. While home prices might be lower, it's important to consider the local income levels. In some cases, buyers might need to dedicate a larger portion of their income towards housing costs, making it crucial to carefully assess personal finances.

2. New Construction and Inventory Growth:

In many of these markets, new construction has been on the rise, which has helped to increase the supply of housing and hopefully, ease the tight competition that has characterized the housing market for the past few years. This translates into more options for buyers and can help to stabilize or even decrease prices in certain segments of the market.

3. Appealing to a Diverse Buyer Population:

Florida continues to attract young, diverse families and retirees, with many markets seeing a higher percentage of residents under 35 and households with children than the national average. These markets also have a higher concentration of active-duty military personnel and veterans, which can contribute to a vibrant and stable community.

4. Strong International Connections:

Many of the Florida cities on this list have seen a significant influx of international residents. This can create a more diverse and global economy and increase demand for housing.

5. Government-Backed Mortgage Options:

The presence of a larger than average percentage of military households and younger buyers translates to a greater need for government-backed mortgages such as FHA, VA, and USDA. These programs can facilitate homeownership for those who might not have the large down payments traditionally required.

A Closer Look at Each Florida Market

Let's take a more in-depth look at each of the nine Florida markets that Realtor.com has identified for 2025 growth.

Miami-Fort Lauderdale-Pompano Beach

The Miami metro area is predicted to be the second-fastest-growing housing market in the entire country by 2025, with an anticipated combined 33% growth in home sales and prices. While affordability is a concern here, with housing costs accounting for 42.1% of income, the area's vibrant economy, beautiful beaches, and international connections continue to drive demand.

• Reasons for Growth: Strong economy, diverse population, proximity to the beach, international investment.
• Considerations: Higher cost of living, potentially competitive market.

Orlando-Kissimmee-Sanford

The Orlando area is a popular destination for families and tourists, thanks to its world-renowned theme parks and attractions. The market is anticipated to experience 27.3% growth in sales and prices by 2025.

• Reasons for Growth: Tourism industry, strong job market, family-friendly environment.
• Considerations: Competition from other housing markets in the area.

Jacksonville

Jacksonville is the largest city in Florida by area, and it boasts a thriving economy with a variety of industries. It's predicted to see 23.3% growth by 2025.

• Reasons for Growth: Strong job market, affordable housing options, growing population.
• Considerations: Can be challenging to navigate a sprawling metro area, and competition for some homes is likely.

Cape Coral-Fort Myers

This southwest Florida area is known for its stunning waterways and beaches. With anticipated growth of 22.8% in 2025, it continues to draw in retirees and families seeking a relaxed lifestyle.

• Reasons for Growth: Beautiful scenery, outdoor recreational activities, growing retiree population.
• Considerations: Can be impacted by hurricane season, as are most coastal areas of Florida.

Lakeland-Winter Haven

This central Florida area is seeing rising popularity, especially among younger families. With a predicted 20.9% growth by 2025, it's a great area to consider if you want to be close to Orlando but want a slightly quieter and more affordable area.

• Reasons for Growth: Growing job opportunities, affordable housing, close proximity to Orlando.
• Considerations: A smaller market compared to other metro areas on this list, so the choices for buyers might be more limited.

Tampa-St. Petersburg-Clearwater

This western Florida area is home to vibrant cities, beautiful beaches, and a flourishing economy. The area is predicted to see 20.9% growth in 2025.

• Reasons for Growth: Job growth, proximity to the Gulf Coast, diverse population.
• Considerations: Competition can be fierce in areas with high demand.

Deltona-Daytona Beach-Ormond Beach

This east-central Florida area is famous for its beach communities and attractions. This area is predicted to see 18.7% growth in 2025.

• Reasons for Growth: Tourism, outdoor recreation, beautiful beaches.
• Considerations: Hurricane risk.

North Port-Sarasota-Bradenton

This southwest Florida area has experienced a recent surge in popularity, with a predicted growth of 13.5% in 2025. It's a blend of suburban and coastal living, with beautiful beaches and a more relaxed pace of life.

• Reasons for Growth: Affordable housing options, access to outdoor recreation, growing population.
• Considerations: It's a little further from major cities, which could be a deterrent for some.

Palm Bay-Melbourne-Titusville

This area in east-central Florida is located on Florida's Space Coast and is predicted to see a 10.4% growth in 2025. It is a popular area for aerospace and tech jobs.

• Reasons for Growth: Growing job market (specifically in the aerospace and tech sectors), relatively affordable housing, and access to outdoor recreation.
• Considerations: It's further from the popular tourist destinations and metropolitan areas.

Factors to Keep in Mind When Considering a Florida Market

While these Florida markets are anticipated to grow, it's important to remember that these are predictions. The actual performance of each market could vary based on several factors, including the following:

• The national economy: Economic downturns and recessions can impact home prices and sales nationwide.
• Interest rates: Increased mortgage interest rates can discourage buyers.
• Local job market: Job growth is crucial to the health of the housing market.
• Natural disasters: Florida is prone to hurricanes, which can cause significant damage and have a negative impact on the local market.

Conclusion

Florida's housing market is dynamic and exciting, and it's clear that some markets are poised for significant growth. I am confident that these nine areas will offer fantastic opportunities in 2025 and beyond. By understanding the factors that contribute to their appeal, and making informed decisions, you can make a smart investment in your future and find the ideal place to call home.