Homeownership in Florida: How does it compare with other states?, by Adriana Montes.

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Homeownership in Florida: How does it compare with other states?

By Adriana Montes

Millions of Americans aspire to own homes. More than nine in every ten American investors consider owning a home to be either an essential or important component of the American dream. Homeownership can also be one of the best and most practical ways to build wealth both through appreciation of equity and tax deductions.

According to the latest census report in the U.S., Florida has the 23rd lowest homeownership rate among all the states. In Florida, the typical home is worth an estimated $245,100 in line with the national median of $240,500.Homeowners in the state are less likely than average to be paying down a mortgage. An estimated 56.3% of owner-occupied housing units in the state have a standing mortgage, compared to 61.7% nationwide.

In addition to that, homeownership rates in the state stand at 66.2% higher than the national average. But, it is worth noting that there are so many factors that affect the homeownership

rates, and depending on the location the housing costs may vary significantly which ultimately affects the rate of homeownership for a state.

The typical home in Florida is worth an estimated $232,000 slightly more than the national median of $229,800. Several cities in Florida including Spring Hill near Tampa, Lehigh Acres near Fort Myers, and Palm Bay in Brevard County are listed as some of the best cities to invest in real estate in 2022 according to Policy genius.

Based on the most recent reports from Florida Realtors, the Florida housing market is still a smart investment in 2022 with a tight inventory keeping housing prices high in the state high. It’s true that Florida has one of the hottest real estate markets in the country and for good reason. The state is bordered by the Gulf of Mexico, the Atlantic ocean, Alabama, and Georgia.

Florida is an international tourist destination with year-round sunshine and world-class theme parks. The economy is dynamic and diverse, with dozens of global business headquarters and a government that is both pro-business and prodevelopment.

Florida has gained more than 2.7 million new residents since 2010 making it the 3rd most populous after California and Texas. Home to over 21.5 million people Florida’s population grew by 14.6% compared to one decade earlier. Over the few years, Florida is projected to gain 845 new residents per day.

One of the many reasons that Florida is expected to keep growing so fast is from marketing the state as the ideal business location. The proactive business-friendly government in Florida is an expert at attracting new high-wage jobs for workers who can compete on a global scale.

The GDP of Florida is more than $1.1 trillion and has grown by more than 48%over the past ten years. Job growth in Florida increased 5.4% between January and September 2021, compared to just 0.8% nationally. The unemployment rate in Florida is just 4.6% with the leisure and hospitality, information, professional, and business services sectors showing the fastest sign of growth. Florida gained 84,500total jobs in September 2021 alone and remains on a long winning streak of job creation as WTXL in Tallahassee reports.

Job growth is spread evenly thought the state with all major metro areas adding new jobs in nearly all of the major employment sectors. Florida Tax watch expects the labor force in Florida to increase by 2.9% in 2022.

Home sales and prices are rising, inventory is going down and the number of buyers paying in cash for single-family homes has increased by almost half. The median home value in Florida is $328,576 according to Zillow as of October 2021. Florida median home values have grown by 23.9% over the past year. Over the past five years, home values in Florida have increased by nearly 69%. Single-family home prices in Florida are up 17.7% as of October 2021 compared to the previous year based on the most recent report from Florida Realtors.

The most recent index shows that home prices in Florida have increased by more than 156% since October of 2000. Over the last five years, the prices of a home in Florida have grown by nearly 66% while over the last month prices have increased by 1.8%. When compiling housing affordability data for Florida, researchers compare median housing prices to median family incomes and mortgage interest rates in the state.

Florida is ranked #31 in affordability meaning that Florida has one of the least affordable housing markets among all fifty states and it has no personal state-level income tax.