According to a recent report by real estate marketplace Zillow, Florida has surpassed New York as the second most valuable housing market in the United States.
While California still takes the lead with a total residential housing market value of $10.243 billion, Florida comes in second at $3.810 billion, followed by New York at $3.650 billion.
Overall, the U.S. housing market has experienced a significant resurgence, surpassing its pre-pandemic value by 49%, the report found. Leading the growth are the major metropolitan areas of New York, Los Angeles, San Francisco, Boston, and Miami, which have emerged as the most valuable housing markets.
Florida is now the second most valuable housing market in the U.S., and Miami is the fifth most valuable metropolitan housing market. Alexander Spatari | Getty Images.
Florida’s second-place spot was also driven by the fact that four of the six housing markets that have gained the most value since the pandemic are all in the state: Tampa (+88.9%), Miami (+86.6%), Jacksonville (+82.4%), and Orlando (+72.3%).
Another factor driving the increase is the population surge, Zillow noted in the report, sparking both new construction of real estate and increased competition for existing properties. While the four most valuable metropolitan housing markets in the country (New York, Los Angeles, San Francisco, and Boston) have held steady over the past five years, according to Zillow, Miami has emerged in fifth place — taking Washington D.C.’s former spot, and also jumping from its ninth place rank in 2021.
The appeal of warm weather, low taxes, and remote work flexibility has contributed to the population growth in Florida.
“Where is the population growing? Florida, Texas, the other kind of warm weather, low-cost, low-tax states,” Craig Lazzara, managing director at S&P Dow Jones Indices, told Yahoo Finance in June.
The data checks out, as Florida experienced a 4.3% increase in housing market value over the past year, and Texas a 1.5% jump, while high-tax states like California and New York experienced 3.3% and 0.2% declines respectively, according to the Zillow report.