Orlando and Tampa are poised to sizzle in the real estate scene this year, securing spots among the top 10 hottest markets in 2024, according to Zillow’s latest report.
Based on an analysis of the top 50 metropolitan areas by population, Orlando and Tampa claimed the ninth and 10th positions, respectively — Buffalo, New York, came in first on the list, followed by Cincinnati, Ohio; Columbus, Ohio; Indianapolis, Indiana; Providence, Rhode Island; Atlanta, Georgia; Charlotte, North Carolina; and Cleveland, Ohio.
So, what do the 10 hottest markets have in common?
Zillow says they boast a blend of job growth relative to new construction, swiftly selling homes on the market, an abundance of potential buyers and the expectation of stable home values.
Job growth in Florida
According to FloridaCommerce, Florida’s labor force is thriving with 350,000 more people entering the labor force at an annual growth rate of 3.2%, faster than the national growth rate of 2.3%.
In November 2023, the Orlando metro area witnessed a growth of 2%, adding 26,600 new private sector jobs over the year. Similarly, the Tampa metro area experienced a 2% increase, with the addition of 27,900 new private sector jobs over the same period.
New construction in Florida
An increase in available jobs means an influx of new residents — which can lead to heightened competition and upward pressure on prices — unless new construction can keep pace with the demand.
Among the top 10 states attracting new construction buyers, six are in the South, and Florida draws significant attention, with approximately one in every eight new construction buyers opting to purchase their homes in the Sunshine State.
In November, the U.S. Census Bureau reported that for the year, more than 1.5 million new residential construction projects broke ground across the state — a 9.3% increase from the year before.
Stable home values and (relatively) quick sales
While the typical home in the U.S. is worth $347,415, the average Florida home value is $389,325, up 2% over the past year.
In Orlando, where the average home value stands at $388,048, newly listed houses usually sell within 23 days on the market. Likewise, in Tampa, where the typical home value is $375,338, newly listed houses typically take an average of 24 days to be sold.
But according to Matt Kreamer, communications director at Zillow, for both metros, houses are often sold in about 18 days.
In contrast, Stacker compiled a list of U.S. metro areas with the lengthiest selling times. Topping the list is Myrtle Beach, South Carolina, where homes spend an average of 78 days on the market. Following closely are New Orleans, Louisiana, at 75 days, and Honolulu, Hawaii, at 69 days.
“Housing markets are healthiest where affordable home prices and strong employment are giving young hopefuls a real shot at buying and starting to build equity,” Anushna Prakash, a data scientist for Zillow Economic Research, said in a news release. “I’m cautiously optimistic that the housing market will get back on stable footing in 2024 — we shouldn’t see the massive price spikes of the early pandemic or fast-rising mortgage rates of recent years.”