Florida has now overtaken New York as the second most valuable housing market in the United States, as reported by Zillow. The state’s rapid population growth during the pandemic significantly contributed to the surge in real estate value. The market escalated from $2 trillion in January 2020 to a staggering $3.8 trillion in June, according to Zillow’s recently released data.
This positions the Sunshine State ahead of New York, securing the number two spot nationally. However, Florida still trails behind California, where the housing market is valued at an impressive $10.2 trillion.
Zillow’s latest report also indicates that the U.S. real estate market is experiencing an upswing after a brief downturn from July 2022 to January 2023. It has now reached a historic high of $52 trillion overall. Orphe Divounguy, an economist at Zillow, attributes this rebound to the introduction of new construction, which is accommodating the demand as many homeowners choose to stay in their current residences amidst rising mortgage rates.
Florida’s total housing market value has hit a record high, mirroring the nationwide trend. New York, now in third place, is the only state among the top five to have witnessed a decrease in market value this year.
Here are the top states ranked by residential real estate market value:
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California – $10.2 trillion
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Florida – $3.8 trillion
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New York – $3.65 trillion
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Texas – $3.4 trillion
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New Jersey – $1.8 trillion
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Massachusetts – $1.74 trillion
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Washington – $1.72 trillion
As people continue to flock to Florida since the onset of the pandemic, cities across the state are experiencing a surge in the housing market.
According to Zillow, four out of the six metro areas in the U.S. where housing market value has seen the most growth since the start of the pandemic are in Florida. Here are those cities:
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Tampa – 88.9% increase
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Miami – 86.6% increase
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Jacksonville – 82.4% increase
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Orlando – 72.3% increase
