Sunshine state irresistible to buyers in 2022
A new NAR analysis found that Florida led the way in population growth in 2022, with net migration far exceeding that of runner-up Texas.
Key points:
- Relatively lower prices in metro areas like Miami created strong activity in 2022.
- California and New York had the biggest net migration losses, followed by Illinois.
While many markets across the U.S. grew cold last year, sunny Florida managed to buck the trend and accomplish something it hadn't done in 65 years.
Florida was the fastest-growing state in 2022, adding 1.9% to its population, according to Nadia Evangelou, director of real estate research for the National Association of Realtors. Evangelou said the last time Florida led the nation in annual population growth was 1957.
In her latest report, based on U.S. Census data, Evangelou found Florida's net migration last year topped 318,000, finishing ahead of Texas, which welcomed 230,000 new residents. Those two states were the only ones to top 100,000 in domestic net migration.
"With most of these fast-growing areas located in the South, this region continues to be the most populous region, with nearly 130 million residents," Evangelou said.
At the other end of the spectrum, California residents were packing their bags. The state experienced the highest amount of net outflow, with a total loss of more than 343,000 people, followed by New York with a loss of nearly 300,000. Illinois was the only other state with losses topping 100,000, coming in at nearly 142,000.
This latest report found trends similar to other recent studies tracking moves in 2022, including from U-Haul and Redfin.
Florida's popularity has been strong throughout the pandemic. Evangelou noted that the Miami metro area experienced the largest inbound population gains across the country since 2019. Scranton, Pennsylvania; the Minneapolis-St. Paul-Bloomington metro; Colorado Springs and Cleveland were also high on the list.
The Miami Realtors association reported that 2022 was the second-busiest year ever in terms of sales (after 2021), with more than 31,000 transactions. Condominium sales played a big role, with more than 19,000 units sold in 2022.
The association also reported Miami's median price of homes sold was $570,000, significantly less than other large coastal metro areas like San Francisco ($1.3 million median price in 2022), San Diego ($900,000) and Los Angeles ($893,200).
That price point could be a factor in a strong 2023, along with favorable market conditions. Total active listings at the end of December 2022 increased 18.9% year-over-year, according to the report.
"Homebuyers who decide to buy in 2023 will find relatively more supply in the market and face less buyer competition. Expect a more active housing market in the second half as those properties start to get snapped up," said Miami Realtors Chief Economist Gay Cororaton.