When it comes to the real estate market, location is everything. Recently, Sarasota, Florida, has been making headlines as the top housing market to watch in the United States. A study conducted by Insurify has named Sarasota as the market most "primed for success in the next few years." In this blog post, we will delve into the reasons why Sarasota is attracting so much attention and why it's the place to be in the real estate world.
A Surging Real Estate Landscape
Sarasota's rise to prominence in the real estate market can be attributed to several key factors. One of the most significant indicators of its success is the impressive 24% increase in new housing units under construction between June 2022 and June 2023. This substantial growth reflects the confidence of developers in Sarasota's housing market as the population continues to surge.
Affordability and Opportunity
Despite the perception of high home insurance costs in Florida, the mortgage-to-income ratio in Sarasota is a manageable 19.5%, which is below the national average of 23.3%. This favorable financial aspect makes Sarasota an attractive destination for both homebuyers and investors looking for affordability combined with the potential for substantial returns on investment.
Insurify's 2023 Home Market Report
Insurify's 2023 Home Market report relied on data from the U.S. Census Bureau, Zillow, and its own database of home insurance quotes to evaluate Sarasota's real estate market. According to the report, the average home value in Sarasota stands at $458,659, with average insurance costs of $3,264. These figures highlight the market's strength and stability, making it an appealing option for those looking to invest in a home.
Population Growth and New Construction
Sarasota's appeal extends beyond its housing affordability. The city has experienced a remarkable 6.9% increase in population since 2020, the second-highest among the cities included in the study. To accommodate this growth, Sarasota currently has 1,500 residential units under construction, ensuring a steady supply of new homes for its expanding population.
Comparing Sarasota to Fort Myers
Fort Myers, another Florida city, ranks fourth on the list. While Fort Myers has also seen a population growth of 8.1% between 2020 and 2022, it faces challenges in keeping up with housing demand. The report notes a 14% decrease in new units built, which has put pressure on the market. However, the average cost of homeowners insurance in Fort Myers is slightly lower than in Sarasota, at $2,568.
The National Perspective
On a national scale, the real estate market is experiencing a unique dynamic. The study highlights that investors purchased 26% of all single-family homes nationally in June 2023. This trend could potentially drive up housing costs, as the median purchase price in states where companies and corporations bought at least 13% of houses in 2021 has risen by 15%. Sarasota's steady growth offers a more stable and promising alternative to these volatile markets.
Sarasota's emergence as the No. 1 real estate market to watch is no fluke. With its impressive population growth, affordability, and robust construction activity, the city is poised for sustained success in the coming years. Whether you're a first-time homebuyer or an investor seeking promising opportunities, Sarasota's real estate market offers a compelling proposition. Keep your eye on Sarasota—it's where the future of real estate is unfolding.
