Sarasota, Florida, has claimed the coveted position of top real estate market to watch. This vibrant city is witnessing a surge in residential development, with approximately 1,500 residential units currently under construction, adding to the inventory for its growing population.
What sets Sarasota apart is its remarkable population growth of 6.9% since 2020, the second-highest among all cities on the list. This population influx reflects the city’s undeniable appeal and potential for real estate appreciation.
Greensboro, North Carolina, holds the second spot on Insurify’s list, with the most substantial year-over-year increase in new housing developments, a staggering 148%. However, it’s worth noting that Greensboro lags behind other cities on the list in terms of new housing developments per homeowner, making it essential for prospective homebuyers to act swiftly in this competitive market.
In the midst of a challenging real estate housing market characterized by high mortgage rates, low inventory, and stagnating or declining home values in some regions, Sarasota shines as the #1 real estate market to watch in 2023, as indicated by Insurify’s research and analysis.
Key Trends Shaping the Housing Market in 2023 The Sun Belt states, including cities in Florida, North Carolina, and South Carolina, continue to be promising destinations for new homebuyers. These regions dominate the top 20 cities with home markets to watch, and Sarasota stands out as the most promising of them all.
Factors to Consider While Sarasota tops the list as the #1 market to watch, it’s essential to consider certain factors before making a move. Florida regions, including Miami, Sarasota, and Fort Myers, have some of the highest home insurance rates compared to other cities on the list. Potential homeowners must be mindful of the elevated cost of home insurance in Florida when planning their purchase.
Why Sarasota Stands Out To identify the housing markets primed for growth, Insurify’s analysts considered factors such as average home value appreciation, year-over-year increase in new housing units, the ratio of new housing units to homeowners, and population changes. Sarasota’s statistics in these areas make it an undeniable leader:
- New Housing Units per 100K Homeowners: 218.37
- Average Home Value: $458,659
- Population Change (2020–2022): 6.92%
Despite the higher cost of home insurance in Florida, with Sarasota residents paying 80% more than the U.S. annual average, the city’s affordability remains a driving force behind its booming real estate market. The metro area boasts a favorable mortgage-to-income ratio of 19.5%, compared to the national average of 23.3%, as reported in Q1 2023 by the National Association of RealtorsⓇ.
Additionally, the number of new units constructed in the metro area has surged by 24% between June 2022 and June 2023. With ample undeveloped land, Sarasota has the potential for further expansion. Prospective buyers should act swiftly, given that the metro area’s population has soared by nearly 7% between 2020 and 2022, compared to the national growth rate of 0.6%.
Sarasota’s central location, nestled between Tampa and Fort Myers, offers residents an array of locally owned restaurants and family-friendly entertainment, all set against a stunning natural backdrop. From Siesta Key Beach to Myakka State Forest, outdoor enthusiasts will find numerous recreational options in this vibrant city.
Sarasota, Florida, emerges as the #1 real estate market to watch in 2023, with its impressive population growth, robust residential development, and favorable affordability factors. This Gulf Coast gem is primed for success and deserves the attention of prospective homebuyers seeking a thriving real estate market.
Ascendia Group specializes in real estate and investment properties in Sarasota and Manatee Counties.
