Florida’s A Winner For Return On Investment

ATTOM data shows metro areas across the state fared well in many metrics

Steve Goode

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Two Florida metropolitan areas are among the best when it comes to return on investment in housing.

Fort Myers, at 85.4%, and Port St. Lucie, at 84.8%, were the fourth and fifth hottest markets, respectively, for return on investment in areas with populations over 200,000.

According to ATTOM, a leading nationwide curator of real estate data, in its year-end 2022 home sales report published in January, home sellers nationwide realized a profit of $112,000 on a typical sale, up 21%, from $92,500 in 2021 and 78%, from $63,000 in 2020. The profit figure marked the highest level in the U.S. since at least 2008.

Prices were also up at least 10% in more than half the country, according to ATTOM, as most markets again hit new highs. All but two of the 157 markets saw median prices rise and median values shot up 10% in 85 of those metros. The median home price hit $330,000, an all-time high.

Florida scored the top five in the biggest year-over-year increases, led by Naples, up 26.9%, Fort Myers, up 26.7 %, Lakeland, up 25.7%, Port St. Lucie, up 24.6% and Ocala, up 23.8%.

Two Florida metros also factored into the largest median price increases in geographical areas with a population of at least 1 million people. Tampa led the way at 21.9%, with Orlando in fourth place, up 17.7%

According to ATTOM, Florida also scored nine of the top 10 increases in returns on investment. Fort Myers came in at the top, with ROI increasing from 51% in 2021 to 85.4% in 2022.The remainder were: Ocala, 49.7 % ROI to 82.4%; Naples, 44.7% to 77.4%; Port St. Lucie, 62.8% to 84.8%; Miami, 42.9% to 64.1%; Orlando, 42.2% to 62.2%; Tampa, 53.8% to 73.8%; and Jacksonville, 43.7% to 58.4%.

So the news wasn’t as bad as it seemed at the end of 2022, but Rick Sharga, ATTOM's executive vice president of market intelligence, did echo the old saying that all good things must come to an end.

“It seems pretty likely that home seller profits peaked for this cycle in 2022,” Sharga said. “Median prices have declined since mortgage rates doubled between January and October and are likely to decline further in many markets across the country in 2023, reducing profitability for home sellers.”