We conducted our own in-house 20+ acre transitional land study of price per acre in north Sumter County. We saw a significant jump in the average price per acre in 2023. However, the jump was not as large as the spike in 2005. It is too soon to tell if we can expect a market correction in the coming years. After I spoke with a few people involved in this industry in one way or another, it became clear that the general consensus is that people feel uncertain about the upcoming election and their confidence of where the country is going is wavering. Therefore, people feel that land is the safest place to invest. The spike in price per acre we are seeing is not just developer driven, it is also investor driven. Investors feel land is the best way to diversify their portfolio right now.

The University of Florida conducted a study on Florida’s housing. According to the report, more than 450,000 people moved to Florida in 2021 and 2022. Below are the key findings of the report.

  • Florida’s 5.7 million single family homes make up the largest share of the housing supply. 71% of these homes are homesteaded, indicating that they serve as the owner’s primary residence rather than second homes, vacation homes, or rental properties.
  • Florida produced approximately 125,000 single family homes in 2022. This production level is similar to the early 2000s—lower than the number of homes built during the 2004-2006 peak years, but well above the production level following the 2008 housing crash.
  • Polk County was the state’s single family construction hotspot, with 9,235 single family homes built. Of the top ten counties for single family construction, only Hillsborough and Duval were large urban counties.
  • Florida’s housing markets have returned to their mid-2000s strength. The statewide median single family home price reached $400,000 in the first half of 2023.
  • Florida rents increased steeply between 2020 and 2022, then held steady at these higher levels in 2023. Median gross rents increased 41% between July 2020 and July 2022 according to Apartment List. Median rent for housing seekers was $1,693 in July 2023, a two percent drop from 2022 but still well above 2017-2021 levels.

We will be closed Friday, March 29, 2024 in honor of Good Friday. We will resume normal business hours on Monday, April 1, 2024. We hope everyone has a wonderful Easter!

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We appreciate your business. We value your real estate needs and are honored to serve you.

 

Sincerely,

Danny Smith, ALC, CCIM

Billie Faye Smith, Broker

Cassie Cribb, Realtor®

Lauren Vick, Realtor®

(352) 748-5656

www.ccimland.com

www.smithsmithrealty.com

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