Home prices in Miami and Tampa have doubled since 2018 due to strong investor interest and urban development, significantly enhancing property wealth but exacerbating the housing affordability crisis for middle-income families.

Home prices in Miami and Tampa have doubled since 2018, with median home values rising from $250,000 to approximately $500,000 in 2024, among the most rapid price appreciations in the nation.

The increase is largely attributed to a high rate of investor interest and extensive urban development projects that have enhanced the appeal of the two metropolitan areas, according to a housing market report published by Point2.

“To put things into a bleak perspective, single-family homes in Tampa are now twice as expensive as they were in 2019,” the report reads.

The doubling of home prices in such a short span has brought significant wealth gains for property owners but has also introduced new challenges in the housing market. The affordability crisis has deepened, particularly affecting new homebuyers and middle-income families whose earnings have not kept pace with the escalating housing costs, the report contends. Further into Florida, cities like Jacksonville, Orlando, and St. Petersburg mirror the growth, with their home prices also doubling over roughly the same period.

Comparatively, this rate of increase is mirrored in select cities outside Florida, including Spokane, Washington, and Baltimore, Maryland, though the factors driving their market dynamics differ.

The report further asserts that a primary factor driving the rapid increase in single-family home prices over other housing types has been the pandemic. With fewer new single-family homes being built compared to multifamily units, coupled with a trend of moving away from urban centers and the availability of lower-cost loans, consumer preferences have shifted, with many prospective homebuyers adopting a “might-as-well” attitude, choosing to invest in properties that offer more space and natural surroundings.

In the rental sector, Miami-Dade County is feeling little reprieve, as it remains the hottest rental market in America. The county’s Rental Competitivity Index (RCI) — a measurement of rental market competition using factors such as lease renewal rates and occupancy rates — is 122, the highest in the country. The next highest RCI nationwide was North Jersey, New Jersey at 116, while Broward County was Florida’s second most competitive region, with an RCI score of 101.

Miami-Dade County recorded high occupancy rates in its rental properties in 2023, with 71.2 percent of renters electing to renew their leases. For those seeking new housing, each available rental unit in Miami attracted an average of 22 applicants.

Moreover, in November 2023, the rental market in Miami saw average rents reach $3,280, placing it among the costliest metro regions in the country.