Floridians with houses in the ritziest neighborhoods, such as Coral Gables and Naples, are witnessing the nation’s largest rises in real estate wealth, as markets in the Sunshine State overtake those in California and New York at the top.
In the US overall, the typical home price has increased by the most for any comparable period since 1979
Before the pandemic, California had six of the country’s ten most expensive neighborhoods, while Florida and New York City both had two. According to Zillow Group Inc. data, seven are currently located in Florida, with three in California’s Beverly Hills and Malibu.
These are just a few of the changes that have occurred in the United States real estate market over the last four years. In the United States, the average home price has climbed the greatest in any comparable period since 1979, partly reflecting a lack of supply as homeowners grew reluctant to surrender lower-rate mortgages.
According to quarterly Federal Housing Finance Administration data, home values at the end of 2023 increased by about 50% from 2019. However, for some homeowners in the country’s most wealthy communities, price increase resulted in significant wealth gains, while others received far less.
The current entry point for moving to a top neighborhood is $1.3 million
According to Zillow data, the average home in the 1,000 most expensive US communities ranged in price from $1.1 million to $10.6 million as of February 2020. The current entry point for moving to a top neighborhood is $1.3 million. A home in the country’s most expensive neighborhood, Gables Estates in Coral Gables in Miami, costs more than $21.1 million.
Four years ago, the most expensive neighborhood was Beverly Hills Gateway, with an average property valued at $10.6 million. Today, residences there cost somewhat just under $12 million.
However, the 12% gain was swamped by some of Florida’s most expensive locations. The average price of a home in the Naples area of Port Royal has risen by nearly 80%, from $9.7 million to $17.4 million, giving homeowners millions in additional home equity.
Four years ago, the average home in Beverly Hills Flats neighborhood, close to Beverly Hills Gateway, was worth slightly less than $8.5 million, making it the country’s fifth most expensive neighborhood. While the average price has grown to $9.6 million, the Flats neighborhood still ranks seventh among the country’s most expensive locations.
New York City fell well outside the top 10
New York City fell outside the top ten overall. The West Village placed sixth in 2020, with an average price of $6.4 million, while the Upper East Side ranked tenth at $5.6 million.
However, West Village home prices have plummeted 8.2% to around $5.9 million, while Upper East Side home values have fallen 26% to $4.2 million, according to Zillow data.
Manhattan property prices are down 14.4% from four years ago. According to Redfin, the median property price in February was $1.04 million, down from $1.21 million in February 2020.
According to the Redfin post, almost three out of every ten Manhattan residents looking for a property wanted to leave the city. Miami was the most popular destination, followed by Washington and Philadelphia.