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Florida Real Estate Boom: Top Cities See Soaring Home Values

  //house-home.news-articles.net/content/2026/01/2 .. ate-boom-top-cities-see-soaring-home-values.html
  Published in House and Home on Wednesday, January 28th 2026 at 9:18 GMT by Travel + Leisure
      Locales: Florida, UNITED STATES

Wednesday, January 28th, 2026 - Florida remains a hotspot for real estate appreciation, a trend that has seen significant acceleration in recent years. A new study by SafeWise, utilizing data from the Federal Housing Finance Agency (FHFA), reveals the cities within the Sunshine State experiencing the most dramatic increases in home values. While the boom continues, industry analysts are increasingly cautioning potential buyers and sellers about the possibility of a market correction.

The SafeWise report identifies a clear pattern: previously affordable areas are seeing the largest percentage gains. This suggests that as major metropolitan areas across the nation become increasingly expensive, particularly on the coasts, Florida is attracting a wave of new residents seeking a better quality of life at a more attainable price point. This influx of population, combined with a continued strong demand for housing, is driving up values at a rate exceeding many other states.

Top 10 Fastest-Growing Home Values in Florida:

1. Sebring: 23.7%
2. Ocala: 22.4%
3. Palm Coast: 21.5%
4. Lakeland: 20.6%
5. Homestead: 19.8%
6. Melbourne: 18.7%
7. Kissimmee: 18.2%
8. Port St. Lucie: 17.9%
9. The Villages: 17.1%
10. Jacksonville: 16.6%

The numbers are striking. Sebring, a city in Highlands County, topped the list with a staggering 23.7% increase in home values. Ocala, known for its horse farms and outdoor recreation, followed closely behind with 22.4%. These aren't necessarily the traditionally "high-end" Florida markets; instead, they represent areas that have historically offered relative affordability. The presence of cities like Jacksonville (16.6%) in the top ten also indicates that even larger urban centers within Florida are experiencing significant growth.

Drivers of the Boom:

Several factors are contributing to this sustained growth. Florida's favorable tax climate, particularly the absence of state income tax, continues to attract retirees and remote workers. The state's warm weather and lifestyle appeal are long-standing draws, but the pandemic further amplified these advantages as people sought more space and outdoor access. Importantly, compared to states like California or New York, Florida housing remained, until recently, relatively affordable--a key factor attracting new residents.

Warning Signs and Potential Correction:

Despite the impressive growth, experts are urging caution. Steve Wilson, CEO of SafeWise, emphasizes the potential for a downturn, stating, "While the growth has been incredible, those looking to buy or sell should be aware of the potential for a downturn." Rising interest rates, coupled with increasing inventory in some areas, are creating conditions that could lead to a market correction. The rapid appreciation seen over the past few years is unlikely to be sustainable indefinitely.

Several economic indicators are contributing to this cautious outlook. The Federal Reserve's ongoing efforts to combat inflation through interest rate hikes are directly impacting mortgage rates, making homeownership less accessible. While demand remains strong, the increased cost of borrowing is beginning to cool the market. Additionally, new construction is slowly adding to the housing supply, potentially easing some of the pressure on prices.

What to Expect in 2026:

While a significant crash isn't necessarily anticipated, many analysts predict a period of stabilization or even a moderate decline in home values in certain Florida markets. The areas that have experienced the most rapid growth - like Sebring and Ocala - may be particularly vulnerable to a correction. Buyers should carefully assess their financial situation and avoid overextending themselves, while sellers should be realistic about pricing their properties. The days of guaranteed double-digit appreciation may be coming to an end, and a more balanced market is likely on the horizon.