You’ve heard about the ramifications of Florida’s population growth on its real estate market. However, you may not know that one cause of Florida’s population boom is job growth – specifically in the tech industry.
Let’s examine the details of this tech migration to Florida. We’ll discuss how it affects property values and how the growing tech sector has improved real estate investment opportunities in a variety of niches. Finally, we will discuss what this means for those planning to enter the real estate industry in Florida.
Tech Job Migration to Florida
The Federal Bureau of Labor Statistics shows that the Sunshine State ranked eighth in the U.S. in job growth in 2023. Many of those jobs are tech jobs – from companies like Nvidia, Microsoft, and Tesla.
Those tech jobs often come with good paychecks. Software developers are in high demand in Florida. Experienced developers, especially those with skills in languages like Python, Java, C++, or SQL and frameworks like .NET or Spring Boot, may earn well over $100,000.
What does this influx of high-paying jobs mean for the Florida real estate market?
Rising Property Values in Tech Hubs
With increased demand and limited supply, home prices in Florida have increased. This trend has been particularly pronounced in Florida’s tech hubs. Here are the latest sales figures for Brevard County (which includes Cape Canaveral, Cocoa Beach, Melbourne, and Titusville), Miami, Orlando, and Tampa.
| Area | Average Home Value | Rate of Growth Over the Past Year |
| Brevard County | $348,916 | 1.3% |
| Miami | $552,046 | 7.9% |
| Orlando | $375,176 | 3.9% |
| Tampa | $368,723 | 3.7% |
Source: Zillow, February 2024
What do these numbers mean to aspiring real estate agents? According to Fast Expert, the average real estate commission in Florida is 5.53%. This means that real estate agents would make approximately $30,528 on the sale of an average Miami home. And those numbers are expected to rise.
Remote Work and Housing Choices
As a real estate agent in Florida, you also need to consider the needs of tech workers regarding housing. Of course, some tech workers are more flexible when choosing a place to live. The Bureau of Labor Statistics report released in August 2023 stated that about 1 in 5 workers worked remotely, and many of those remote workers are in the tech industry. However, even with this increased flexibility, some tech workers still prefer the amenities and cultural offerings of cities.
Regardless of the home’s location, remote tech workers prioritize features like reliable internet access, dedicated home office space, and proximity to outdoor recreation areas when choosing a place to call home.
Affordability Challenges
It’s important to consider other effects of rising home prices and increased demand for housing in Florida. The growth of the tech sector often leads to gentrification in urban neighborhoods. As tech workers move in, property values increase, displacing residents who can no longer afford to live there.
In addition, to accommodate the influx of tech workers and the growing population, developers may focus on building high-end apartments or homes to cater to professionals. This can further exacerbate affordability issues for Florida residents.
As a real estate agent, it’s vital that you understand how these trends affect the neighborhoods you serve so you can best advise buyers, sellers, and investors.
Opportunities for Investors
The growth of the tech sector can present opportunities for real estate investors. On one hand, investing in high-end properties that cater to tech professionals may be lucrative in Florida’s tech centers. However, investing in affordable housing for dislocated residents may also be a strategy of a savvy real estate investor.
One thing is clear as we look at the data surrounding tech jobs in Florida and how they affect the real estate market. More Florida real estate agents are needed. In fact, the Bureau of Labor Statistics ranked real estate as the top job sector experiencing growth. Become a real estate agent to prepare for Florida’s tech job migration.
Gold Coast Schools can help you with the Florida real estate licensing process. The first step is to sign up for pre-licensing courses. At Gold Coast, our sales associate course is offered in-person, via livestream, or at your own pace online. And when you are ready to take your broker license course, we can also help you with that.
Learn more about the Florida real estate licensing requirements by contacting Gold Coast Schools today.
Sources:
1. “Florida Ranked Eighth in the US for Job Growth in 2023 and Added Nearly a Quarter Million Jobs.” WUSF, February 7, 2024. https://www.wusf.org/economy-business/2024-02-07/florida-eighth-us-job-growth-2023-nearly-quarter-million-federal-bureau-labor-statistics.
2. Sandu, Bogdan. “Check out These Tech Companies Moving to Miami.” TMS Outsource, January 10, 2024. https://tms-outsource.com/blog/posts/tech-companies-moving-to-miami/.
3. Smart, Tim. “Remote Work Has Radically Changed the Economy – and It’s Here …” U.S. News & World Report. Accessed February 23, 2024. https://www.usnews.com/news/economy/articles/2024-01-25/remote-work-has-radically-changed-the-economy-and-its-here-to-stay.