By Heather Taylor
In the search for affordable real estate, many prospective homebuyers are drawn to Florida. However, not all Florida housing markets are created equal, and some may offer a lower quality of life despite seemingly attractive home prices. GOBankingRates conducted an analysis to identify the Florida cities where potential buyers might want to think twice before investing in real estate.
The study compared average single-family home values from December 2022 to December 2023 using data from the Zillow Home Value Index. Additionally, average income figures were sourced from the U.S. Census American Community Survey, and the livability index was obtained from AreaVibes. The cities highlighted had home values below the national average and a livability index below 75.
Here are the ten Florida cities, in ascending order, where homebuyers should be cautious about purchasing property:
1. Madison, Florida
- December 2022 average home value: $178,443
- December 2023 average home value: $176,639
- Year-over-year change: -$1,804
- Average income: $21,111
- Livability index: 65
2. Micco, Florida
- December 2022 average home value: $259,122
- December 2023 average home value: $243,192
- Year-over-year change: -$15,931
- Average income: $34,982
- Livability index: 65
3. Laurel Hill, Florida
- December 2022 average home value: $179,366
- December 2023 average home value: $177,566
- Year-over-year change: -$1,800
- Average income: $28,747
- Livability index: 60
4. Palatka, Florida
- December 2022 average home value: $191,025
- December 2023 average home value: $190,559
- Year-over-year change: -$466
- Average income: $19,694
- Livability index: 55
5. Coleman, Florida
- December 2022 average home value: $180,642
- December 2023 average home value: $175,221
- Year-over-year change: -$5,421
- Average income: $20,653
- Livability index: 61
6. Westville, Florida
- December 2022 average home value: $187,528
- December 2023 average home value: $185,859
- Year-over-year change: -$1,669
- Average income: $30,200
- Livability index: 51
7. Homeland, Florida
- December 2022 average home value: $219,884
- December 2023 average home value: $210,353
- Year-over-year change: -$9,531
- Average income: $24,876
- Livability index: 52
These cities have shown declines in home values over the past year and have lower livability scores, indicating potential concerns for buyers in terms of quality of life and investment return.
Conclusion
While Florida remains a popular destination for real estate investment, it’s crucial to conduct thorough research before making a purchase. Factors such as declining home values, low average incomes, and poor livability scores can significantly impact the overall desirability and long-term value of a property. Prospective buyers should carefully consider these factors when exploring the Florida housing market in 2024.