Florida’s Ritziest Neighborhoods Surpass California and New York in Real Estate Wealth Growth

Florida’s elite neighborhoods, such as Coral Gables and Naples, have made a striking ascent, surpassing traditional high-value markets in California and New York. Zillow Group Inc. data reveals a significant shift: while California held six of the ten priciest neighborhoods in February 2020, Florida and New York City claimed two each. However, the real surprise is that seven of the top ten are now in Florida, with California’s Beverly Hills and Malibu barely holding on to the remaining three spots.

Over the past four years, the US real estate landscape has undergone significant transformations, impacting homeowners across the nation. Home prices have experienced the most substantial increase for any comparable period since 1979, partly due to a shortage in supply as homeowners hesitated to relinquish lower-rate mortgages. According to quarterly data from the Federal Housing Finance Administration, home values by the end of 2023 had surged nearly 50% from 2019. This led to considerable wealth gains for some homeowners in affluent neighborhoods, while others experienced comparatively modest appreciation.

In February 2020, homes in the top 1,000 most expensive US neighborhoods ranged from $1.1 million to approximately $10.6 million. Presently, the entry point for these exclusive neighborhoods has risen to $1.3 million, with properties in the priciest locale, Gables Estates in Coral Gables, exceeding a staggering $21.1 million.

Coral Gables Neighborhood Leads the Charge

The pinnacle of luxury resides in Gables Estates, where the typical home surpasses $21 million.

Notably, while the Beverly Hills Gateway neighborhood topped the list four years ago with homes valued at $10.6 million, today, prices hover just below $12 million. However, the modest 12% increase pales compared to the soaring prices witnessed in select Florida locales. For instance, in the Naples neighborhood of Port Royal, home prices have skyrocketed by nearly 80%, from $9.7 million to $17.4 million, translating into substantial gains for homeowners.

Conversely, New York City has yet to slip from its high-ranking position. The West Village, previously sixth with a typical price of $6.4 million in 2020, has seen values drop 8.2% to around $5.9 million. Similarly, the Upper East Side, which ranked tenth at $5.6 million, now stands at $4.2 million, marking a 26% decline. Overall, Manhattan has witnessed a 14.4% decrease in home prices compared to four years ago.

With nearly three in ten Manhattan residents expressing a desire to leave the city, it’s no wonder that destinations like Miami, Philadelphia, and Washington have become increasingly popular choices. The allure of these cities, coupled with tepid home price growth in Manhattan, has led to a significant exodus from the city. This trend is further evidenced by US Census data, which recorded a loss of almost 78,000 residents from Manhattan last year alone.