Florida city sees double home value return as wealthy buyers consolidate fortunes in luxury markets
Palm Beach leads state's fastest-growing markets with $9.8M average home values, while smaller towns see dramatic percentage gains
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Sunshine, low taxes and luxury living continue to draw wealthy buyers to Florida — and one city in particular is reaping the rewards.
New housing data from GOBankingRates reveals the top five towns across Florida that have become the fastest-growing home-value markets, fueled by strong demand and limited supply.
In Palm Beach, homeowners have seen their property values more than double — with the average home now worth about $9.8 million. The data show a 1.5% increase over the past year and a 118.2% jump over five years, making Palm Beach the top spot for those seeking the highest return on investment.
"Previous cycles in Palm Beach were largely tied to broader economic expansions or speculative waves. What’s different this time is the permanence," Douglas Elliman Exclusive Group’s Nick Malinosky told Fox News Digital. "Buyers today are relocating businesses, moving family offices, enrolling their children in local schools, and embedding themselves in the community."
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"There’s also far more institutional-level capital and long-term wealth involved compared to prior booms. Inventory remains limited, land is finite and barriers to entry are high, which makes this cycle feel more structurally supported rather than momentum-driven," he continued.
The sun rises on Worth Avenue in Palm Beach, Florida. (Getty Images)
Malinosky echoed what many other Florida agents have said about Palm Beach’s future — expressing bullish optimism as a new wave of high-net-worth individuals establishes families and businesses there.
"Palm Beach today is not just benefiting from a migration wave, it’s benefiting from wealth consolidation. We’re witnessing a generational shift where capital is becoming more mobile, and Florida is a strategic destination for that capital," he said.
But he also cautioned against misconceptions about Palm Beach’s headline numbers.
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"When people see 100% growth, they often assume it’s uniform across the board, and that’s rarely the case. Appreciation in Palm Beach has been highly segmented. Trophy waterfront estates and prime in-town properties have seen extraordinary gains, while other categories may have appreciated at a more moderate pace," Malinosky explained.
"Another nuance that gets lost is replacement cost. Construction costs, land scarcity and development restrictions have all risen dramatically," he added. "In many cases, current values reflect the true cost of recreating these assets today, not just speculative appreciation."
While Palm Beach caters to glitz and glamour, the remaining towns on the list are smaller, quieter parts of Florida — with average home values around $290,000 or less.
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Wauchula — an agricultural city about 90 minutes southeast of Tampa — ranked second, with home values up 3.1% over the past year and 64.8% over five years.
Old Town, Florida, ranked third with 3.2% and 48% increases over the one- and five-year periods. The unincorporated community sits near the Suwannee River, west of Gainesville and just north of Manatee Springs State Park — offering more tropical nature than concrete jungle.
South Bay — the westernmost municipality in the South Florida metro area — ranked fourth, with home values rising 1.2% over the past year and 61.5% over five years, according to GOBankingRates. The town is known for its proximity to Lake Okeechobee and its laid-back, tight-knit community.
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Rounding out the list is Bell — a small town of fewer than 520 people nestled in North Florida’s forests, not far from Old Town. Home values average $290,622, up 1.2% over the past year and 61.5% over five years.
"Major markets like Miami or Tampa already experienced earlier, sharper growth curves and started from higher baseline values. When you measure percentage growth over five years, smaller or less established markets can sometimes show more dramatic jumps simply because they began at a lower price point," Malinosky explained.