Florida's Land Market Reflects Broader Real Estate Shifts as Buyers Seek Multi-Generational Properties

Written by:

Steve Marcinuk

Date:

28 Jun 2025

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Florida’s land market is experiencing notable changes as buyers increasingly seek properties that can accommodate multiple generations, while traditional investment patterns shift in response to evolving market conditions. These trends reflect broader changes in how families approach real estate ownership and wealth building in one of the nation’s fastest-growing states.

The Rise of Family Compounds

A significant trend emerging across Florida’s land market is the growing demand for properties that can support multiple family members across generations. Donna Suchocki, a ranch and residential sales and investment specialist with Keller Williams Realty who has worked in Florida real estate for 28 years, observes families actively seeking larger parcels specifically for this purpose.

“There’s a lot of interest in buying land, and what I find the most of is families wanting to buy land and build multiple homes on them to make, in essence, like a compound for their family,” Suchocki explains. “Parents and children living on the same property in separate houses.”

This trend typically involves families purchasing five-acre parcels that can be subdivided to accommodate two homes, though local zoning regulations vary across Florida’s counties. Some areas require one house per five acres, while others allow one house per acre with adequate road frontage. For larger properties, the approach becomes more creative, sometimes building one main home and several tiny homes on a single property.

Geographic Migration Patterns

Internal migration within Florida reveals interesting buyer preferences. According to referral data tracked through Keller Williams, one of the most frequent movement patterns occurs between Orlando and Tampa.

“People move to Orlando, or even from out of state, they moved to Orlando and then realized that the Tampa area is better just because Orlando is so congested with Disney being over there,” Suchocki observes. The Tampa area offers better access to beaches and less congestion, making it attractive to those initially drawn to the Orlando market.

Investment Holding Strategies

Florida’s land market is also seeing increased interest from investors focused on long-term wealth preservation. The state’s limited land availability creates a compelling investment thesis for those willing to hold properties over extended periods.

“We’re a small, fairly small, skinny state, and the land is, quite frankly, dissipating,” Suchocki explains. “To buy a piece of land here, eventually it’s going to get built on by somebody. So if you hold on to it long enough, somebody is going to pay a lot of money for it.”

This dynamic has attracted institutional investors as well. “We have a lot of land acquisition companies that are buying here. And then a lot of our central Florida land is owned by attorneys, and obviously the counties,” she notes.

Market Corrections and Interest Rate Sensitivity

Like other real estate sectors, Florida’s land market has been adjusting from pandemic-era price increases. “The values have been correcting for the last couple of years because they were inflated during COVID,” Suchocki observes. “Everybody was saying the sky is falling and the market was going to crash, but really it was just correcting.”

Current market conditions show increased inventory levels, creating more favorable conditions for buyers. “We’re swinging into a buyer’s market now, because the inventory is higher than it has been in quite a while,” she explains.

Interest rates remain a critical factor influencing market activity. “When the interest rates go down, our home values go up,” Suchocki notes, adding that lower rates would likely bring more buyers into the market and positively impact property values.

Changing Ownership Patterns

The market is also experiencing shifts in ownership patterns driven by demographic changes. International buyers, particularly Canadians, are reducing their Florida holdings due to increased border crossing difficulties since recent policy changes.

“The people that are out of country owners are starting to sell because it’s becoming more difficult for them to get to and from the States,” Suchocki explains. “We’re finding a lot of Canadians that are selling because they’re just tired of being hung up at the border.”

Additionally, intergenerational wealth transfer is creating selling opportunities as inherited properties come to market. “Unfortunately, because we’re a retirement state, you’ve got people that are passing away, and then the kids get the family home or the land,” Suchocki observes. “The kids get it, and many of them just sell it. They’re not interested in keeping it.”

Short-Term Rental Adaptations

Local governments are adapting regulations to accommodate growing interest in short-term rental investments. “We’ve got three of our major counties that are now changing their short term rental laws to better accommodate these people that want to buy and have an investment property here,” Suchocki notes.

These regulatory changes allow for more flexible rental periods, including daily or seven-day minimums, making land purchases more attractive for investors seeking rental income opportunities.

Specialized Property Segments

Florida’s equestrian property market remains robust, supported by the state’s position as a major cattle-producing state and its concentration of horse-related facilities. The Tampa Bay area benefits from proximity to Ocala, often called the horse capital of the world, and local facilities like Tampa Bay Downs racetrack.

This specialized market segment continues to attract buyers seeking properties suitable for boarding facilities, training operations, and private equestrian use.

Looking Forward

The Florida land market appears positioned for continued evolution as demographic trends, regulatory changes, and economic factors converge. The combination of limited land availability, growing population, and changing family structures suggests sustained demand for properties that can accommodate multiple uses and generations.

As interest rates potentially decline and inventory levels stabilize, the market may see renewed activity from both individual buyers seeking family compounds and investors recognizing Florida land’s long-term value proposition. The state’s ongoing appeal as both a retirement and vacation destination ensures continued pressure on available land resources, supporting the investment thesis for those willing to hold properties over time.

For buyers and investors, understanding local zoning regulations, infrastructure development patterns, and demographic trends will be crucial for making informed decisions in Florida’s evolving land market.