Residential growth in Volusia County helps all property value surge 24% to $85 billion

The total just value of all property in Volusia County has reached a record high — $84,888,320,637.

The figure represents a massive 23.7% year-over-year increase and reflects not only the area's increasing cost of living, but also a great demand for housing, particularly in 2021, a year when many northerners unhappy with COVID-19 lockdowns sought sunnier climes with fewer restrictions.

Volusia County Property Appraiser Larry Bartlett released his final tax roll summary for 2022 on Friday.

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"We've got nice weather, 47 miles of beach, a lot of demand and limited supply and when you have that, prices go up," Bartlett said. "We just reflect the market and the market tells us a lot of people want to come here and have a business here."

Volusia's nearly $85 billion in value jumped from $68.6 billion. It is the largest percentage-based increase since 2006.

Bartlett has suggested the reason for the jump was a growing demand for people to live in Volusia County.

The county's population grew by 12% between 2010 and 2020, Census data show.

The latest Census projection, as of July 1, 2021, put Volusia's population at 564,412.

Volusia's population is expected to grow at a progressively slower pace, according to an annual projection made by the University of Florida Bureau of Economic Research. The county will expand by nearly 5% between 2021 and 2025, and from there the projection has it growing to 687,900 by 2050.

On the eastern side of Volusia County, new construction sales pitches mention "sandy beaches along the Atlantic coast for boating, fishing, watersports and more." New homes in West Volusia often plug a closer proximity to Orlando, with Interstate 4 access.

Among Volusia's cities and towns, rural Oak Hill saw the highest increase in value, 25.39%, with Deltona finishing a close second at 25.38%.

Not the same housing bubble as before, but demand may cool down

Both Bartlett and his chief deputy, Jan Cornelius, said the housing market in 2021 was smoking hot.

"Last year we had a situation where people were bidding on houses. Basically, you might have 10 bids for a single home, which might result in a sale $50,000 over list price," Cornelius said.

She drew a comparison to the housing bubble that grew and grew in 2004, 2005 and 2006 as borrowing standards and interest rates were lowered until bursting with the Great Recession starting toward the end of 2007 and with the collapse of several investment banks that were left holding devalued subprime mortgages.

"I purchased a home in 2004. I remember how quickly houses were going, but I don't remember multiple offers and bidding for homes," Cornelius said.

Bartlett said an exodus from northern states that had been locked down in 2020 and into 2021 during the pandemic "could be part" of the reason for the surge in demand for Florida housing. He mentioned another possibility.

"In today's marketplace, people — well-to-do people — can pretty much work from anywhere. Why not live someplace where it's warm and there's no income tax?" he said. "I can see why people are moving here from New Jersey and Illinois."

However, the great demand of 2021 has cooled this year, leading to property appraisers to anticipate a slower pace of growth on the 2023 valuation, as interest rates have increased.

"I think it's going to be leveling off," Bartlett said. "We're not in the bubble situation that we had in 2008 or 2009, but interest rates are going to have the impact the Fed wants it to have. They want to slow down inflation and they're going about it the right way."

Rob Formica, a New Smyrna Beach resident since July, is renting and looking for a more permanent home in Florida.

Formica, who retired from the U.S. Army after seven years recently, is married and has a child on the way. Originally from Bucks County, Pennsylvania, he said his military career took him to Georgia, Florida, Arizona, Texas, Virginia and Louisiana.

Florida is the place he chose to be.

"I didn't want to go back to Pennsylvania after the service," he said, noting that he has family in Florida but adding a couple of other reasons.

"The climate and the political climate. Florida is an overall happier state," he said. "Everybody waves in Venetian Bay. Everybody is friendlier."

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This article originally appeared on The Daytona Beach News-Journal: Value of all property in Volusia County makes huge jump to $85 billion