T
he island real estate market experienced astonishing price increases during the pandemic boom, exciting homeowners and sellers alike. However, these dramatic gains also left many nervous about another potential crash, reminiscent of the 2007-2009 collapse. Despite concerns, prices have held steady.

    According to Zillow, a leading online source for real estate information, island home prices are expected to rise by 1.5% in 2025. Local brokers, such as John's Island Real Estate's Bob Gibb, predict continued stability and growth in the market. "People are more optimistic going into 2025 than they have been in most other years," he notes.

    Historically, price gains in Vero Beach have been incremental, making it difficult for some to believe that a house could double in value over two years. However, data from various sources, including Douglas Elliman and ONE Sotheby's, confirms the pandemic-driven price surge.

    The bulk of the price gains occurred between late 2020 or early 2021 and spring or summer 2022. Redfin reports that the median sale price for an island single-family home doubled to $1.2 million between January 2021 and July 2022. Since then, prices have remained relatively stable, with some fluctuations.

    Zillow's home value index shows a significant increase in average island home values from August 2020 to August 2022, followed by a period of stability. Price per square foot, considered a better market indicator by many brokers, has also remained steady.

    While the average price per square foot is nearly double what it was four years ago, this metric is not an accurate gauge of value island-wide. County property records show that values range from $300 to over $2,500 per square foot in 32963, with many variables impacting the value of a home's square footage.

    Neighborhoods like John's Island and club communities tend to have higher average square foot prices due to the added value of amenities. Oceanfront homes and riverfront houses also command high prices. In 2024, a buyer paid $2,657 per square foot for an oceanfront home in John's Island.

    Homes in Windsor, Orchid Island Golf & Beach Club, and the Estate Section also command high prices. Outside gated communities, desirable areas like Riomar and Central Beach have higher prices, ranging from $500 to over $1,490 per square foot.

    The persistence of pandemic values is not limited to island houses; condos and mainland property have also held onto price gains. The rising cost of construction, desirability of the Vero market, and increased wealth during and since the pandemic support the new, higher prices for island property.