Sunshine, low taxes and high-end 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 Florida cities that have emerged as the fastest growing home value markets, driven by strong demand and tight 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 shows a 1.5% increase over the past year and a 118.2% increase over five years, making Palm Beach the top spot for those looking for the biggest return on investment.

“Prior 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. “Today’s buyers are moving businesses, moving family offices, enrolling their children in local schools and integrating into the community.”

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“There is also much more institutional-level capital and long-term wealth involved compared to previous booms. Inventory remains limited, land is finite, and barriers to entry are high, making this cycle feel more structurally supported 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 optimistic optimism as a new wave of high-net-worth individuals set up families and businesses there.

“Palm Beach today is not only benefiting from a wave of migration, it is benefiting from the consolidation of wealth. We are witnessing a generational shift where capital is increasingly mobile and Florida is a strategic destination for that capital,” he said.

But he also cautioned against misconceptions about Palm Beach’s headline numbers.

“When people see 100% growth, they often assume it’s flat across the board, and that’s rarely the case. Appreciation in Palm Beach has been very segmented. Oceanfront trophy estates and prime city properties have seen extraordinary gains, while other categories may have appreciated at a more moderate rate,” explained Malinosky.

“Another nuance that is being missed is the cost of replacement. Construction costs, land shortages and development restrictions have increased dramatically,” he added. “In many cases, current values ​​reflect the real cost of recreating these assets today, not just a speculative appreciation.”

While Palm Beach offers glitz and glamour, the remaining cities on the list are smaller, quieter parts of Florida, with home values ​​around $290,000 or less.

Wauchula – a farming town about 90 minutes southeast of Tampa — ranks second, with home values ​​up 3.1% over the past year and 64.8% over five years.

Old Town, Florida, ranked third with increases of 3.2% and 48% over the one- and five-year periods. The unincorporated community is located 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 ​​up 1.2 percent over the past year and up 61.5 percent over five years, according to GOBankingRates. The city is known for its proximity to Lake Okeechobee and its quiet, close-knit community.

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Rounding out the list is Bell, a small town of less than 520 people nestled in the woods of North Florida, not far from Old Town. Home values ​​are averaging $290,622, up 1.2% from last year and up 61.5% over five years.

“Major markets like Miami or Tampa already experienced earlier, sharper growth curves and started from higher benchmarks. When measuring percentage growth over five years, smaller or less established markets can sometimes show more dramatic jumps simply because they started at a lower price,” explained Malinosky.

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