Florida’s once-booming housing market is now experiencing a significant downturn, particularly in South Florida and Cape Coral. Home prices are declining, inventory is rising, and affordability concerns, coupled with soaring insurance costs, are reshaping the landscape for buyers and sellers across the Sunshine State.
Florida’s Housing Market Takes a Dive
After years of explosive growth, Florida’s housing market is undergoing a notable correction. Statewide, home prices saw a negative growth of -0.8% in April 2025, a stark contrast to the national average. This shift is largely attributed to an affordability crisis, with median home prices remaining high despite recent dips, and the burden of escalating homeowner’s insurance costs.
Cape Coral Leads the Decline
Cape Coral has emerged as the epicenter of this downturn, experiencing the largest year-over-year decline in home prices among the top 100 markets, plummeting by -6.5%. Prices in Cape Coral are now back to spring 2022 levels. This rapid depreciation is a direct consequence of unsustainable price increases in previous years, coupled with current economic headwinds.
- Key Takeaways for Cape Coral:
- Significant Price Drop: -6.5% year-over-year decline in home prices.
- Return to 2022 Levels: Prices are now comparable to spring 2022.
Sources:
- Is Cape Coral the Next Florida Housing Market to Crash?, Norada Real Estate Investments.
- wsj.com, WSJ.
- Housing Scorecard: Inventory rises across South Florida, South Florida Agent Magazine.
- 5 Popular Florida Housing Markets Are at High Risk of Price Crash, Norada Real Estate Investments.
- 2 Florida Housing Markets Flagged for a Major Price Decline Risk, Norada Real Estate Investments.