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Florida Real Estate Wire - Real Estate News > Broward County Florida > Florida’s Housing Market: From Boom to Bust

Broward County Florida

Florida’s Housing Market: From Boom to Bust

Empty Florida homes.

Florida’s once-booming housing market is now facing a significant downturn, characterized by declining home prices and a surge in available inventory. This shift marks a clear correction after years of rapid appreciation, driven by a confluence of factors including affordability issues, rising insurance costs, and a slowdown in migration.

Florida’s Housing Market Takes a Turn

After years of unprecedented growth, Florida’s housing market is experiencing a notable reversal. Once a magnet for new residents and investors, the Sunshine State is now seeing home prices fall and inventory rise, signaling a shift from a seller’s to a buyer’s market. This correction is particularly evident in the condo sector, where prices are falling in 92% of tracked metro areas, and two-thirds of single-family markets are reporting year-over-year declines.

Key Takeaways

  • Price Declines: Florida has seen a statewide price decrease of -0.3% in March 2025, with some areas like Cape Coral experiencing a 6.5% drop year-over-year. Martin and Indian River counties also saw median sale price decreases in March.
  • Soaring Inventory: The number of active home listings in South Florida’s tricounty area has quadrupled since 2022, reaching nearly 52,000 in April. This surge in supply is a major factor in the market’s cooling.
  • Affordability Crisis: Rapid price appreciation outpaced wage growth, making homeownership unaffordable for many Floridians. The median home price of $395,000 is a significant hurdle.
  • Rising Costs of Ownership: Skyrocketing homeowner insurance premiums, increased HOA fees, and higher mortgage rates are adding substantial financial burdens to homeowners.
  • Migration Slowdown: The influx of new residents that fueled the pandemic-era boom has significantly slowed, reducing demand for properties.
  • Regulatory Changes: New building safety regulations for condominiums, enacted after the Champlain Towers South collapse, have led to higher costs for condo owners, further impacting the market.

Factors Contributing to the Downturn

Several interconnected factors are driving Florida’s housing market correction:

  • Post-Pandemic Migration Reversal: Net domestic migration to Florida dropped by over 75% from its 2022 peak, significantly weakening demand.
  • Insurance Affordability Crisis: Florida homeowners face some of the highest insurance premiums in the nation, with annual costs exceeding $10,000 in some areas. This adds a massive, unpredictable cost to homeownership.
  • Regulatory Fallout: New building safety regulations, particularly for older condo buildings, have resulted in significant special assessments and increased monthly dues for homeowners associations.
  • Surge in New Supply: Developers aggressively ramped up construction during the boom, and these new homes are now entering the market as demand wanes, creating an oversupply.
  • Hurricane Ian’s Lingering Effects: The 2022 hurricane caused extensive damage, leading to a flood of damaged inventory and increased rebuilding costs, further depressing valuations in affected areas.

Markets at Risk

While the downturn is widespread, some areas are particularly vulnerable:

  • Winter Haven, FL: Flagged as one of the top five most at-risk markets nationally for price declines.
  • Tampa, FL: Ranked as the #4 most at-risk market, despite a slight recent uptick in median prices.
  • Fort Myers, FL: Saw a 5.3% price decline.
  • Punta Gorda, FL: Experienced a 4.1% price decline.
  • Sarasota, FL: Noted a 3.6% price decline.

Even traditionally strong markets like Miami and Orlando are seeing narrowing price gains, indicating that the headwinds are strengthening across the state.

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What This Means for Buyers and Sellers

For prospective buyers, the increased inventory and softening prices could present opportunities, but caution is advised. Sellers, on the other hand, need to be realistic about pricing and market conditions. The days of rapid sales and multiple offers are largely over. For current homeowners, especially those who bought at peak prices, riding out the correction is often the best strategy if they do not plan to move.

Sources

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