Something Different: It’s a Buyers Market in Florida
Category: Retirement Real Estate
August 26, 2025 — In the throes of the Covid pandemic five years ago the Florida real estate market exploded. To escape cities and live someplace warm, home buyers came from all over the states and foreign countries. They often paid way more than the asking price, many times never even setting foot in them before they closed. Today it is a far different story.
There are many different reasons why, but the upshot is that the Florida market is now saddled with a 10 month supply of homes. That’s the most since 2011. In 2Q 2025 the number of available listings statewide (73,225) was nearly 25% higher than a year before. That has had a corresponding effect on prices. According to the Florida Realtors Trade Association the median sale price of condos and townhouses has fallen 6% over the past year, to $310,000.
As for the reasons for the glut, one of the biggest is the new condo laws that went into effect after the tragic Surfside building collapse near Miami in 2021, which killed 98 people. Buildings over 30 years old and 3 stories or more now have very strict inspection requirements. Reserve requirements for developments also became more stringent, forcing many HOAs to make up for years of serious underfunding. Both of these factors have led to dramatic increases in Homeowner Association fees, which have in turn caused many owners to put their homes on the market, increasing inventory and lowering prices.
Insurance is another huge problem for the market. Natural disaster after disaster has caused insurance rates to double in just a few years, and that is if you can get coverage on your home. (Editor’s note: Our FL HOA fees have jumped 224% since 2020, mostly due to insurance, building repairs, and new reserve requirements).
There are still more reasons why the FL real market is so soft of late. Foreign buyers, who account for 21% of Florida home sales, are still flocking to the Sunshine State. But that future is uncertain. Canadian buyers are not so sanguine about buying in the U.S. thanks to Trump Administration rhetoric and crackdowns. Residents of other countries may feel the same. Hurricanes and floods are frequent and scary enough that some residents are wary of owning a home and living there. Florida’s aggressive culture war initiatives are dissuading some buyers as well.
Florida has a long history of boom and bust
Over the last 100 years Florida has seen many cycles of boom and bust. In 2007 and 2008, the most recent example, the real estate market almost collapsed. It recovered, and prices have soared since then. Given its warm climate and wonderful beaches, the State will surely survive its current problems, although there will be some pain along the way. In the end more homes will get built, and prices will go up.
Comments on "Something Different: It’s a Buyers Market in Florida"
Admin says:
Two more factors for a slowing of the housing market, although they are not confined to Florida. One is uncertainty. People are anxious that tariffs and turmoil at the Fed and Bureau of Labor Statistics could lead to a potential slowdown of the economy. Related to that are interest rates. Many homeowners have mortgages with relatively low interest rates. But if they sell and move to another home, their new mortgage could have an interest rate a few points higher than the one they have now.