From Boom to Correction: 5 Reasons Florida’s Housing Market Is Slowing Down

by Adam Miller

From Boom to Correction: 5 Reasons Florida’s Housing Market Is Slowing Down

For years, Florida’s housing market was booming—home prices soared, demand surged, and buyers competed in bidding wars for the best properties. But recently, things have started to cool off.

In fact, 92% of Florida’s condo markets are seeing price declines, and 66% of single-family home markets are also experiencing dips. So, what’s behind this shift?

If you’re thinking about buying or selling in Florida, it’s crucial to understand what’s happening now—and what’s coming next.

🏡 Florida’s Housing Market Shift: What the Numbers Say

While home prices are still rising in some parts of the U.S., Florida is seeing corrections, particularly in condo markets. According to recent data from ResiClub, the biggest price drops are happening in:

📉 Condo Prices Falling Most in:

Punta Gorda (-11.4%)
North Port (-8.9%)
The Villages (-8.4%)
Cape Coral (-8.2%)
Tampa (-7.9%)
Naples (-7.2%)

🏠 Single-Family Prices Dropping in:

Punta Gorda (-7.3%)
Cape Coral (-5.3%)
Naples (-2.7%)
Key West (-1.5%)
Tampa (-1.2%)

What’s causing this shift? Let’s dive into the five biggest reasons Florida’s housing market is slowing down.

1. Fewer Out-of-State Buyers Moving to Florida

During the pandemic, Florida became a top destination for people leaving high-cost states like New York, New Jersey, and California. That migration boom drove prices sky-high—Florida home values surged 51% between 2020 and 2022.

But now? That wave has slowed down.

2022: Florida saw +314,000 net domestic migrants
2024: That number dropped to just +64,000

With fewer deep-pocketed buyers entering the market, Florida home prices are now more reliant on local incomes—which can’t always support the sky-high prices seen over the past few years.

2. Skyrocketing HOA Fees and Special Assessments

If you’re considering a Florida condo, there’s an important (and expensive) factor you must consider: HOA fees.

After the tragic Surfside condo collapse in 2021, Florida passed strict structural safety laws, requiring older buildings to undergo inspections and increase reserves for repairs. The result?

📌 Huge HOA fee hikes
📌 Massive special assessments (sometimes $50K–$100K per unit)
📌 Fewer buyers willing to take on the extra cost

For many buyers, it’s simply not worth it to take on such high fees—so they’re choosing newer homes instead, leaving the condo market struggling.

3. Hurricane Ian’s Impact on Southwest Florida

In September 2022, Hurricane Ian devastated parts of Southwest Florida, causing $112.9 billion in damage—making it the third-costliest hurricane in U.S. history.

This has had lasting effects:
🏡 More damaged homes hitting the market (increasing inventory)
📉 Declining demand in flood-prone areas
💰 Soaring home insurance costs

Areas like Cape Coral, Punta Gorda, and Naples are seeing some of the biggest home price drops, as buyers reconsider the risks of purchasing in high-risk flood zones.

4. More Homes Available = Less Competition

Unlike the Northeast or Midwest, where home inventory remains tight, Florida is seeing a surge in new construction.

Builders are offering incentives, such as:
✅ Mortgage rate buydowns
✅ Lower closing costs
✅ Upgrade packages

This means buyers now have more options, and many are choosing new builds over resale homes. As a result, inventory levels are rising, giving buyers more negotiating power—a huge shift from the bidding wars of 2021 and 2022.

5. Home Insurance Costs Are Out of Control

If you own (or are considering buying) in Florida, insurance costs are one of the biggest challenges right now.

In just three years, the average U.S. home insurance premium increased 33%
But in Florida, homeowners are paying a staggering $6,000 per year—3x the national average

This is due to:
🌪️ More hurricanes & extreme weather
📈 Higher rebuilding costs
🏢 Insurance companies pulling out of Florida

With home prices still relatively high and insurance costs skyrocketing, many buyers are rethinking their decision to purchase—especially in storm-prone areas.

What This Means for You

If You’re Buying a Home in Florida:

🔹 You have more options—inventory is rising!
🔹 Be cautious of high HOA fees—they can impact affordability.
🔹 Look at insurance costs before making an offer.

If You’re Selling a Home in Florida:

🔹 Pricing matters! Overpricing could leave your home sitting on the market.
🔹 Condos are facing challenges, so expect a longer selling timeline.
🔹 Homes in non-hurricane-prone areas may hold value better.

How The 941 Lifestyle Group Can Help

At The 941 Lifestyle Group, we do things differently. We’re not just real estate agents—we’re lifestyle matchmakers.

✔️ We help buyers find communities that truly fit their needs. Whether you want a low-maintenance villa or a golf course home, we’ll guide you to the perfect fit.
✔️ We make selling simple and strategic. From staging and marketing to expert negotiations, we ensure you get top dollar in any market.
✔️ We know Lakewood Ranch, Sarasota, and beyond. Our local expertise gives our clients an edge in this shifting market.

📲 Thinking of buying or selling? Let’s chat!

📞 Call or text: 941-233-9722
📧 Email: adam@the941lifestylegroup.com

🔗 Want to dive deeper? Read the full article here:
👉 Florida’s Housing Market Correction – ResiClub

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