Florida Housing Market Faces Record Inventory and Declining Demand

High inventory, rising costs, and natural disaster risks are driving a significant slowdown in Florida's housing market.

Florida's housing market reached a record high of 172,209 unsold homes in January, marking a 22.7% year-over-year increase in inventory.
Condo listings are at an all-time high, with new safety regulations and rising HOA fees making ownership less attractive to buyers.
Natural disasters and soaring homeowner insurance premiums are contributing to affordability challenges and driving some residents to leave the state.
Over 41,000 home-purchase agreements fell through nationwide in January, with Florida recording the highest share of cancellations, particularly in metro areas like Orlando and Jacksonville.
Experts predict a modest price correction in Florida's overvalued markets throughout 2025, as buyers gain more negotiating power in the cooling market.