Are Home Prices Going Down in Florida?

Florida’s dynamic real estate market makes home prices a frequent topic of discussion. Understanding the underlying conditions affecting housing affordability and investment across the state provides clarity for anyone navigating Florida’s diverse housing landscape.

Current Trends in Florida Home Prices

Florida’s housing market has shown varied trends in median home prices, sales volume, and inventory levels. The statewide median sales price for single-family existing homes reached $420,000 by year-end 2024, a 2.4% rise from the prior year. Conversely, the median price for condo-townhouse units declined to $320,000 by year-end 2024, a 0.8% decrease from the previous year.

Sales volume has also seen fluctuations. Closed sales of single-family homes statewide increased by 12.8% in December 2024 compared to December 2023, totaling 20,784 transactions. However, existing condo-townhouse sales in the same month were down slightly by 0.5% year-over-year, with 7,169 units sold. For the entire year of 2024, single-family home sales saw a 1.9% decrease from 2023, while condo-townhouse sales fell by 10.5%.

Inventory levels across Florida have been on an upward trend. At the end of 2024, the supply of single-family homes stood at 4.7 months, while condo-townhouse properties had an 8.2-months’ supply. A balanced market typically maintains around six months of inventory. Active inventory reached 182,600 units in April 2025, indicating an overall increase in available homes. The typical home spent 70 days on the market in December 2024, an increase from the previous year, suggesting a lengthening sales cycle.

Key Factors Influencing Home Values

Several economic forces significantly influence home values in Florida. Mortgage interest rates play a considerable role in shaping housing affordability. Elevated rates directly increase monthly mortgage payments, impacting a buyer’s purchasing power. While higher rates can price some buyers out of the market, potentially leading to increased inventory, a reduction in rates typically stimulates buyer demand and can exert upward pressure on home prices.

Housing supply and demand dynamics are another significant factor. Florida has seen rising inventory levels across the state. This increase in available homes can lead to a more balanced market, potentially easing price appreciation. Conversely, periods of low inventory, as experienced in the past, often intensify competition among buyers and contribute to price increases.

Population migration patterns also contribute to market conditions. Florida experienced substantial population growth following the COVID-19 pandemic, which fueled demand for housing. However, net domestic migration to Florida slowed considerably in 2024, with fewer new residents compared to previous years. A deceleration in population influx can lead to a decrease in buyer demand, potentially resulting in price adjustments. This slowdown is partly attributed to rising home prices and increasing property insurance costs within the state.

Property insurance costs have emerged as a significant financial consideration for homeowners in Florida. The state faces some of the nation’s highest insurance premiums, significantly higher than the national average. These high costs are driven by factors such as frequent hurricane activity, increasing reinsurance expenses for insurers, and rising construction and repair costs. High insurance premiums can add hundreds of dollars to monthly housing expenses, which can affect affordability and influence purchasing decisions. Recent legislative reforms have been implemented to stabilize the insurance market and attract more private insurers, aiming to alleviate some of these financial pressures.

Regional Variations Across Florida

Florida’s diverse geography results in notable regional differences in its housing market. A distinct divide exists between coastal and inland areas, particularly impacting condominium markets. Coastal condominium prices have faced challenges, with some areas experiencing declining values, reportedly down by approximately 12% since their peak in 2022. This trend is largely influenced by surging property insurance premiums and increased assessment fees associated with coastal properties. In contrast, inland single-family home markets have generally maintained stability or shown modest price increases, with non-coastal ZIP codes seeing an average rise of 2%.

Major metropolitan areas also exhibit unique market characteristics. Miami, a hub for international buyers, has seen high demand, especially in its luxury segment. Prices for luxury condos, particularly those priced at $1 million and above, reached record highs in 2024. However, in July 2025, overall Miami home prices were down 8.4% compared to the previous year, with a median price of $586,000.

Orlando’s real estate market has seen varied trends. The median home price in Orlando was around $300,000 in 2024, increasing to $395,000 by January 2025, a 7% rise from January 2024. Inventory levels in Orlando have increased, and properties are spending more time on the market, reaching a 4.78-month supply in January 2024.

In the Tampa Bay area, the market has seen some cooling yet remains robust. The median sale price for homes in Tampa was $450,000 in November 2024, and $408,500 by January 2025, up 4.2% from January 2024. Tampa has experienced a significant surge in housing inventory. The average months of supply in Tampa was 5.4 months in January 2025.

Jacksonville, located in North Florida, is characterized by moderate growth and relative affordability compared to other major Florida markets. The median home price in Jacksonville reached $295,990 in January 2025, up 2.1% from January 2024. Homes typically sell after 64 days on the market, and inventory levels are considered balanced. This affordability, coupled with a stable job market, continues to attract buyers.