Florida’s housing market continues to captivate buyers with its unique blend of lifestyle perks. The Sunshine State’s warm climate, beachside living, and vibrant cultural scene draw people year-round. Importantly, Florida’s lack of state income or estate tax is a major lure for retirees and high-income professionals alike. Commentators note that Florida in the 2020s “is the California of the 1950s,” as massive in-migration drives long-term demand. No surprise that Florida has ranked among the fastest-growing U.S. states for net new residents in 2024. All of these factors – the year-round sunshine, an active lifestyle, attractive tax policies, and steady population inflows – underpin Florida’s enduring real estate appeal.
National vs. Florida Market Trends (2024–2025)
Across the U.S., housing trends in 2024–25 have been shaped by rising mortgage rates and limited inventory. Nationally, home prices have continued modest growth: the NAR reports the U.S. median existing-home price at about $402,300 in Q1 2025 (up ~3.4% from a year earlier). Redfin’s 2025 forecast similarly calls for a ~4% rise in national home prices. Mortgage rates, however, remain at multi-year highs – roughly 6.8–6.9% for a 30-year fixed in early 2025 – keeping many buyers on the sidelines. Nationally, total inventory is still tight: unsold supply is roughly a 4.4-month supply as of April 2025, up from historic lows but well below balanced-market levels.
Florida’s market has softened slightly relative to the booming pandemic years. Statewide, median prices for existing single-family homes have eased a bit. Florida Realtors report the April 2025 median sale price at about $412,700 (down about 4% from last April). Overall, Florida values sit just above the national median. Importantly, Florida’s inventory has grown faster than the national average.
Florida had roughly a 5.6-month supply of single-family homes in April 2025, versus about a 4.4-month U.S. supply. In other words, buyers in Florida are seeing more options, especially with many new constructions completed. Demand has been dampened by affordability: when rates jumped above 7%, Florida sales slumped, and prices plateaued. Fortunately, recent declines in mortgage rates (back down near 6–7%) and more sellers listing homes are easing pressure. Analysts expect that this extra supply, combined with any rate relief, will boost the Florida housing market in 2025.
Regional Market Snapshots
Miami’s market is known for its luxury condos and international buyers. As of mid-2025, Zillow reports the average Miami home value to be around $589,000, roughly flat year-over-year (+0.2%). The city’s inventory is healthy: roughly 6,357 homes were on the market in May 2025. South Florida’s multiple offers have cooled: Miami homes now sell in around 45 days on average. Despite this moderation, Miami remains an expensive market – median prices are well above the national average, driven by strong demand from foreign and coastal buyers.
Orlando’s market – anchored by theme parks and tourism – has held up better. Redfin data show Orlando’s median sale price at about $427,000 in May 2025, up 5.4% from a year ago. Homes there are moving in roughly 50 days on the market. Orlando’s supply is moderate: around 4,200 homes were listed for sale in late May. Sales volume has dipped, but prices have still risen, suggesting a market where supply is loosening but values have some support from local population growth.
The Tampa Bay area remains one of Florida’s more affordable coastal metros. Zillow lists Tampa’s typical home value at about $379,000 (a 3.7% drop year-over-year through May 2025). Tampa’s active inventory was about 2,917 homes, and homes there spend ~23 days pending. Redfin shows a higher median (~$460K) when including certain suburbs, but broadly, Tampa’s growth has slowed. Nonetheless, Tampa’s larger size and economic diversity mean it continues to attract buyers.
Jacksonville and Northeast Florida offer relative affordability. Jacksonville’s average home value is around $291,000 as of May 2025, down ~3.4% from a year ago. Nearly 5,790 homes were on the market there in May. Properties take roughly 62 days to sell. North Florida (beyond Jacksonville) is similar: areas like Tallahassee and Pensacola maintain modest pricing and appeal to families, retirees, and local workers.
Market Drivers and Wild Cards
Several overarching factors shape Florida’s real estate market in 2025, and understanding them is key to making informed decisions:
- Mortgage Rates: Recent fluctuations have tested buyers’ resolve. Although rates have eased from 2023 highs, affordability remains a concern for many.
- Insurance Costs: Hardly a dinner party in Florida goes by without someone lamenting their homeowner’s insurance premiums. Weather risks and insurance market volatility have made due diligence more important than ever.
- Taxes and Policy: Florida’s lack of a state income tax remains attractive, but local taxes and fees can vary significantly by county. Additionally, recent legislative actions regarding development and zoning are worth tracking.
- Climate Risks: Rising sea levels and hurricane threats are front-and-center for coastal buyers. Many are seeking elevation or looking just inland to hedge against future risks.
- New Construction: Even as construction materials costs remain high, new communities are sprouting up from the Panhandle to SW Florida, catering to everyone from first-time buyers to retirees.
Behind Florida’s building boom is the critical role of construction management, which ensures homes are built safely, on time, and following local codes. In Florida, this oversight is especially important due to hurricane standards, flood risks, and energy efficiency requirements. For buyers considering new builds, understanding the construction process can help in choosing reliable developments.
Buyer Demographics: Who’s Moving In
Florida’s buyers are a diverse mix. The state has a notably older population than average: Florida’s median age was about 42.6 years in 2023 (vs. ~38 nationwide), reflecting its status as a retirement haven. Seniors contribute steady cash-driven demand for Florida homes. Younger families also play a key role, especially in suburban markets.
Professionals and remote workers are another important group. Florida has actively attracted corporations and tech firms, and the net migration of businesses into Florida was the highest of any state in 2023. Remote-work migration has favored Florida, too, with many relocating from high-tax states like New York and California.
International buyers continue to be a cornerstone of Florida real estate. The largest share of international buyers comes from Canada, followed by Argentina, Colombia, Brazil, and the U.K. These buyers often purchase in South Florida and Palm Beach, seeking tax efficiency, luxury, and a warm climate.
Design and Lifestyle Trends
Florida homebuyers have specific style preferences driven by the climate and risk factors. A key trend is seamless indoor–outdoor living. Covered lanais, screened patios, and outdoor kitchens are standard features. Pools and resort-style backyards remain popular.
Resilience is a must. New homes include hurricane-resistant windows, reinforced roofs, and elevated foundations in flood zones. Energy efficiency and smart technology are also mainstream: many homes include solar panels, smart thermostats, LED lighting, and Energy Star appliances. Smart-home integration (app-controlled security, climate control) is highly sought after. In short, Florida homes combine lifestyle luxury with practical resilience.
How to Navigate the Local Market
Buying property in Florida isn’t just about tracking price trends—it requires a deep understanding of hyperlocal factors such as neighborhood character, school district performance, flood zone designations, and planned infrastructure or zoning changes. Local expertise is crucial in making informed decisions. Many buyers turn to regional real estate agents like Square Foot Homes, one of Palm Beach County’s realtors, who are familiar with the unique dynamics of specific cities and counties. These agents can offer insights into inventory fluctuations, local regulations, and subtle community differences that national listing platforms may miss.
In addition to working with local professionals, buyers can benefit from tools such as county property appraiser websites, local multiple listing services (MLS), city planning department updates, and neighborhood-specific forums or Facebook groups. Visiting neighborhoods in person, attending open houses, and speaking with residents can also provide a clearer picture of what it’s like to live in a given area. Together, these strategies help buyers find properties that align with both their lifestyle goals and long-term investment priorities, while minimizing surprises after the purchase.
Buyer and Seller Insights for 2025
For Buyers
While Florida’s housing market has cooled somewhat from its pandemic-era frenzy, buyers should know that competition remains strong—particularly for move-in-ready homes in desirable areas. Being prepared is key. Buyers are advised to secure mortgage pre-approval early and stay ready to act quickly when the right listing appears. Flexibility also helps: expanding your search to nearby or emerging neighborhoods can uncover opportunities that offer long-term upside. For first-time buyers, especially, targeting areas showing signs of revitalization or planned infrastructure investment may provide strong value over time.
For Sellers
Although market dynamics have shifted, sellers still hold a degree of leverage, especially if their home is well-priced and well-presented. In today’s environment, accurate pricing is crucial, as overpricing can cause listings to stagnate. Sellers should work closely with agents to assess comparable sales, make targeted repairs, and consider staging to help their home stand out. While the months from May through August typically bring the most activity, timing a sale based on local supply levels and buyer interest may offer an edge in 2025’s more nuanced market.
2025–2026 Market Outlook
Looking ahead, most forecasts call for a more balanced Florida market in 2025–26. Zillow predicts U.S. home values will dip slightly (–1.4%) in 2025, while Redfin expects modest price growth (+4%). The National Association of Realtors projects a median home price rise of roughly 2%, with 30-year mortgage rates settling near 6%.
Locally, Florida experts expect the combination of moderating rates and growing inventory to support stable demand. Affordability remains a constraint, but in-migration and strong fundamentals give Florida’s market resilience. Analysts forecast that Florida housing will stabilize – with low-to-mid single-digit price growth, balanced supply, and more rational competition across most metros.