High mortgage rates and property insurance costs, combined with economic uncertainty in an election year, tighter financial conditions, and extreme weather events, caused Florida’s Real Estate market to slow down last year.
But will it turn into a buyer-friendly market?
The answer could be yes, especially in certain local areas, according to Dr. Brad O’Connor, chief economist at Florida Realtors®, who addressed an audience of real estate agents at the 2025 Florida Real Estate Trends Summit last week.
“If we follow the general rule that a balanced market has between five and six months of inventory, single-family homes ended 2024 just within seller’s market territory, with 4.7 months of inventory, while condos and townhomes are already firmly in buyer’s market territory, with 8.2 months of inventory,” explained O’Connor.
The year-over-year growth in single-family home inventory was fairly consistent across the state, with most counties recording increases between 25% and 35%. Regarding condos and townhomes, active listings grew statewide by the end of 2024, although some areas experienced a greater increase than others.
“In 2024, several challenges weakened housing demand in Florida, including persistently high mortgage rates and property insurance costs,” noted O’Connor.
Florida’s real estate market was also impacted by multiple hurricanes throughout the year, from Hurricane Debby to the nearly consecutive devastation caused by Hurricanes Helene and Milton.
Additionally, other factors that affected the state’s housing market in 2024 included the fact that internal migration remains above the long-term trend but is slowing down. Job growth across the state has slowed but remains solid. Demand from international buyers has remained moderate. There are also issues affecting the condo market, particularly reserve requirements and insurability.
The sharpest declines occurred in coastal counties along the Atlantic and Gulf Coasts, while the only positive point was in the I-4 corridor, in the suburban areas between Tampa and Orlando, as well as further north in The Villages and Ocala, where condo and townhome sales grew in 2024 compared to 2023.
With the growth of new listings and the decline in sales, inventory levels in both categories—single-family homes and condos/townhomes—ended the year slightly above typical pre-pandemic levels (2014-2019).
Looking ahead to 2025, interest rates will continue to determine much of the market’s behavior, though the challenges of 2024 will remain key factors for Florida’s real estate sector in the coming months, summarized O’Connor.
Florida Realtors® represents the real estate industry in Florida, offering programs, services, continuing education, research, and legislative advocacy to 238,000 members across 50 associations, according to the organization.
