Florida’s 2025 Housing Market Cools as Early Signs of Recovery Appear
Florida’s housing market moderated throughout 2025 as higher mortgage rates and ongoing affordability concerns slowed buyer activity across much of the state. Homes generally took longer to sell, and sales volumes softened compared to the rapid pace seen in recent years. At the same time, inventory levels increased in many markets, giving buyers more options and reducing the intense competition that previously defined Florida real estate. While prices remained elevated, appreciation slowed, and widespread price declines were limited.
Despite the cooling environment, several indicators suggest the market may be finding its footing. Mortgage rates showed signs of easing toward the end of the year, helping restore some buyer confidence and improving affordability at the margins. Population growth and domestic migration into Florida continued, though at a more sustainable pace than during the post-pandemic surge, providing ongoing support for housing demand.
International buyer activity also strengthened in 2025, with a notable increase in residential purchases compared to the prior year. Buyers from Latin America, the Caribbean, and Canada remained especially active, reinforcing Florida’s long-standing appeal as a global real estate destination. This influx helped stabilize certain segments of the market, particularly in coastal and metropolitan areas.
Overall, Florida’s housing market in 2025 reflected a shift toward more balanced conditions. While affordability challenges and interest rates remain key factors to watch, improving financing conditions, steady population growth, and renewed international interest point to the potential for a gradual rebound as the market moves into 2026.