FloridaFlorida Housing Market Forecast
The Florida housing market is expected to see modest growth over the next 10 years, with home prices predicted to increase rather than drop substantially. Freddie Mac and NAR predict home prices across the U.S. will grow in 2025, with Freddie Mac expecting a 0.6% bump and NAR expecting as much as a 2% increase.
In terms of specific investment types, residential rentals are expected to benefit from high demand due to population growth, providing a steady income, although property management can be time-consuming and tenant issues may arise. New construction investments can address housing shortages and potentially offer higher returns, but they require significant capital, face regulatory hurdles, and may encounter construction delays. Vacation rentals in tourist areas can have high earning potential and offer flexibility for personal use, though they are subject to seasonal fluctuations in demand and higher management costs. Emerging markets may offer lower entry costs and high appreciation potential, but they come with higher risk and may require more research due to less developed infrastructure.
The median sale price of homes in Florida is currently around $410,700, with inventory increasing by 26.9% year over year, and closed sales decreasing by 3.5%. The median time to sale has increased by 25%, and the average mortgage rate for a 15-year fixed loan is 6.03%.
For the next 5 years (2025-2030), the Florida housing market is expected to see continued growth, with inventory increasing and prices remaining stable or slightly rising.124 This period is seen as a favorable time for buyers, given the increasing inventory and decreasing prices.
The market saw a 10.5% decrease in condo and townhouse sales in 2024, which was the lowest number of such sales since 2010. However, the overall trend indicates a seller’s market for single-family homes, with a 4.7-month supply of homes available.
In summary, the Florida housing market is expected to remain robust over the next 10 years, with opportunities for investment in various sectors, though buyers and investors should be aware of the potential challenges associated with each type of investment.
Sources:
Worthington, M. (2022, September 15). A Changing 2022 Florida Real Estate Market Forecast: What’s Still to Come. HomeLight. Retrieved May 5, 2025 from https://www.homelight.com/blog/florida-real-estate-market-forecast-2022/
Florida Housing Market. Redfin. Retrieved May 5, 2025 from https://www.redfin.com/state/Florida/housing-market