Florida Housing Market Poised for Steep Price Drops in 2025

Florida's housing market is likely to face steep price declines in 2025, according to experts, as what was once among the hottest states in the nation has become a tricky place to buy and sell a home.Nick Gerli, the CEO of the real estate data platform Reventure App, told ResiClub, a media and research company that analyzes the U.S.

housing market, that home values in certain Florida markets could drop by as much as 10 percent throughout 2025, as growing inventory meets dwindling demand—and the state's homeowners insurance market remains in shambles.While a booming market such as Miami is expected to continue thriving next year, cities such as Tampa, St. Petersburg, Sarasota, Punta Gorda and Naples are likely to experience steep declines, Gerli forecast.Newsweek contacted Gerli for further comment by email on Monday outside normal business hours.Why It MattersHousing affordability has been strained across the U.S. in the past four years, as prices skyrocketed during the pandemic because of pent-up demand and an ongoing supply shortage that has affected the entire country.In Florida, this situation has been exacerbated by the instability of the state's homeowners insurance sector. While hurricanes have always affected the state, climate change is making extreme weather events more frequent and more severe, increasing the risk for insurers that policyholders' damage claims may outweigh company profits.Several major insurers have cut coverage in the most disaster-prone areas of the state in the past few years or withdrawn from Florida entirely, leaving residents struggling to find coverage. At the same time, premiums have risen beyond what many can afford.Inbound migration to Florida has also significantly slowed down since the pandemic boom, while inventory is still on the rise thanks to building projects that began in the past few year

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