Florida’s housing market boomed during the COVID-19 pandemic as people flocked to the Sunshine State for its warmer weather and affordable homes. Since then, the market has cooled with inventory rising and prices staying high and steady.
As a real estate investor, now may be a good time to buy distressed properties in Florida to flip or turn into rentals (aka the BRRRR strategy). Home selection is expanding, and buyer competition is falling.
Plus, ABL can help you get started. We offer fast, flexible hard money loans statewide to help you seize opportunities quickly. Furthermore, our local teams can guide you through the entire investment process with their deep knowledge of the Florida market.
Here are the top trends driving the Florida real estate market today:
1. Real Estate Sales Are Slowing
In February 2025, closed home sales in Florida reached 17,697, down 7.1% from the same time last year. Florida metro areas where sales are down the most include Lakeland-Winter Haven (-14.4%), Jacksonville (-13.9%), and Ocala (-13.4%). However, one Florida metro stands out with a rise in sales activity: Sebastian-Vero Beach (21.6%).
2. Home Prices Remain High
Since 2022, the median home sales price in Florida has hovered just over $400,000. In February 2025, it was $415,000, representing a 0.0% change from the previous year. Meanwhile, the average sale price in February was $628,642, up 7.3% from last year. This suggests higher-end homes have increased in price, even if the median home hasn’t.
3. Housing Inventory Is Expanding
Across the state, home inventory is increasing. This is partly due to a surge in new construction homes coming on the market and rising insurance and homeowner association (HOA) costs pushing more sellers to put their homes on the market.
At the end of February 2025, there were 111,827 active home listings on the market, up 31.6% from the same time last year. Of those, 33,503 were new listings, which increased by 2.9% since last year. In other words, you have a growing selection of homes—and especially new homes—to choose from, making it easier to find one that meets your investment criteria.
4. Listings Are Taking Longer to Sell
That said, home listings are sitting on the market longer. In February 2025, the median number of days between the listing date and closing date among closed sales was 93, a 3.3% increase from last year.
This is partly due to mortgage rates remaining high. Over the last year, the average 30-year mortgage rate has hovered between 6% and 7%. As of March 27, 2025, it was 6.65%. This may be keeping some homebuyers on the sidelines. However, if mortgage rates fall, this will raise buyer demand and put upward pressure on home values.
5. The Market Is Rebalancing
Since the COVID-19 pandemic, Florida’s housing market has been a seller’s market. This means the monthly supply of homes (the number of months it would take to deplete the current inventory at the current sales rate) is below 5.5 months. However, that number has been inching up. In February, Florida’s monthly supply of inventory reached 5.3, a 35.9% jump from last year.
This is a sign that Florida’s real estate market is rebalancing and may even become a buyer’s market soon. As a real estate investor, this can give you more negotiating power to win deals at below-market prices. In fact, the median percent of the original list price received for homes in February 2025 was 95.5%, a 0.7% drop from last year.
Other Reasons to Invest in Florida Real Estate
Here are a few more reasons to consider investing in the Sunshine State:
- Growing population: From 2010 to 2022, Florida’s population grew 18%, while the U.S. population grew 7.7%. This rapid growth increases housing demand, allowing you to raise listing and rental prices.
- Strong economy: In 2023, Florida’s GDP reached $1.3 trillion, a 4.3% jump from 2022. This helps drive stable employment for rental tenants and attract more homebuyers to the state. Furthermore, the industry that contributes most to Florida’s GDP is real estate.
- Tourist attractions: Florida’s warm weather, vibrant culture, Disneyland, and other attractions bring in millions of tourists each year. In 2024, the state attracted a record-breaking 142.9 million visitors, creating ample opportunities for short-term rental (STR) investors. Use one of our DSCR rental loans to get your slice of the STR pie.
Partner with ABL
Partner with ABL’s Florida team to take your real estate investing to the next level. Our flexible loan options make it easy to secure great deals and maximize your returns. Whether you’re an absolute beginner or a seasoned pro, we’re here to help you at every step. Pre-qualify today!
Note on sources:
- Florida real estate data taken from Florida Realtors® (unless otherwise cited)