Floridalted in some deals falling through, especially for coastal properties where buyers struggle to obtain affordable insurance.

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Regional Disparities

While some areas face declines, others continue to thrive. Miami and Orlando are projected to see significant growth. The MiamiFort LauderdalePompano Beach area is expected to experience a 24 increase in home sales and a 9 rise in median sale price in 2025. Similarly, the OrlandoKissimmeeSanford area anticipates a 15.2 jump in sales and a 12.1 increase in median sale price. citeturn0search9 These trends are driven by continued inmigration and strong demand in these metropolitan areas.

Climate Risks and Market Outlook

Climate change poses a significant threat to Floridas housing market. Experts warn that rising insurance costs and increased frequency of natural disasters could lead to a substantial decline in home values. Approximately 18 million homes nationwide may see prices fall by 2040 over the next 56 years due to climaterelated risks. citeturn0news13 This potential downturn underscores the importance of addressing environmental challenges to maintain market stability.

Conclusion

Floridas housing market in 2025 is marked by a cooling trend, with increased inventory and affordability challenges tempering previous growth. While certain regions like Miami and Orlando continue to show resilience, the broader market faces headwinds from economic and environmental factors. Stakeholders must navigate these complexities to ensure sustainable growth in the states real estate sector.