Florida, USA – Once seen as a haven for affordable living and strong real estate investment, Florida’s housing market may be nearing a tipping point. A new report from Cotality reveals troubling signs that the state’s real estate boom could be slowing amid increasing affordability challenges and mounting climate-related risks.
Affordability Crisis Emerges in the Sunshine State
For years, Florida attracted a wave of homebuyers—from retirees to young professionals—thanks to low taxes and relatively affordable property prices. Between 2015 and 2024, the state’s population surged from 20.3 million to nearly 23.4 million, according to Cotality’s Florida on the Brink report.
But the very factors that made Florida attractive may now be threatening its stability. The report points to two main pressures: the rising cost of homeownership fueled by natural disasters and soaring insurance rates, and a growing imbalance between housing availability and rapid business development.
“In the last 25 years, we’ve seen Florida experience a dramatic rise in home prices, insurance premiums, and property taxes,” said Selma Hepp, Chief Economist at Cotality. “Now, ongoing in-migration and high living costs are straining infrastructure and making it harder for families to sustain life here.”
Home Prices Surge, But So Do Concerns
Florida’s median home price reached $393,500 in October 2024—surpassing the national average—while Miami topped the list with a staggering median of $629,575. The influx of affluent buyers from states like New York, Georgia, California, Texas, and New Jersey has only increased the competition for housing, driving up prices even further.
However, the market’s red-hot streak may be cooling in parts of the state. “While Miami and Tampa have seen some of the steepest home price increases since the pandemic began, insurance costs and rebuilding expenses from persistent natural disasters are beginning to weigh heavily on prices, especially along Florida’s west coast,” Hepp noted.
Climate Events Drive Hidden Housing Crisis
Historically, Florida’s Gulf Coast offered some shelter from the brunt of hurricane season. But that changed in 2024 with Hurricane Milton, which caused an estimated $34 billion in wind and flood damage. As climate change fuels more frequent and intense storms, insurers have either raised rates dramatically or pulled coverage altogether—creating what some experts call a hidden housing crisis.
Without insurance, many homeowners are left unable to repair damage or continue making mortgage payments after disasters strike.
According to a separate report by Intercontinental Exchange, Florida had the highest annual increase in non-current mortgages as of March 2025. Foreclosures and delinquencies in the state rose 10.4% year-over-year—well above rates seen in Colorado (6.7%) and California (5%).
Residents Look Elsewhere as Pressures Mount
The rising cost of living, insurance volatility, and climate risk are prompting some Florida residents to consider relocating. “People are starting to leave in search of the qualities that once made Florida so desirable—affordable living, economic opportunity, and favorable weather,” Hepp said.
Still a Market for Some—With Caution
Despite the growing concerns, experts say Florida’s housing market still holds potential—especially for buyers who carefully weigh the risks.
Prospective homeowners are advised to research local market conditions, factor in insurance and tax costs, and understand what disaster assistance options are available. Consulting a local lender and determining eligibility for housing programs can also help ease the financial burden.
While the allure of Florida remains, the reality is becoming more complex. For many, the question is no longer just whether they can buy a home in Florida—but whether they can afford to stay.
