What’s Next for Florida Real Estate? 2025 Trends to Watch

Trends in 2025 are on the minds of many, and it's important to review some data to prepare us to make the best decisions. Are Florida and the Sun Belt still hot spots? Home prices, inventory, mortgage rates, property insurance, and taxes all affect the home purchase process. What's ahead here?

Florida Housing Markets Poised for 2025 Growth

Florida’s housing market is gearing up for a promising 2025, according to Realtor.com. With affordability, new construction, and appeal to younger, diverse buyers, the state is solidifying its position as a hot spot for growth. Notably, nine Florida metro areas have made it into the top 100 U.S. housing markets expected to thrive in 2025, with two securing places in the top 10.

Florida’s Standout Markets

Among the top 10 U.S. housing markets for 2025, the Miami-Fort Lauderdale-Pompano Beach and Orlando-Kissimmee-Sanford metro areas shine brightly. Florida’s appeal stems from its affordability and growing inventory, fueled by new construction. This is particularly attractive to younger buyers and those with military or international ties, making it a diverse and dynamic region for real estate.

Nationwide Trends in 2025

Danielle Hale, Chief Economist at Realtor.com, predicts that home sales nationwide will see a slight uptick in 2025, driven by cooling price growth. However, the top markets are poised for stronger gains in sales and prices. Mortgage rates are likely to ease only modestly, but the relatively lower-priced homes in these markets, coupled with diverse financing options, could make homeownership more accessible to many buyers.

A Closer Look at Orlando and Miami

Orlando-Kissimmee-Sanford ranks sixth on the list and benefits from a combination of affordability and inventory growth. Its appeal is amplified by flexible work arrangements, with 8.8% of jobs offering remote or hybrid options—higher than the average across the top 100 metros.

Miami-Fort Lauderdale-Pompano Beach, ranked second, stands out for its international connections and vibrant cultural diversity. While Miami’s cost of living is higher than the national average, its strong ties to global communities and opportunities for government-backed mortgages make it a compelling choice for buyers.

Housing Affordability and Inventory

Affordability remains a challenge, with buyers in the top 10 markets spending an average of 31.1% of their income on housing, compared to the national average of 29.2%. Despite this, many of these markets, including Orlando, offer lower living costs compared to the U.S. average. Additionally, inventory is on the rise, with single-family home construction increasing year-over-year in eight of the top 10 markets.

Diverse and Young Communities

Younger households are more prevalent in these markets, with most having an above-average share of residents under 35. Florida’s top markets also feature strong military and international connections, with 17.6% of residents being foreign-born. Miami leads the way with 42.7% of its population born outside the U.S.

Opportunities for Homeownership

Government-backed loans such as VA, FHA, and USDA mortgages are helping to drive growth in these markets. With lower down payment requirements, these programs are opening the door to homeownership for more families, particularly in areas like Miami and Orlando.

Looking Ahead

As we approach 2025, Florida’s housing market is primed for success. With its blend of affordability, growing inventory, and cultural diversity, the Sunshine State remains a top destination for buyers. Whether you’re a first-time buyer or a seasoned investor, Florida’s housing market is one to watch.

Source: Realtor.com

For more insights on Florida’s real estate market or to discuss your buying or selling goals, feel free to reach out!