After moving from Virginia to Florida in 2021, Anthony Holmes spent $600,000 on a five-bedroom home in a Tampa community, expecting the state’s booming real estate market to continue rising. However, he now finds himself unable to sell the property, even after eight months and five price drops.
The once-hot Florida housing market has turned cold, leaving Holmes and many other homeowners stranded. Across the state, home sales have slowed, inventory has ballooned, and demand has dropped. Rising insurance costs, high mortgage rates, and the threat of hurricanes have contributed to the market’s cooling. Insurance premiums have surged up to 400% in recent years, and some homeowners like Holmes have even been dropped by their providers altogether.
The condo market is also taking a hit, with new laws requiring expensive structural assessments and repairs, leading to massive special assessments for owners. Institutional investors, who have been major players in Florida’s real estate market, are now starting to pull back, listing homes they once purchased in bulk. Experts warn that if this trend continues, it could have a cascading effect on home prices. While Miami remains a bright spot, the outlook is not as rosy for homeowners in other parts of the state, like Holmes, who are just hoping to break even on their properties.
