Housing prices drop by up to 12% in Florida cities

Home sale prices dropped by up to 12% in the last 12 months in cities in Florida, Texas, and metropolitan areas across the United States, according to authoritative sources on the matter.

A report from the real estate portal Realtor.com, cited by the site Business Insider, which specializes in financial and business news, warns that this represents a quite significant drop compared to the rest of the country, as the national average price of properties decreased by 1% year-over-year last September.

A trio from Florida tops the list of U.S. cities where housing prices for sale have fallen the most: Miami, Fort Lauderdale, and Pompano Beach, with an average price of $525,000 and a decrease of -12.4% compared to 2023.

Jacksonville alone occupies the sixth position, with an average price of $399,000 and a variation of -6.1%; Orlando, Kissimmee, and Sanford share the eighth place ($429,950/-5.6%); while Tampa, St. Petersburg, and Clearwater are positioned in the ninth spot on the list ($414,948/-5.5%).

Demand in cities that experienced a real estate boom during the COVID-19 pandemic has declined in the past year, due to rising living costs in states like Florida and Texas, high-impact climate events, and increased political tensions causing discontent among some residents, according to Business Insider.

In some of these cities, a notable surplus of property inventory has been recorded, which has begun to exceed the level of demand from buyers. The situation has worsened due to hurricanes and weather conditions.

This year, in the span of just two months, Florida has been struck by three powerful hurricanes, the impact of which has been devastating: Debby in August, Helene in September, and Milton just a few days ago.

“The Florida real estate market, which was previously booming, has cooled down, leaving many owners stranded,” notes an article from New York Post, citing one published by The Wall Street Journal. “Across the state, home sales have slowed. Inventory has surged by more than 50% in major cities like Tampa, Orlando, and along the Space Coast, while demand has dropped by at least 10%, according to the real estate data firm Parcl Labs.”

New York Post claims that more than half of the homes in Tampa on the market suffered price reductions, making that city one of the most affected metropolitan areas in the country.

In 2024, hurricanes "have become the last straw for many homeowners in Florida who are already experiencing the exorbitant increase in insurance premiums," the report states.

According to the data handled by the newspaper, insurance costs in Florida have increased by up to 400% in recent years, largely due to the frequency of cyclones. Property owners pay more for insurance coverage than in almost anywhere else in the United States.

A study by the company Insurify revealed that, in 2023, homeowners in Florida paid an average of $10,996 to insure their homes, which is 421% more than the national average, reported the EFE agency.

However, Florida is the third most populous state in the U.S., and in 2023 it was the second that attracted the most new residents, after Texas, according to national census data.