Florida real state crash?

Question

It looks like Florida real state in going down, some people say it's gonna crash and the bubble just popped, any advice? Type c properties the best for the recession? What cities in Florida are gonna be the best for investment rigth? And what type of properties?

Kerry Baird · Answer

There are economies that are going to thrive in Florida, even while there are economies that aren't very healthy.  There are many factors that go into house prices, but the local environment in Miami is not the same thing as the economy in Tallahassee or Cocoa Beach.

As far as action steps, it is best to get your financing in place first.

Buyers are largely uncertain right now, and perhaps hopeful that prices will come down.  In my area (Space Coast of Florida) the snowbirds are in town and are buying expensive houses at a good clip.  There are other price points that are stagnant.  It just depends.

Are you looking at single family rentals? There are always houses in distress, renovations, probates and so forth, and deals are made in all kinds of markets. A growing market is better than one where folks are moving out. I like brick or block 3 bedroom houses with good roofs. I like to buy in growing areas, near military bases or other industries where folks get solid paychecks.

There are not going to be neon lights over good deals. You have to be looking in good times and in bad, and if you look for a few minutes every day, you will find houses that have been on the market too long, or overlooked gems that need updating.

Jorge Vazquez · Answer

Hey Danilo, great question. I’ve written a few deep dives on this and based on everything I’ve seen, Florida isn’t crashing. What we’re seeing is more of a stabilization after the crazy post-COVID run-up. Prices in some areas are adjusting, especially where they jumped too fast, but we’re not seeing anything close to a 2008 scenario. Lending is tighter, inventory is still low in many areas, and demand remains solid in key markets.

When it comes to the best cities right now, places like Tampa, Lakeland, Ocala, and parts of Orlando are still holding strong. They’ve got population growth, steady job markets, and solid rental demand. As for property types, older block single-family homes in working-class neighborhoods are still a favorite of mine. They tend to hold up well, especially if they’re near jobs or transit. Type C can work, but make sure you’re realistic about maintenance and tenant risk if the economy slows.

This market is definitely shifting, but for long-term investors who are active and cautious, there’s still plenty of opportunity.

Gina Stern · Answer

The foreclosure market will pick up here and nationwide, especially in the Condo market. Seniors cannot afford ever-increasing  HOA fees due in part to many buildings not having enough reserves. In addition to that, there is a hike in insurance premiums and increased repair costs due to the tariff situation we now have to contend with. It is a recipe for disaster!

Gavin Welch · Answer

Florida is not "crashing" but is experiencing a slow down.  The fact is when cost-of-living goes up people cant afford to vacation here or buy expensive homes here.  To further complicating things are higher interest rates and increased insurance costs.  The result is increased days on market and declining sale prices.  Foreclosure notices have increased in SW Florida.  If you are looking for a 'stable' market to purchase focus on markets with increasing industrial areas and jobs.. Is this going to be 2008 all over again?   I don't see anything indicating that.. yet..

Robert Ellis · Answer

if you think miami is crashing you need to google miami housing articles and look at 20 headlines. not even close

Clay Lehman · Answer

@Jorge Vazquez where can I find your writing?  I would love to read more about what you are seeing.  I am posting an article I wrote later this week on my site contrasting the 2008 housing market with the 2025 housing market, what is similar, what's different and what it will all mean or might mean.  Would love to see what you are saying.

Jorge Vazquez · Answer

Inbox me. Would love to share....

Nick Velez · Answer

Florida as a whole is not one market, each area is different and is driven by a different set of economic factors. I have clients still competing with multiple offers on well priced properties in areas such as Clearwater and St.Pete. In my local market of Gainesville, we are approaching busy season and I have plenty of clients submitting offers on properties.

Invest in local markets that are continuing to grow and flourish!

Rich Goldthwait · Answer

Many places in FL are experiencing a market slowdown. Prices spiked after covid and became unaffordable. Builders increased inventory well beyond demand.

However, based on our data models places like Lake City, Sebring, & Gainesville still have relatively strong metrics. All had population growth over the past year. They are still (somewhat affordable) relative to other areas of the state. And home values are still growing YoY. My assumption is that buyers priced out of the larger markets are migrating to these smaller markets within the state.

If you want to look for yourself, check out our data tool or reach out!

Adam Bartomeo · Answer

Advice... buy while things are on sale because they will not remain that way. The market will come back like it always does.

Florida real state crash?

Most Popular Reply