Hold on to your hats, Lakeland homeowners! According to a recent report, Lakeland ranks as the second most risky housing market in the US. This means that a significant price correction or even a market downturn is possible. Don’t panic just yet, but it is time to pay attention and understand why this is happening, what it means for you, and what you can do about it.
Why is Lakeland on This List?
You might be asking yourself, “How did this happen?” Lakeland is a growing city with a great quality of life, so why is it vulnerable? Several factors combine to place Lakeland in this position:
- Rapid Price Appreciation: Like many areas in Florida, Lakeland saw huge home price increases during the pandemic. Prices went up fast and far, which can lead to overvaluation.
- Increased Inventory: More homes are hitting the market in Lakeland. This increased supply can put downward pressure on prices. When there are more houses for sale than people buying, prices tend to fall.
- Affordability Concerns: Florida has seen significant increases in insurance premiums, making the dream of owning a home a financial burden. This impacts affordability, squeezing potential buyers and reducing demand. It went up by as much as 70% since 2020.
- Shifting Market Dynamics According to Cotality’s Chief Economist, Dr. Selma Hepp, housing markets are undergoing transition with an increasing proportion of market experiencing annual decline in prices. The softness is primarily concentrated in southern and southeastern markets, including major metropolitan areas in Florida, Texas, and the San Fransisco Bay Area.
The Data Doesn’t Lie: What the Numbers Say
According to Cotality (formerly CoreLogic), as of August 5, 2025, the housing market is showing signs of cooling:
- Year-over-year price growth has slowed to 1.7% in June 2025.
- Monthly price increases are minimal (0.1% compared to the previous month).
While not as alarming as a full-blown crash, these numbers suggest a softening market. For example, consider some of the key markets they are watching:
- Cape Coral, FL
- Lakeland, FL
- North Port, FL
- St. Petersburg, FL
- West Palm Beach, FL
This is an important area to keep an eye on…