The Florida housing market is “on the brink” as home prices, homeowners’ insurance, and property taxes have surged beyond what many can afford, according to a new report by Cotality, formerly known as CoreLogic.
Why It Matters
After years of booming during the COVID-19 pandemic, when people from all across the country were moving to the state chasing sunny weather, relatively affordable housing, and lower taxes, the Florida housing market is now experiencing a correction.
In-migration—the process of relocating to another part of one’s country—to the state has slowed down significantly since companies started calling their employees back to the office. On top of that, historically elevated home prices and stubbornly high mortgage rates have cooled down demand for housing, pushing potential homebuyers off the market right when a new flood of inventory was landing on the market as a result of Florida’s recent efforts to build more supply.
What To Know
According to Cotality’s report, Florida’s pandemic boom is now turning into a burst, as years of enormous population growth have left the state grappling with rising home prices, shrinking affordability, and growing pressure on its infrastructure.
Between 2021 and 2023, nearly 2.76 million people moved to Florida, making it the third most populous state in the nation. While these newcomers represent a boost to economic growth in Florida, they have also negatively affected the state’s housing market…