Steepest Home Price Decreases Expected in Florida's Troubled Housing Markets by 2025
In the real estate landscape of Florida, a shift is underway, with several metropolitan areas experiencing significant drops in home prices. According to the latest data from Florida Realtors, the markets that have seen the steepest declines include Naples-Immokalee-Marco Island, Punta Gorda, The Villages, Sebastian-Vero Beach, North Port-Sarasota-Bradenton, Cape Coral-Fort Myers, and Tallahassee [1].
In May 2025, the Naples-Immokalee-Marco Island MSA experienced a 19.2% decrease in median sale price, while the Punta Gorda MSA saw a drop of 14.5%. The Cape Coral-Fort Myers MSA and Tallahassee MSA followed closely with declines of 9.6% and 5.2% respectively [2].
The North Port-Sarasota-Bradenton MSA, with a median sale price of $475,000, has also experienced a decline of 9.9% year-over-year. This high median price point may be becoming less affordable for some buyers, leading to price corrections and falling closed sales [1].
In contrast, Tallahassee, the state capital, is experiencing a gentler price decline, potentially due to its more stable economy and less reliance on tourism-driven real estate. The city had a median sale price of $340,000 in May 2025, down 5.2% year-over-year [2].
Orlando, another major metro area, has also seen price drops, though less steep than those in the Southwest and other regions of Florida. The county of Osceola saw the steepest drop at 3.5%, followed by Seminole (2.6%), Orange (2.3%), and Lake (1.6%) [2].
The increased inventory in all three regions - Tallahassee, Cape Coral-Fort Myers, and North Port-Sarasota-Bradenton - is a good sign, giving buyers more choices and indicating a transition from hyper-growth to a more sustainable pace in Florida's real estate market [3].
This cooling trend is not limited to single-family homes. Condo and townhouse prices are also seeing declines in several metros, with 13 out of 22 metros experiencing price drops for single-family homes and even more metros seeing declines in condo and townhouse prices [3].
The ongoing rebuilding efforts and insurance challenges in Cape Coral and Fort Myers, still recovering from Hurricane Ian, may be contributing to the price adjustments in the Cape Coral-Fort Myers MSA [2].
In summary, the most severe home price declines as of May 2025 are concentrated in southern and southwestern Florida markets, while markets like Orlando and Fort Lauderdale show moderate to significant price drops but not as steep overall [1][2][4].
References: [1] Florida Realtors. (2025). May 2025 Florida Housing Market Report. [online] Available at: https://www.floridarealtors.org/news-media/research/housing-data [2] Orlando Business Journal. (2025). Orlando housing market cooling down, but not as much as some other parts of Florida. [online] Available at: https://www.bizjournals.com/orlando/news/2025/06/01/orlando-housing-market-cooling-down-but-not-as-much.html [3] Tampa Bay Times. (2025). Florida housing market cools, but still hot in Tampa Bay. [online] Available at: https://www.tampabay.com/news/business/2025/06/01/florida-housing-market-cools-but-still-hot-in-tampa-bay/ [4] Miami Herald. (2025). Miami-Dade home prices drop 1.9% in May, but sales are up 15.5%. [online] Available at: https://www.miamiherald.com/news/business/real-estate/article251165368.html
- The fluctuation in the Florida real estate market, particularly in certain metropolitan areas, is getting attention in the news.
- Significant drops in home prices have been reported in several Florida regions as per the latest data from Florida Realtors.
- Among these regions, Naples-Immokalee-Marco Island and Punta Gorda have seen the steepest declines in median sale prices.
- To combat high median prices and make the market more affordable, there have been conversations about due diligence in investment decisions within the property portfolio of many communities.
- While some markets, like Tallahassee, are experiencing a gentler decline, others, such as Cape Coral-Fort Myers and North Port-Sarasota-Bradenton, are showing consistent decreases in home prices.
- In the wake of Hurricane Ian, the ongoing rebuilding efforts and insurance challenges in Cape Coral and Fort Myers may be contributing to the price adjustments in the Cape Coral-Fort Myers MSA.
- Furthermore, the condo and townhouse prices are also seeing declines in various metros across the state, indicating a slowdown in Florida's housing market that extends beyond single-family homes.
