Florida has long been a magnet for homebuyers, retirees, and investors alike, and the Sunshine State’s housing market shows no signs of cooling off in 2025. With its booming population, strong economy, and enviable lifestyle, Florida remains one of the most dynamic real estate markets in the U.S. Whether you’re looking to buy, sell, or invest, here’s an in-depth look at the current Florida housing market and why it’s a smart place to put your money.
Florida’s population continues to surge, with an estimated 22.5 million residents as of 2025. The state’s warm climate, lack of state income tax, and relatively affordable cost of living (compared to other high growth states like California and New York) make it a top destination for retirees, remote workers, and families alike. This influx of new residents is driving demand for housing, particularly in cities like Tampa, Orlando, Jacksonville, and Miami. Stat to Know: Florida’s population is growing by nearly 1,000 people per day, according to the U.S. Census Bureau.
While Florida’s housing market experienced a surge in prices during the pandemic, 2025 has brought a more balanced environment. Home prices are still appreciating, but at a more sustainable pace. Median Home Price: As of 2025, the median home price in Florida is $425,000, up 4% year-over-year. Hot Markets: Miami remains one of the most expensive markets, with a median price of $650,000, while cities like Jacksonville and Orlando offer more affordable options, with median prices around $375,000 and $400,000, respectively.
This steady appreciation makes Florida a great place for long term investments, especially in markets with strong job growth and infrastructure development.
One of the biggest challenges in Florida’s housing market has been low inventory. However, 2025 has seen a gradual increase in the number of homes for sale, thanks to new construction and a slight cooling of demand. Months of Supply: Florida currently has 3.5 months of housing inventory, up from 2 months in 2023 but still below the 6month benchmark that indicates a balanced market. New Construction: Builders are working to meet demand, with over 150,000 new housing permits issued in 2024. While inventory remains tight, the situation is improving, giving buyers more options than in previous years.
While Miami and Orlando continue to dominate headlines, secondary and tertiary markets are gaining traction in 2025. Cities like Cape Coral, Sarasota, and Port St. Lucie are seeing significant growth, driven by their affordability, quality of life, and proximity to major urban centers. Stat to Know: Cape Coral has seen a 12% year-over-year increase in home sales, making it one of the fastest-growing markets in the state. These smaller markets offer excellent opportunities for investors and first-time homebuyers looking for more affordable entry points.
Climate change remains a critical factor in Florida’s housing market. Rising sea levels and increased hurricane activity are influencing where people choose to buy and build. Trend to Watch: Demand is shifting toward inland properties and homes built to higher resilience standards. Coastal areas are still popular, but buyers are increasingly prioritizing flood insurance and hurricane-resistant features. Stat to Know: Florida accounts for 79% of the nation’s flood insurance claims, according to FEMA. For investors, this means focusing on properties with strong infrastructure and resilience features, which are likely to hold their value over time.
Florida’s rental market remains robust in 2025, driven by population growth and a steady stream of new residents. Median Rent: The median rent in Florida is $2,200 per month, with Miami leading the pack at $3,000 per month. Vacancy Rates: Florida’s rental vacancy rate is just 5.2%, well below the national average of 6.8%. For investors, this means strong cash flow potential, particularly in markets with high demand for single-family rentals and multifamily properties.
Mortgage rates have stabilized in 2025, hovering around 6.5% for a 30 year fixed rate loan. While higher than the historic lows of the early 2020s, these rates are still relatively affordable compared to previous decades. Affordability Index: Florida’s housing affordability index is 95, meaning the median household income is just 5% short of what’s needed to qualify for a median-priced home. For buyers, this means opportunities to lock in a mortgage before rates potentially rise further. For sellers, it means a steady pool of qualified buyers.
Technology is transforming the way Floridians buy and sell homes. In 2025, tools like virtual tours, AI-driven market analysis, and blockchain-based transactions are becoming the norm. Trend to Watch: Nearly 70% of homebuyers in Florida start their search online, making a strong digital presence essential for sellers and agents.
Florida’s housing market in 2025 is a perfect blend of opportunity and stability. With strong population growth, steady price appreciation, and a diverse economy, the Sunshine State offers something for everyone—whether you’re a first-time homebuyer, a retiree, or an investor.
At Grace CRE, we specialize in helping clients navigate Florida’s dynamic real estate market. From finding your dream home to identifying the best investment opportunities, our team is here to guide you every step of the way.
Ready to make your move? Contact us today to get started!
Disclaimer: Market conditions can change rapidly. All data is based on current trends and projections for 2025. For the most up to date information, consult with a local real estate professional.
Sophia Willets, the owner and lead broker of Grace CRE, is a seasoned professional with a deep passion for commercial real estate. With a commitment to strategic growth and building lasting client relationships, she expertly guides clients through every step of their real estate journey, ensuring success and satisfaction in all their endeavors.
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