Florida Housing Market on the Verge of a Strong Rebound in 2026

If you've been keeping an eye on Florida's housing market, you've probably noticed things felt a little… different this past year. And you're right. Florida’s housing market indeed slowed through much of 2025, a noticeable shift from the frenzied pace we saw not too long ago. However, as I see it, and as the latest insights from Florida Realtors® suggest, this slowdown isn't the whole story.

We're actually starting to see the early sparks of a rebound, fueled by improving mortgage rates and a steady stream of people making the Sunshine State their home.

Florida Housing Market on the Verge of a Strong Rebound in 2026

It’s easy to get caught up in the headlines that scream “market crash” or “bubble bursting,” but the reality is usually far more nuanced. Personally, I've been watching real estate trends for a while now, and what I’m seeing in Florida in 2025 is a market that’s taking a breath, recalibrating, and preparing for its next chapter. So, what exactly happened, and where are we headed?

What Made Things Cool Down?

If you were trying to buy a home in Florida during this period, you probably noticed a few things.

• Mortgage Rates Weren't Our Friend: The cost of borrowing money to buy a home went up significantly. This meant monthly payments were higher, pushing some potential buyers out of the market or forcing them to look for less expensive homes.
• Affordability Became a Hurdle: When you mix high prices with high interest rates, you get a tough affordability situation. It just wasn't as accessible for many people to buy their dream home.
• Insurance Pains: Like I mentioned, insurance is a big deal in Florida. Rising premiums made owning a home more expensive, affecting both buyers and sellers.
• Extended Time on Market: Homes weren't flying off the shelves as quickly. This meant sellers had to wait longer to find a buyer, and it gave buyers a little more breathing room, but it also signaled a cooling demand.

It's important to understand that the increase in inventory we saw wasn't necessarily because a flood of new homes hit the market. Instead, it was mostly because homes were taking longer to sell. This is a key difference that signals a slowdown in demand rather than an oversupply.

A Global Slowdown and Florida's Place in It

It wasn't just Florida; the whole world was feeling it. The International Monetary Fund pointed out that global economic growth was slowing down. This kind of global economic uncertainty often makes people hesitant to make major purchases, and buying property is definitely a major purchase. This global context definitely played a part in softening demand here in the Sunshine State.

But Wait, There’s Good News Emerging!

Here’s where my experience comes in. Even though things felt slow, I saw glimmers of hope. Since the survey period ended, we've started to see mortgage rates ease a bit. This is a huge deal for buyers. Lower rates mean lower monthly payments, which instantly makes homeownership more attainable for more people. This is precisely why I believe we're seeing that early momentum and beginning of a rebound.

Inventory: Not Too High, Not Too Low

One of the interesting things about 2025 was the inventory situation. While inventory levels did increase, they generally stayed above pre-pandemic norms. This was more a reflection of demand weakness than an explosion of new homes. Importantly, these levels weren’t extreme enough to cause major price drops statewide. In areas where there was some price softening, it often coincided with a lot of new construction competing with existing homes.

Migration: Still Strong, Just Different

Florida has always been a magnet for people, and 2025 was no different, though the pace changed. While the domestic in-migration we saw after the pandemic peak might have cooled a bit, it was still stronger than pre-pandemic levels. And as interest rates continue to make homeownership more accessible, I expect this demand could get even more energized.

International Buyers: A Welcome Resurgence

This is a fascinating part of the story, and something I pay close attention to. International buyers are a vital part of Florida's real estate scene.

Key Takeaways for International Buyers in 2025 (August 2024 – July 2025):

• Sales Surged: The number of residential purchases by international buyers increased by a whopping 50% compared to the previous year. While still below pre-pandemic numbers, this rebound is a very positive sign for investor confidence.
• Dollar Volume Climbed: With more transactions and higher sale prices, the total dollar volume spent by international buyers jumped to $10.4 billion, up from $7.1 billion. This was a significant recovery.
• Still a Small Piece of the Pie: Despite the surge, international buyers still accounted for a small share—5%—of total existing home sales and dollar volume in Florida. This shows how strong the domestic market is.
• Where They Came From:
  • Latin America and the Caribbean remained the largest group, making up 45% of buyers.
  • Europe and Northern America (primarily Canada) tied for second, at 18% each.

Top Countries by Dollar Volume:

Rank	Country	Dollar Volume (2025)	Change from 2024
1	Canada	~$1.9 billion	+52%
2	Colombia	$925 million	+201%
3	Brazil	$762 million	Modest Increase
4	Mexico	(Returned to Top 5)	–
5	United Kingdom	(Fell out of Top 5)	–

Source: Florida Realtors®

It's really encouraging to see countries like Colombia significantly increasing their investment. Canada continues to be a powerhouse, and it’s great to see Mexico back in the Top 5.

Where International Buyers Invested:

• South Florida remained the top destination, attracting 45% of international purchases.
• The Orlando-Kissimmee-Sanford area also saw a good chunk of buyers from Latin America and the Caribbean.
• Tampa Bay and Southwest Florida were more popular with buyers from Canada and Europe.
• Interestingly, while the Naples-Immokalee-Marco Island area saw only 6% of Florida’s international purchases, 52% of those buyers were Canadian. This highlights specific regional appeal.

Price Trends: A Slight Shift

Even with the slowdown, Florida's median sale price for international buyers in 2025 was $442,000. This was a slight decrease from the previous year, but still elevated compared to pre-pandemic times. What’s interesting is that the price gap between international buyers and the overall Florida median sale price narrowed.

• Most Purchases ($250K–$500K): The largest share of homes bought by international buyers fell into this range, showing a slight increase.
• Under $150K Saw Growth: The price bracket under $150,000 saw the most significant increase in share, which could indicate a different type of buyer or investment strategy.

Looking Ahead: Cautious Optimism

So, what does all this mean for you? Florida’s housing market in 2025 was a mixed bag. We saw a slowdown, no doubt, driven by many factors. But the underlying appeal of Florida – its weather, lifestyle, and investment potential – remains incredibly strong.

As mortgage rates continue to normalize and the global economy finds its footing, I’m anticipating further positive movement. The steady migration trends and the resurgent international interest are powerful indicators that Florida's housing market is resilient and poised for continued growth. It might not be the frenzied pace of a few years ago, but a more balanced and sustainable market is, in my opinion, a good thing for everyone involved.