Nov 4, 2025
Real estate inventory in Florida is falling for the first time in two years, according to real estate analysts.
As Newsweek reports, new listings in the state have declined year-over-year in every month since May, with decreases of -2% in May and June, -4.8% in July, -6.5% in August and -7.2% in September, according to data from Realtor.com (1).
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While these declines might seem small, they follow years of steadily rising inventory in the Sunshine State. And experts say the shift isn’t just due to seasonality, which typically explains why sales tend to cool down after a busy spring and summer market.
“I think it’s very notable that Florida didn’t have any seasonality whatsoever for two full years," Mike Simonsen, founder and CEO of Altos Research, told Newsweek. “So the fact that a ‘seasonal’ decline in inventory even happened this year is a change.”
What's driving the slowdown?
Florida’s housing market soared during the pandemic. With mortgage rates at record lows, millions of Americans suddenly able to work remotely and a steady influx of new residents from higher-cost states, developers raced to build in Florida.
Construction boomed across the state, pushing active listings above 100,000 earlier this year, according to Altos Research. But the conditions that fueled that demand have now faded.
Mortgage rates have spiked in 2025 as the Fed began raising rates to combat inflation. Employers have also called many workers back to the office, slowing the migration that once powered Florida’s growth (2). Meanwhile, home prices remain about 56% higher than in February 2020 (3), insurance premiums continue to climb and climate-related risks are weighing on would-be buyers's minds.
“Withdrawals are high, which implies that if you don’t have to sell, you’re not,” Simonsen noted to Newsweek. Redfin economist Chen Zhao added that some sellers are stepping back due to “price weakness,” choosing to wait until demand improves.
In short, many of the “urgent sellers” have already cleared out and those remaining are in no rush to drop their asking prices.
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Is inventory falling in other states?
Florida's reversal is notable because it's one of the few states that had seen continuous inventory growth since 2022. Nationwide, housing supply is continuing to grow, but it's beginning to slow down.
According to Realtor.com’s September data, active listings across the U.S. were up 17% year-over-year, marking the 23rd straight month of gains. However, the national inventory still sits nearly 14% below pre-pandemic levels, and growth has been slowing down since May (4).
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The South and West now have more homes on the market than before 2020, while the Northeast and Midwest remain undersupplied. Cities such as Denver and Austin have exceeded their 2019 inventory levels, but cities like Chicago and Hartford, Connecticut, are lagging.
Homes are also taking longer to sell. The typical U.S. home spent 62 days on the market in September — about a week longer than the same period a year ago. Several Florida cities are among the slowest markets, with listings sitting between 13 and 16 days longer than last September, according to Realtor.com.
What this means for buyers and sellers in Florida
For buyers, the shift could bring mixed news. Fewer listings mean less choice, but there is also the potential for slightly better deals as sellers become more flexible on pricing.
For sellers, this is no longer the pandemic-era market where homes sold in days with multiple offers over asking. With demand down and listings sitting longer, patience and realistic pricing are key.
If you're planning to buy, here are a few things you should consider:
- Shop around for lenders. Even small differences in rates can translate to significant savings over time
- Consider homes that need light repairs. Sellers eager to offload these properties may be more open to negotiating the price
- Be ready to move quickly when you find the right home, as inventory could tighten further heading into the winter
And for those planning to sell soon:
- Price strategically. Overpricing can lead to longer waits and eventual markdowns
- If you want to sell quickly, be flexible. Incentives like closing-cost assistance or rate buydowns can help attract cautious buyers
- Highlight energy-efficiency and storm-readiness features, as insurance costs and climate change risks are at the forefront of many buyers's minds
Florida’s housing market is shifting into a new phase — one with fewer bidding wars and more caution and patience. Whether this trend sticks to just the Sunshine State or spreads nationwide is yet to be seen.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Newsweek (1); Jacksonville.com (2); NPR (3); Realtor.com (4)
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
