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Florida Housing Market Faces New Challenges — America’s Largest Homebuilder Sounds the Alarm

Construction cranes still dot the Tampa skyline, but behind the scenes, the Florida housing market is showing fresh signs of strain.

D.R. Horton, the largest homebuilder in the U.S., recently reported a 10% year-over-year sales drop in its Southeast division and singled out Florida as a market facing significant changes.

“The dynamics of the Florida marketplaces have changed significantly — and maybe most so there,” said Chief Operating Officer Michael Murray during last week’s earnings call.

While other U.S. markets with low inventory and steady lot construction are holding strong, Florida is experiencing price declines, slower sales, and growing inventory.

Florida’s Housing Market by the Numbers

According to Redfin:

  • Median Florida home price (June 2025): $410,400 — down 2.2% year-over-year
  • National home price trend: +1.0% in the same period
  • Median days on market: 70 (up from 57 last year)
  • Closed sales: Down 3.2% statewide

Key Florida markets hit hardest by falling prices and slower sales include:

  • Fort Myers
  • Lakeland
  • Naples
  • Jacksonville
  • Orlando
  • Sarasota
  • Tampa
  • West Palm Beach

Why This Shift Is Happening

Florida’s housing market boomed during the pandemic, as domestic migration surged and the state became the top relocation destination between January and June 2020 (HireAHelper.com).

But in 2025, the state is grappling with:

  • Higher mortgage rates — currently near 6.8%
  • Leveling off of in-migration after the COVID-era surge
  • Affordability pressures from rising insurance costs and property taxes
  • Economic uncertainty slowing buyer demand

Industry experts say a mortgage rate drop to 6% could bring an additional 5.5 million U.S. households back into the market — a “magic number” that could reignite buying activity.

What Experts Are Saying

“South Florida is the epicenter of housing market weakness in the United States,” said Chen Zhao, Head of Economics Research at Redfin.

“The single-family home market in Florida is adapting to a new normal,” added Tim Weisheyer, 2025 Florida Realtors President.

What This Means for Florida Buyers and Investors

While the market is slowing, this environment creates unique opportunities for:

  • First-time buyers who were previously priced out
  • Investors looking for better purchase terms and more inventory
  • Foreign nationals and Canadians seeking vacation or rental properties

How Lendworth USA Helps You Buy in a Shifting Market

Whether you’re buying your first home, refinancing, or acquiring an investment property, Lendworth USA provides tailored mortgage solutions to help you succeed in today’s market:

  • FHA, USDA, and VA loans for U.S. buyers
  • Foreign national mortgages — no U.S. credit required
  • Equity-based lending for investors and high-net-worth borrowers
  • Refinancing options to lock in better terms if rates drop

📞 Call Lendworth USA today to explore financing strategies designed for Florida’s changing housing market. Whether the market is hot or cooling, we help you move forward with confidence.

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