Florida’s housing market downturn is getting more severe, with foreclosures rising, home values falling, and some sellers now taking losses of $100,000 or more.
I traveled to Davenport, Florida, to see what the housing market looks like on the ground. In one neighborhood, I found a lender-approved short sale where the owner bought the home near the peak of the pandemic boom and is now facing roughly a $90,000 loss. The lawn is overgrown, the home appears vacant, and neighbors say nobody has lived there for months.
And this isn’t an isolated example. Nearby, townhomes that sold for around $282,000 as new construction in 2021 are now being listed close to $200,000. Other houses have wiped out almost all of their pandemic appreciation despite being only a few years old.
Florida is also now one of the leading states for foreclosure activity in America. Foreclosures are still far below the extreme levels reached during the 2008 housing crash, but that raises an important question: if some Florida homes are already falling 20% to 30% while mortgage distress remains relatively low historically, what happens if foreclosures continue rising?
The biggest declines so far are showing up in markets such as Punta Gorda, Cape Coral, Fort Myers, Sarasota, and other areas along Florida’s Gulf Coast. Charlotte County home values are down roughly 22% from 2022 levels, while Lee County is down around 17% and Sarasota County is down approximately 16%.
Investors are also pulling back. Purchases from real estate investors have fallen sharply from pandemic levels as property taxes, insurance costs, and declining rents make Florida housing less profitable. In Davenport, I found a home owned by Wall Street landlord Main Street Renewal where the asking rent has been cut by roughly $250 per month.
At the same time, Governor Ron DeSantis is pushing major property-tax reform in Florida. Proposals could significantly increase the homestead exemption for qualifying homeowners, potentially reducing property-tax bills for millions of residents and changing the economics of owning a home in Florida.
In this video, we cover:
• Florida’s rising foreclosure problem
• A nearly $100,000 loss on a Davenport short sale
• Homes selling 20%–30% below previous values
• Why Polk County boomed during the pandemic
• Florida counties with the biggest housing declines
• Why Miami has held up better than Southwest Florida
• Wall Street investors cutting rents
• Why investor demand has collapsed
• Governor DeSantis’ property-tax proposals
• What could happen to Florida home prices in 2027
If you’re thinking about buying a home in Florida, make sure you understand what prices are doing in the specific ZIP code you’re looking at. Reventure App provides home-price forecasts, overvaluation data, market scores, and our Listing Analyzer to help buyers determine how much they should offer.