What does the future hold for Florida real estate? You might find yourself pondering that question with 2025 just around the corner. While it’s impossible to say with 100 percent certainty what lies in wait for Florida real estate during the upcoming year, we can speculate based on the current state of the industry and insights from real estate analysts and experts.
Overall, the future still looks bright for the Sunshine State, thanks to the enduring appeal of its warm weather, tropical scenery and steady economic growth. Here are some notable Florida real estate trends to watch in 2025.
1. Florida housing markets will continue to be some of the hottest in the nation.
The Sun Belt dominates the top 10 housing markets for 2025 due to factors such as younger populations, recent sales growth likely to continue in the future, and significant inventory, including new construction, according to Realtor.com. Florida claims two of the 10 top markets for the upcoming year, with Miami-Fort Lauderdale-Pompano Beach ranking second and Orlando-Kissimmee-Sanford coming in sixth.
2. The Cape Coral-Fort Myers market will likely see substantial growth.
The Realtor.com 2025 Housing Forecast lists this Southwest Florida real estate market among the top 20 in the country. The Cape Coral and Fort Myers metro area ranks at No. 16, with a projected combined 2025 existing home sales and price growth rate of 22.8 percent.
3. Continued population growth will bolster Florida markets.
As of April 1, 2024, Florida’s population exceeded 23 million people for the first time, according to the state Demographic Estimating Conference. From April 1, 2024, to April 1, 2028, the Conference projects that the state will average 319,109 net new residents per year, or 874 per day. This influx will fuel demand for Florida real estate, including single-family homes and condos.
4. Mortgage rates could stay high, depending on nationwide economic conditions.
If the U.S. economy remains robust and the new president implements proposed tariffs and tax cuts, Redfin economists predict that the Federal Reserve will only reduce its policy rates twice in 2025. Tax cuts will increase the nationwide deficit, and tariffs could exacerbate inflation, keeping mortgage rates at nearly 7 percent during the upcoming year. However, Redfin notes that mortgage rates could also dip if tariffs and tax cuts aren’t implemented as planned or the economy weakens.
If you’re looking for your ideal house, condo, commercial real estate, or land in Southwest Florida, the Avalon Suncoast team is here to help. Explore your Florida real estate options today by calling 941-235-7474 or emailing sales@avalonsuncoast.com.