Florida's Red-Hot Housing Market Cools Dramatically, Bankrate Report Finds
Florida's once-sizzling real estate scene has hit the brakes, according to Bankrate's 2025 Housing Heat Index. Data reporter and analyst Alex Gailey joined The Ryan Gorman Show to break down the report's surprising findings—especially what they mean for key Florida metros like Tampa, Sarasota, and Cape Coral.
"Four of the five coldest markets in our index are in Florida," Gailey told Gorman, pointing to Tampa, North Port-Sarasota, and Cape Coral among those that have seen a sharp drop in buyer demand. Meanwhile, Rust Belt and Northeast cities like Rockford, Illinois, and New Haven, Connecticut, now top the list as the nation's hottest housing markets.
The shift stems from a pandemic-era boom that sent home prices in Florida skyrocketing, spurred by an influx of remote workers chasing sunshine, space, and lower taxes. But that red-hot growth triggered its own reversal. As Gailey explained, "Home prices rose rapidly, and other costs like property taxes and insurance soared. Add in rising inventory and high mortgage rates, and demand has cooled significantly."
Buyers in Florida now find themselves in a more favorable position, with more homes to choose from and less pressure to act fast. However, elevated interest rates—hovering between 6% and 7%—are still sidelining many would-be buyers and discouraging current homeowners from giving up their low-rate mortgages.
While some may worry about a broader downturn, Gailey offered reassurance: "This isn't a crash. It's a correction." Florida's housing market, she said, is finding a new balance after years of intense, unsustainable growth.
To hear more about what's behind the cooling trend in Florida real estate—and when the market might heat back up again—listen to the full interview with Alex Gailey on The Ryan Gorman Show.