Florida’s sun-soaked southwestern coast, known for its wealthy enclaves and retirement appeal, is grappling with the steepest home price drops in more than a decade.
From Sarasota’s luxury listings to Punta Gorda’s booming developments, property values have fallen at rates not seen since the post-recession days of 2011.
Despite rising home prices across most of the US, certain Southeast metros, especially in Florida, are bucking the trend.
Data from the National Association of Realtors (NAR) paints a grim picture. The Punta Gorda area witnessed a 6.5% price drop this past quarter, pulling the median down to $350,000. North Port-Sarasota-Bradenton wasn’t far behind with a 5.8% fall, pushing median prices to $485,000.
Cape Coral-Fort Myers also recorded a 3.7% dip, adding to earlier declines this year. Economist Lawrence Yun from NAR highlighted a cocktail of challenges pressuring the market, including increased housing supply, skyrocketing insurance premiums and accelerated construction in recent years.
Tony Barrett, president of the Realtor Association of Sarasota and Manatee, noted in the September market report that hurricanes have compounded these woes.
Recent storms not only left behind devastation but also spooked potential buyers, delaying transactions and driving down confidence.
Adding to the chaos, Hurricane Debby drenched the coast in August, followed by the devastating arrival of Hurricanes Helene and Milton in the fall, which left destruction in their wake.
As insurance prices soar and investors pull back, the once-frenzied market is slowing down.
Florida isn’t alone in this reversal. San Antonio, Texas, and Durham, North Carolina — cities that saw their real estate boom with over 20% gains two years ago — are now facing price corrections.
And while national home prices inched up by 3.1% in the third quarter, with the median hitting $418,700, the pace of growth is slowing, indicating that affordability is still a major concern in many places.