The Florida housing market is experiencing a notable surge in inventory as rising housing costs compel many owners to sell and an influx of new construction enters the market.

Industry experts have reported a marked increase in available properties across several key regions in the state, contributing to a shift in the market dynamics.

According to data from Miami Realtors, Broward County, for example, saw a 33.2% year-over-year rise in active listings for single-family homes, reaching 4,719 in December 2024. The total number of homes for sale in the same month increased to 10,669, reflecting a 7.4% rise from the previous month, as reported by Butler Title.

Despite the growth in inventory, buyer activity remains subdued.

Alexandra DuPont, a local real estate broker, noted that while single-family home sales in Broward County rose by 8.4% year-over-year, total sales decreased by 8%, indicating a cautious buyer sentiment amid high pricing.

Redfin's data echoed this trend, indicating that 2,033 homes were sold in December—down from 2,062 in the previous year.

The trend is not isolated to Broward County.

Across Florida, the total number of homes for sale reached 196,965 in December 2024, which is a 22.7% increase year-over-year, according to Redfin data.

The median sale price of a home in the state stood at $411,100, reflecting a rise of 1.8% compared to a year prior, while the national average was $427,430.

Factors contributing to the rising inventory include a significant number of new construction projects approved in the past few years, coupled with economic pressures such as increasing homeowners' insurance premiums and homeowners' association fees.

Recent data highlighted that HOA fees surged by 56% from 2019 to 2023 in Broward County, and homeowners' insurance premiums rose nearly 60% in the same timeframe, creating financial strain on property owners.

Additionally, new legislation mandating regular inspections of aging condominiums and the requirement for condo associations to establish reserve funds for repairs have further pushed some owners to market their properties.

As the housing market continues to adjust, experts suggest potential price softening could occur owing to the growing supply of homes.

Some forecasts predict that specific regions, such as Gainesville and the Space Coast, may experience drops in home prices by as much as 15% this year due to the increasing inventory and prior overvaluation of properties.

In tandem with these housing market developments, Florida's insurance sector is also undergoing significant changes.

A new property and casualty insurer, Mangrove, has been approved to operate in the state, joining a roster of 10 insurers that have entered the market since legislative reforms were enacted between 2022 and 2023. The new company plans to take on 81,000 homeowner policies from the state's insurer of last resort, Citizens, by mid-April 2024.

Insurance Commissioner Mike Yaworsky announced the approval, noting that for the first time in over two years, Citizens’ policy count has dropped below 1 million, signaling potential stabilization in the insurance market.

This follows a period where many major insurers reduced coverage or exited the state entirely due to rampant fraud and other challenges.

Yaworsky indicated that the reforms have encouraged new entrants into the market, fostering competition that could ultimately enhance coverage options and potentially lower rates for Florida homeowners.

As Florida navigates these complex developments, the intertwined nature of housing and insurance markets remains critical in assessing the overall wellbeing of residents and stakeholders within the state.