4 Florida Housing Markets That Have Plummeted in Value Over the Past Decade
Written by
Brooke Barley
Edited by
Rebekah Evans
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The Florida housing market has always been an interesting landscape. It attracts a significant number of retirees and anyone looking for a primarily sunny spot to live, but rising home prices might have deterred prospective buyers over the years.
Now, there seems to be a shift where some markets have seen drastically fewer sales and the values of their home have declined. Find out which Florida housing markets have seen some of the greatest value drops in the past 10 years according to experts.
Punta Gorda
Punta Gorda seems like an appealing spot to live, as it’s right by the water in southwest Florida, but it’s seen a decline over the past decade.
“Punta Gorda has been a shaky housing market for some time,” said Eric Preston, CEO of NewConstructionHomes.com. “Its decline began during the economic downturn in 2008, then surged around late 2019, only to recently experience another drop. Hurricane Ian in 2022 shoulders some of the blame, but the increase in supply, low demand and a spike in housing prices and mortgage rates softened its value.”
Jacksonville
Jacksonville has seen a more volatile market, but Preston said that recently, it just can’t keep up with the areas around it.
“Demand has dropped to roughly 40% below the level experienced during the pandemic — which was to be expected,” Preston said. “Many homeowners are locked into favorable mortgage rates, which is slowing the supply and the condo market has had to deal with new laws, including some for stricter structural assessments.”
West Palm Beach
Once again, Preston pointed to hurricane season as a reason why West Palm Beach has seen fewer home sales.
“West Palm Beach often feels the effect when the Florida housing market gets hit with financial challenges or natural disasters,” he explained. “Contributing to its annual decline is that pending home sales in West Palm Beach decreased by close to 14% year over year in the four weeks leading up to mid-November.”
Cape Coral
Southwest Florida city Cape Coral has seen a drop in the price of homes, which Preston attributed to an increased inventory that has remained unsold.
“The average sale price in Cape Coral in April 2024 was around $310,600, a 5.3% drop from a year earlier,” he said. “This is quite significant. One result of Cape Coral’s up-and-down housing market over the last decade is that a higher number of homes are staying on the market for longer, which is never a good sign.”
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