Interest Rate Watch: How Current Trends are Impacting Florida's Housing Market

April 15, 2025

Knowing the latest trends is essential to stay relevant in any industry. When it comes to Florida's real estate market, this statement rings true in many ways. In the last couple of years, the demand has shifted across different parts of the state, while new laws are expected to continue changing the way real estate transactions are conducted.

Florida's Housing Market: What Has Changed?

Changes in aspects like demand and price range can be traced back to specific factors over the past few years.

• Population growth: With over 23 million residents, Florida has been consistently ranked as one of the fastest-growing states in the country. With a population that combines different backgrounds, the state has no shortage of places for newcomers to build a community. Its job market is also expanding at a faster rate when compared to other parts of the country.
  
  The state saw a surge of new residents between 2020 and 2022 as a result of the COVID-19 pandemic. While it's been years since Florida experienced such an increase, its population never stopped growing and this will always be a boost to the local housing market.


• Shifts in Florida's condo market: In our blog post "New Condo Laws in Florida: What Buyers Need to Know", we explored the new law that has regulated the sale of condos statewide since the start of the year.
  
  Well, according to a study from ResiClub, these safety inspections are one of the reasons why condo prices fell in 92% of Florida's markets. There's still a growth in active listings of condos and townhouses since a growing number of people seem to gravitate toward new multifamily constructions. All of this might lead to further adjustments in mortgage plans and new trends in the construction of residential buildings.


• Environmental concerns: From the wildfires in Los Angeles to Florida's hurricane season, many states across the country have seen their housing market become affected by environmental factors. When we focus on Florida, the prices of mortgage plans and insurance policies saw a spike after Hurricane Ian back in 2022, and the trend hasn't fully passed, as shown by current prices.

Impact on Housing Prices

Like in previous years, interest rates play a huge part in defining the market's performance in 2025. The average 30-year mortgage rate in Florida is 6.5%. While experts seem to agree that there's no immediate risk of a market collapse, the fact remains that mortgage rates are still too high by most people's standards, driving more people into renting a living space.

According to Newsweek, single-family home inventory has been on the rise, having recently reached its highest level in a decade. This is aided by all the factors we described above, and depending on the demand in the upcoming months, it might be the last straw that ultimately lowers housing prices and mortgage rates. St. Petersburg, Citrus Springs, Pace, and Miami Gardens take the lead as the cities with the highest surge of inventory.

The state's growing population also poses a challenge in terms of housing supplies. Developers are trying to stay ahead of the demand with the construction of new homes, but this entails an increase in the costs of materials. Some cities are addressing this through affordable housing initiatives and zoning adjustments, but only time will tell if these measures pay off.

Plan To Buy a House in Florida?

If the answer is 'yes', it can be frustrating to look for the perfect opportunity while trying to keep track of all the housing market trends. To avoid becoming overwhelmed, narrow down your options, not only when it comes to budget and property size, but also depending on the location and the local market. Remember that each county has its own standards when it comes to price ranges and closing costs.

We don't recommend rushing through things just to make the best of a seasonal trend because there's no telling how prices will change a month from now, and the housing market is heavily impacted by several economic factors at once. You can always enlist the assistance of a real estate agent to avoid wasting time without overlooking the perfect deal.

Whatever the case, you can trust the specialists at Key Title & Escrow. We'll guide you through the best options to address the affordability challenges posed by listings, mortgage costs, and insurance. This way, you can go into the process with the necessary knowledge about the local industry, so you won't be overwhelmed by Florida's competitive market. Our team makes sure that your needs are met upon finalizing the escrow agreement, and you can count on us all the way to the closing date.

Don't be the last to learn about the latest house market trends! Key Title & Escrow is always ready to give you all the information you need, along with specialized assistance to simplify your real estate transaction. If you have any questions, feel free to call (305) 235-4571 or toll-free at (800) 547-0006 to talk with our staff. And remember that you can also get in touch with us via the contact form on this page.