Miami Housing Market Shows Dramatic Cooling as Florida Boom Fades
Florida’s once-red-hot housing market is experiencing a significant downturn, with Miami showing particularly troubling signs of weakness, according to real estate data and industry reports.
KB Home, ranked 545th on the Fortune 1000 list, has reduced prices by more than $30,000 on homes in Florida to stimulate demand, Chief Operating Officer Rob McGibney told investors during a March earnings call. McGibney identified Florida as the company’s worst-performing market during the first quarter of 2025.
“In broad terms, Florida was our softest state in terms of sales demand in the first quarter,” McGibney said. “Because of that, we took the most pricing action there to find the market.”
Recent data shared by Reventure CEO Nick Gerli shows Miami’s housing market collapse is accelerating, with sales down 50% from their pandemic peak and 30% below long-term averages for March. Meanwhile, inventory in the Miami metro area has surged to 51,000 homes, the second-highest level on record according to Realtor’s inventory data.
Price growth in South Florida’s tri-county region is now declining, with values already dropping in Palm Beach (-2.5%) and Broward (-1.1%) counties year-over-year. Miami-Dade County properties are showing signs of significant overvaluation, with prices approximately 20.3% above long-term norms, suggesting further downside risk.
“The truth is, demand for Florida’s housing market has crashed. Nearly everywhere. For condos, and single-family homes. And Miami is no exception,” Gerli wrote.
The reversal follows Florida’s pandemic-era real estate boom, when the state led the nation in migration and price growth. KB Home now expects its average selling price for fiscal year 2025 to range between $480,000 and $495,000, down from $500,700 in the first quarter.
Industry analysts point to several factors driving the cooldown, including Florida’s high home insurance costs, rising HOA fees, and a significant slowdown in migration compared to pandemic peaks. Jacksonville has been particularly hard hit, with more than seven months of unsold inventory.
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