Florida Real Estate Faces Structural Downturn Amid Rising Climate-Driven Insurance Costs

Florida's real estate market is experiencing a decline influenced by rising insurance premiums and condominium fees, which add financial pressure on homeowners. These increased costs are connected to the impacts of extreme weather events, complicating the traditional market dynamics driven by factors like climate and tax benefits.

Experts characterize this trend as a structural shift rather than a temporary market fluctuation, indicating ongoing challenges for the state's housing affordability. The situation highlights the intersection of climate-related risk, insurance market adjustments, and real estate economics, underscoring a need for stakeholders to adapt to this evolving baseline in property valuation and insurance costs.