Florida's Real Estate Market Stabilizes: Key Trends for 2026

An Overview of Florida's Housing Market in 2026

As we step into 2026, Florida's housing market is poised for a transformation. Following several years of rapid fluctuation, economic experts at the 2026 Florida Real Estate Trends summit have announced a more balanced and opportunity-rich phase for the market. This shift is anticipated to favor both buyers and sellers, as conditions improve significantly.

From turbulent times to a better landscape, the summit hosted esteemed speakers, including Dr. Brad O'Connor, the Chief Economist at Florida Realtors, and Dr. Jessica Lautz from the National Association of Realtors. They highlighted the pivotal shifts in the market dynamics while addressing the underlying factors that influence buyer behavior. Dr. Lautz stated, "After a few years of the market feeling stuck in second gear, we're finally seeing conditions move in a more constructive direction."

Trends Driving the Market

One of the major factors driving this change is the easing of mortgage rates, which are projected to approach a more manageable figure of around 6%. As rates decrease, more properties are expected to hit the market, resulting in a surge of buyers re-entering the scene. Economists predict a 14% increase in existing-home sales nationwide, with Florida set to benefit significantly from this trend.

In fact, a minor reduction in mortgage rates can attract thousands of new prospective buyers. Dr. Lautz pointed out that even a shift from 7% to 6% could introduce over 6,000 additional buyers monthly into the Orlando area alone. This influx signifies an exciting opportunity for sellers looking to capitalize on the revitalized interest in the market.

Continued Demand Amidst Challenges

Despite facing slower sales in recent years, Florida remains a top destination for relocators. A commendable 27% of new homeowners in Florida came from other states in 2024, highlighting the continuous appeal of the Sunshine State. Dr. O'Connor emphasized that Florida remains attractive for individuals seeking new job opportunities, lifestyle improvements, and long-term investments in property.

Insurance Market Recovery

Another promising aspect for Florida homeowners is the stabilization of the property insurance market. Reforms from 2022 and 2023 have led to the entry of 17 new insurers, with premium growth dramatically slowing. Citizens Property Insurance has reduced its policies to fewer than 400,000, indicating a strong revival of confidence in the private insurance sector.

Who's Buying?

Changing demographics are significantly altering the landscape of homebuyers. First-time buyers now represent just 21% of all transactions, with their median age growing to 40. Furthermore, cash purchases account for nearly a third of all home sales, particularly in Florida's competitive coastal markets. As such, it is more critical than ever for buyers to seek professional guidance in navigating the complexities of the current housing market. Based on current data, 88% of buyers and 91% of sellers relied on real estate professionals last year.

"Today's market is more complex, and consumers know they need expertise to navigate pricing, financing, insurance, and negotiations," stated Dr. Lautz. The reliance on experienced real estate agents underscores the importance of gaining insight in an increasingly intricate market.

Looking Ahead: A Balanced Market

Economists agree that Florida is not on the brink of a housing collapse, but rather on the verge of returning to healthier market conditions. "Florida's population growth, job creation, and housing demand remain robust," reiterated Dr. O'Connor. The emerging balance presents genuine opportunities for buyers, sellers, and real estate professionals alike.

In summary, Florida's housing market is undergoing a significant transformation in 2026. With positive trends emerging in terms of mortgage rates and demographic shifts, now is a crucial time for stakeholders to stay informed and capitalize on the new landscape of real estate. Florida Realtors continues to support its over 230,000 members with essential services and advocacy, driving forward the voice of real estate across the state.