Is The Florida Real Estate Market In Trouble?

For many years, Florida has been a vibrant place with a thriving real estate market, and it is still a place where many find their lifelong home. However, events in recent years have changed things – climate change, skyrocketing insurance rates, and even outside factors like immigration concerns are creating problems for many prospective investors who want to be a part of the market. It is still very possible to find the property of your dreams, but it is crucial to be aware of how things might be changing.

Difficult To Find Insurance

One of the major reasons why the Florida real estate market is becoming more difficult to access is the increasing difficulty of obtaining appropriate insurance. In recent memory, hurricanes have been more severe, and natural disasters in general have occurred at a greater clip than in years past. More insurers are leaving the Florida market entirely, particularly those who used to offer flood and/or homeowners’ insurance – as of December 2024, Florida had the highest non-renewal rate (that is, an insurer choosing not to extend coverage) in the nation.

It is perhaps understandable, in a vacuum, that insurers would leave a market where little money can be made – but it places Florida homeowners in a very difficult position. It is becoming more common for property owners to face extreme rate hikes, or other restrictive conditions, in order to access coverage, and this prices many out of owning property in Florida. Others may face insurers who attempt to force unenforceable agreements on homeowners desperate for coverage.

Outside Factors Play A Role

In addition to making real estate purchases difficult for new investors, the difficulties in Florida’s insurance industry have had ripple effects which also contribute to the real estate market’s downturn. For example, an inability to procure insurance can effectively halt development of new properties, which can in turn affect both real estate opportunities and businesses in a given area.

Even factors like immigration concerns may play a role. The Florida Chamber of Commerce’s Migration Report estimates that just over 500,000 people left Florida for other states or countries, and given recent changes in U.S. immigration law, that may continue. While this may mean that properties open up for sale as people pack up and leave their homes, it will also likely have a deleterious effect on finding workers to build or renovate them. A potential investor must be well aware of these factors before taking the proverbial plunge.

Contact A Tampa Real Estate Attorney

It is still possible to find investment opportunities in Florida, but with the market changing from day to day, having the right Tampa real estate attorney on your side can help make the process of purchasing much smoother. Attorney Alicia Seward and the Seward Law Office are ready to try and assist you. Call our office today at 813-252-6789 to schedule a consultation.

Source:

newsweek.com/florida-stung-insurance-exodus-insurers-dump-residents-2003442