Florida’s real estate market is no longer defined by the extraordinary conditions of the pandemic years. But that does not mean demand has disappeared or the state’s underlying strengths have changed.
Instead, Florida appears to be moving into a new phase: one with more normalized inventory and sales activity, continued economic and income growth, and significant long-term demand, but also real affordability pressures.
That is the picture emerging from the August 2026 issue of Florida Realtors®‘ The Economists Report and the ongoing analysis of Florida Realtors® Chief Economist Dr. Brad O’Connor.
The report finds that Florida continues to attract more net household income through domestic migration than any other state — about $21.2 billion annually.
And the story increasingly goes beyond traditional retirement migration. Households ages 55-64 generated the state’s largest net household income inflows in 2023-2024. Many are still in their peak earning years, have accumulated equity and may be considering relocation or second homes while continuing to work.
Those trends reflect a larger shift identified in the report: Florida is moving from a lower-cost growth market toward a more mature, higher-income and economically diversified environment.
The housing market also is becoming more balanced.
Active inventory has moved closer to historical norms. Median sale prices have remained around roughly the same level since 2022. Closed sales are moving closer to 2019 levels, condo and townhouse sales are recovering, and single-family home sales in 2026 are on pace for their strongest year since 2023.
Earlier this year, O’Connor summed up the improving outlook this way: “We don’t see any reason to be pessimistic about the housing market’s performance in 2026.”
But the data also explains why the market still feels difficult for many Floridians.
Housing prices have risen nearly twice as fast as household incomes since 2019, while mortgage rates, insurance and property taxes have pushed ownership costs higher. Homeownership carrying costs rose from about $1,530 per month in 2019 to $2,168 in 2024.
Affordability, therefore, remains one of the market’s biggest pressure points. Even modest improvements in borrowing costs can matter. As O’Connor noted earlier this year of incremental mortgage rate shifts, “That small decline was enough to unlock a good amount of pent-up housing demand.”
The takeaway isn’t that every Florida market is moving the same way. It’s that statewide data provides an important foundation for understanding what is happening, and local expertise helps put it into context.
Florida Realtors’ Research Department, led by O’Connor, provides housing statistics and economic analysis that help Realtors®, consumers, policymakers, businesses and the media better understand Florida’s residential and commercial real estate markets.
As The Voice for Real Estate® in Florida, Florida Realtors provides the research, market insight and expertise that help Realtors interpret changing conditions and better serve the customers and communities who rely on them.
Florida’s market will continue to evolve. Understanding the data behind those changes is where better-informed real estate decisions begin.
Read the August 2026 edition of Florida Realtors®‘ The Economists Report.
