Florida’s housing boom from the pandemic is ending

• During the height of the pandemic, Florida became one of the most sought after destinations for home seekers across America
• But the housing boom now appears to be slowing, with home values ​​in the Sunshine State flatlining for the first time since 2011
• A Tampa realtor warned that the decline could be driven by Florida Gov. Ron DeSantis’ public war against the wake

The housing boom that sent Florida’s real estate market into a frenzy has finally begun to subside, following a pandemic-era surge that saw millions of Americans flock to the Sunshine State.

In the past three years, single-family home prices in Florida have risen by nearly 50 percent, as residents of the blue state raced to land a property down south.

But now, for the first time since 2011, home values ​​have leveled off and fewer home seekers are choosing Florida due to a noticeable decline in affordability.

“The fact that Florida is getting more expensive makes it less attractive to homebuyers,” Daryl Fairweather, Redfin Corp’s chief economist, told Bloomberg.

A Tampa realtor said that while Florida Gov. Ron DeSantis’ anti-Covid lockdown policies were once attractive, his recently launched run for the White House and public push for vigilante politics may drive away clients.

One of the reasons for Florida’s flat housing market is skyrocketing mortgage rates and insurance premiums, which have eroded the state’s attractive levels of affordability.

For years, potential residents have been lured south by Florida’s lack of a state income tax.

This was coupled with a desire to escape what many saw as excessive vigilante pandemic rules in many states, including mask mandates and business restrictions.

But while locals accepted Florida Gov. Ron DeSantis’ push to insert the state into national culture war debates when prices were down, the 2024 hopeful’s platform has been noted as a reason behind the recent decline.

Vanessa Charles, a real estate agent in Tampa, told Bloomberg that she saw an increase in business during the pandemic, but hostile policies are seeing this decrease.

“People look at Florida differently now,” she said. ‘Many families who moved here called and said “We have to leave”‘.

So far in 2023, 56 percent more people migrated to Florida than moved out, according to United Van Lines data. By comparison, this figure was 62 percent at the height of the pandemic in 2021.

The covid-driven housing boom also hit the value market for single-family homes, which have seen a significant increase in recent years due to the significant influx of new residents.

According to data from Florida Realtors, median home prices skyrocketed 27.7 percent at their peak in May 2021 — but fell to just 2.1 percent by March 2023.

Insurance premiums have also risen in the Sunshine State, as a series of devastating natural disasters coupled with high fraud rates have seen home insurance bills reach $6,000 on average — nearly four times the U.S. average.

Data from the Insurance Information Institute found that the average premium in the state has risen 100 percent over the past three years.

In Miami, which became the most sought-after destination for New Yorkers as vigilante pandemic politics drove them from the Big Apple, the decline in affordability has been particularly evident.

The influx of new residents has made the hotspot the most unaffordable city in the US, according to real estate tracker RealtyHop.

Although out of reach for most, some of the most opulent homes on Miami’s housing market show why it has earned a reputation for opulence.

According to Zillow, one of the most expensive mansions on the market is available for a staggering $85 million. Located in the exclusive Indian Creek neighborhood, the palatial property has been for sale for less than a month.

The terraced property has 14 bathrooms and seven bedrooms, and is equipped with sumptuous marble finishes, a home cinema and several pools.

And while many home seekers are set to be turned away from Florida’s housing crisis, a new $76 million mansion is still on the market for those feeling flush.

Located on the prestigious North Bay Road in Miami Beach, the property has everything a mega-rich homeowner could ask for.

The seven-bedroom, seven-bathroom property boasts panoramic coastal views, with west-facing views featuring year-round sunsets.

In nearby Ocean Blvd, a $77 million lakefront estate is also up for sale — and it even comes with a private yacht dock.

The stunning property offers six bedrooms, seven bathrooms and a private gourmet kitchen with island views.