Realtors Predict House Prices Will Plummet in These 8 Popular Florida Towns

The Sunshine State is blessed with historical towns dripping in culture and charm, ample beach access, and true to its name, plenty of good weather. Plus, no state income tax and an overall lower cost of living are more conducive to keeping more cash in your wallet.

According to data from Redfin, housing supply in Florida is up almost 20% year over year. More homes to choose from means prices are coming down, making a move to Florida more affordable in 2025 compared to recent years.

Knowing where home prices are likely to drop can help prevent you from getting priced out of a desirable area. We consulted REALTORS® and other real estate experts across Florida to get the inside scoop on where prices are expected to change this year.

If you’re considering relocating, now is the time to take advantage of the changing market. Read on to see which of these Florida hotspots may be right for you.

O-Town is more than magical theme parks and tourism. It's a dynamic and growing city, bringing in more of the banking industry each year. New construction is ongoing, and the median sale price as of January is $395,000.

Home to the University of Central Florida, Orlando offers the advantages of a major metro area with an inland location, where flood threats are lower. This also helps keep insurance costs lower compared to coastal areas.

“The beauty of Orlando is that you get the benefits of the coast without the price tag,” says George Philbeck, REALTOR® with eXp Realty. “We’re just 30 minutes to an hour away from the fun east coast beaches, and an hour away from stunning sunsets on the western coast.”

Tampa combines coastal charm with a burgeoning economy. With nearby white-sand beaches, a bustling nightlife, rich cultural and historical attractions, Tampa has a lot to offer its 403,000 residents. Cost of living remains just 2% below the national average, and the median sale price in January stands at $408,500, reflecting the city’s appeal as a well-rounded place to live.

“I have seen the market start to pick up since December,” says Lindsey Tucker, a REALTOR® with Charles Rutenberg Realty. An increase in new listings gives buyers more negotiating power and a better shot at getting their dream home.

This emerging hotspot offers a vibrant mix of culture, entertainment, and beach access. Business is also booming in St. Petersburg as major companies like Progressive Insurance are establishing headquarters in the area.

St. Petersburg’s charming, walkable neighborhoods and mild to moderate winters make it especially popular among snowbirds seeking a warm retreat. The $398,000 median sale price also helps.

“When you think of tropical Florida, this is a place people think of,” Tucker says. “People want to be here, even with the threat of storms.”

Port St. Lucie presents a taste of old-school Florida with a relaxed coastal lifestyle. With reasonable oceanfront home prices and accessible inlets, Port St. Lucie is a great choice for boating and fishing enthusiasts, and budget-conscious families.

Like many Floridian cities, Port St. Lucie’s housing market is experiencing a shift, with price cuts on 30% of listings and a median sale price of $400,000.

“High insurance costs and rising taxes have greatly impacted the prices in the St. Lucie area,” says Angela Yungk, a managing real estate broker at Arterra Florida. “Buyers who are looking for the Florida lifestyle without the Palm Beaches price tag could find great deals here.”

Fort Lauderdale offers a coastal lifestyle that appeals to many, especially those considering condo living. It’s a great option for people who work in Miami but prefer living in a less hectic environment.

“A lot of people come to Fort Lauderdale because you can still get a lot of bang for your buck,” says Damon Penn, REALTOR® with eXp Realty in Coral Springs. “Plus, people are excited for the year-round good weather and lifestyle.”

Despite hurricane risks and rising insurance costs, many are drawn to Fort Lauderdale for the good value in the housing market. As of January, 26% of homes had price drops, leading to a median sale price of $644,000.

Additionally, the job market is surging with relocations and new industrial developments, which are attracting more professionals and businesses.

With a cost of living 5% below the national average, Gainesville is one town that’s gaining popularity quickly while keeping housing prices affordable. The median sale price in January was just $265,000, which is 37% below the national average.

“I’m seeing Gainesville gaining popularity because of affordable land that’s less expensive to develop,” says Philbeck. Its inland location makes it less prone to direct hurricane hits, which keeps insurance costs low.

As home to the University of Florida, Gainesville thrives as a college town with a lively entertainment scene, local events, strong job market, and a youthful energy. UF Health Shands Hospital is also nearby, providing easy access for top-notch healthcare and research.

If you’re looking for luxury, Delray Beach may be your best bet. Nestled about halfway between Fort Lauderdale and Palm Beach, Delray has the perks of coastal living with a lower price tag — and homebuyers have a lot of choice right now.

“Inventory is up over 300% since the market’s peak in May 2022,” says John Wieland, real estate agent with eXp Realty. Additionally, almost 30% of homes saw price drops year over year. “Residential properties are holding their value, and I expect luxury homes to drop in price.”

Suburban comfort meets small-town charm in Oviedo. Located in Seminole County, which boasts one of the top-rated school districts in Florida, it’s an excellent choice for families looking for quality education and a strong sense of community.

“It’s an incredibly charming place that still has all the modern amenities people need,” says Philbeck. Oviedo offers diverse housing options, from new construction to well-established neighborhoods.

The housing market has softened, with 40.7% of homes experiencing price drops as of January, which presents opportunities for buyers.

Whether you’re relocating for a change of scenery or hoping to maximize retirement savings, Florida is a prime choice. The whole state is experiencing a shift in market, with higher inventories giving buyers more choice and better prices.

With average 30-year fixed mortgage rates expected to stay in the 6-7% range, it may behoove homebuyers to act sooner rather than later.