B
y Alia Shoaib, a freelance news reporter for Newsweek based between London and Abuja. She primarily reports on U.S. politics and current affairs.

    A real estate analyst has sounded the alarm on Florida's housing market, warning it may be heading into a prolonged downturn reminiscent of the 2008 crash. Nick Gerli, CEO of Reventure, cited reduced migration to the state, an oversupply of homes, and record-high prices as key factors contributing to this trend.

    During the pandemic, many people flocked to Florida, driving investment in new homes. However, this trend has reversed, with far fewer people moving in and many leaving. As a result, analysts warn that the housing market could be heading into a prolonged downturn.

    Gerli noted that Florida now has 177,000 homes for sale, the highest number on record, while the entire Northeast U.S. has just 79,000 listings, the lowest ever recorded. Migration to Florida has dropped by 80% from its pandemic peak, leading to falling demand and affordability issues for local buyers.

    Gerli argued that the main issue facing the Florida housing market is the decline in inbound migration, not commonly cited factors such as high homeowners association fees or insurance costs. He believes that significantly cheaper prices could entice more people to move back and counteract these trends.

    Florida's housing market may be entering a multi-year price correction, with falling prices needed to restore affordability and attract buyers again.