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housing crisis is unfolding in Florida, driven by a perfect storm of decreased homebuying and increased housing stock. According to Redfin, the number of unsold homes in the state rose nearly 23% year-over-year, leading to plummeting home prices. Some sellers have slashed prices by up to 40%, with others taking almost half a million dollars off their asking prices.

    Experts point to Florida's unaffordable housing fees, a glut of new post-pandemic housing stock, and natural disasters as contributing factors. The state's condo inventory is at an all-time high, while single-family home inventory isn't far behind. This oversupply has led to rare bidding wars, with homes needing to be nearly perfect and priced fairly to attract multiple offers.

    In January, Florida recorded the highest number of unsold homes since Redfin began collecting data in 2012, with 172,209 properties on the market. Pending home sales in the state fell 9.3% year-over-year, while over 41,000 home-purchase agreements nationwide fell through in January, with Florida seeing the largest share.

    The collapse of a condo building in Surfside in 2021 led to increased HOA fees due to new safety regulations and insurance costs. These collective costs can exceed mortgage payments, making homeownership unaffordable for many. Coastal properties in Florida are particularly vulnerable to climate risks and higher homeowner fees, with listings reaching an all-time high in eight of the state's metropolitan areas.

    The market is experiencing a price correction after impressive peaks over the last five years. Buyers now have more options than ever, leading to stale inventory piling up as a result. As one real estate agent noted, "A home basically needs to look like it's out of a magazine – and be priced fairly – to get multiple offers."