S
outh Florida's housing market is experiencing a sharp reversal, with the number of homes for sale quadrupling since 2022 to its highest level in nearly a decade. This surge is driven by a drop in demand and homeowners deciding to sell due to rising costs and stagnant affordability.

    The state's aging condominiums are also grappling with new building safety legislation enacted after the Surfside condo collapse in 2021, which mandates regular inspections and sufficient reserves for repairs and maintenance.

    According to real estate analytics tool Reventure, there were nearly 52,000 active home listings across South Florida's tricounty area in April, a fourfold increase from 2022. This is attributed to locals being priced out, fewer people relocating to the area, and many current homeowners deciding to sell due to rising costs associated with homeowner association fees and property insurance rates.

    Nick Gerli, founder of Reventure, described this as a "perfect storm" that has led to a constriction in demand. He noted that households earning between $70,000 and $80,000 can no longer afford homes, making it difficult for them to qualify for mortgages.

    Florida's housing market may be heading into a multiyear correction, with declining prices needed to make homes affordable again and bring buyers back into the market.