2026 Real Estate Trends: Fla. Housing Market Stabilizing as Buyer Demand Builds

ORLANDO, Fla., Jan. 14, 2026 /PRNewswire/ -- Florida's housing market is entering a more balanced and opportunity-rich phase after several years of volatility, according to economists speaking Jan. 9 at the 2026 Florida Real Estate Trends summit, part of Florida Realtors® 2026 Mid-Winter Business Meetings.

The statewide event featured Florida Realtors Chief Economist Dr. Brad O'Connor and Dr. Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors®, along with a panel discussion that included O'Connor, Lautz and Odeta Kushi, vice president and deputy chief economist at First American Financial Corporation. The panel was moderated by Jennifer Warner, Florida Realtors economist and director of economic development.

Nationally, NAR forecasts that existing-home sales will rise 14% in 2026, as mortgage rates ease toward 6% and more homes come on the market – trends that could have an outsized impact in fast-growing states like Florida.

"After a few years of the market feeling stuck in second gear, we're finally seeing conditions move in a more constructive direction," Lautz said. "Lower mortgage rates and more inventory are starting to bring sidelined buyers back into the market – and Florida stands to benefit more than most.

"Even a small drop in mortgage rates can unlock thousands of new buyers in Florida," she added. "A decline from 7% to 6% would bring more than 6,000 additional buyers per month into the Orlando market alone."

Florida demand remains strong
Despite slower sales since 2021, Florida continues to attract new residents at one of the highest rates in the country. Florida Realtors research shows that 27% of people who moved into Florida homes in 2024 came from another state, and 5% from abroad, continuing a long-running migration trend.

"Florida is still one of the nation's top destinations for people looking to relocate for jobs, lifestyle and long-term opportunity," O'Connor said.

Insurance outlook improving
One of the most encouraging developments for Florida homeowners is the stabilizing property insurance market. Following reforms enacted in 2022 and 2023, to date, 17 new insurers have entered Florida, and premium growth has slowed sharply. Citizens Property Insurance now holds fewer than 400,000 policies, signaling renewed confidence in Florida's private insurance market, O'Connor pointed out.

Who is buying homes
Demographic shifts are reshaping Florida's housing market. First-time buyers now account for just 21% of all home purchases, while the median age of a first-time buyer has risen to 40. Cash buyers now make up nearly one-third of all transactions, a trend especially visible in Florida's competitive coastal and metro markets.

At the same time, professional guidance remains critical: 88% of buyers and 91% of sellers used a real estate agent last year.

"Today's market is more complex, and consumers know they need expertise to navigate pricing, financing, insurance and negotiations," Lautz said. "That's why working with a Realtor® is more important than ever."

A market moving toward balance
Economists emphasized that Florida is not facing a housing crash, but rather a return to healthier market conditions.

"Florida's population growth, job creation and housing demand remain strong," O'Connor said. "What we're seeing now is a market that's normalizing, and that creates real opportunity for buyers, sellers and Realtors alike."

Florida Realtors® is The Voice for Real Estate® in Florida. It provides programs, services, continuing education, research and legislative representation to over 230,000 members in 50 boards/associations. Florida Realtors® Media Center website is available at http://floridarealtors.org/newsroom.

SOURCE Florida Realtors