Florida’s real estate market is sending out an ominous signal to the rest of the U.S., as rising costs, climate change risks, and insurance issues begin pushing prospective buyers away. Once a hotbed for retirees and remote workers, Florida is seeing a slowdown in home sales and an uptick in residents moving out — especially in areas vulnerable to hurricanes and rising sea levels. As insurance costs skyrocket and extreme weather events become more frequent, affordability and risk are becoming major deterrents, leading experts to warn this trend could hit other states next.
The situation may serve as a preview of what’s to come for the national housing market, especially in coastal and climate-vulnerable regions. As banks grow more cautious and properties become harder to insure, the broader real estate landscape could undergo significant shifts. Analysts warn that the nation’s overvalued housing market — propped up by low interest rates and high inflation — may be reaching its breaking point, with Florida offering a glimpse into how complex and fast-moving those changes might be.
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