For more than two years, Florida saw its housing inventory rise steadily, with more homes listed each week. But now, that trend appears to be reversing. Recent data show that the state’s for-sale inventory is finally declining, raising as many questions as signals about where the market is headed.
The state’s inventory had climbed 110 consecutive weeks of increases, until now. While active inventory is still higher on a year-over-year basis, the drop since June is being watched closely by real estate professionals. According to Altos Research and Compass, single-family homes listed for sale recently stood at ~96,134, which is down from peaks above 100,000 earlier in 2025. Across all housing types, Redfin places the total listings in Florida at over 214,500, still up 5.4 % year over year, but off from the spring high of more than 241,000.
What’s driving the shift? Analysts suggest that many “urgent sellers” have already exited the market, while some remaining homeowners are pulling properties off the market or choosing not to list at all. As Chen Zhao, head of economics research at Redfin, put it, price softness is encouraging sellers to wait for better conditions.
Fewer New Listings + More Delistings = Vanishing Inventory
The decline in inventory is less about a sudden demand surge and more about dwindling supply. New listings across Florida have been shrinking year-over-year each month since May, by as much as 7.2 % in September. At the same time, delistings have surged: in August 2025, delistings jumped 60 % year-over-year. In markets such as Miami and Tampa, many sellers are retracting their homes from sale rather than reducing prices.
Paradoxically, even as inventory falls, market activity remains sluggish: pending listings are down, and homes are spending longer on the market. In fact, time on market has increased by about 14 days since September of last year.
The inventory decline could put a floor under price erosion and potentially stabilize, or modestly push upward home values. But don’t expect a sharp rebound. Zhao warns that persistent affordability issues, along with Florida’s climate and insurance risks, are likely to constrain price growth.
Economist Jake Krimmel notes the odd dynamic: normally falling inventory signals a heat-up, but in Florida’s case, both supply and demand are weak. Buyers are returning in limited numbers, encouraged by slight rate declines and discounts, but many remain on the sidelines amid economic uncertainty.
The state’s housing market also faces particular headwinds. Insurance costs, climate risk (especially in coastal areas), and affordability constraints weigh more heavily here than in many other states. All these factors are likely tempering both seller enthusiasm and buyer demand.
Still, this inventory shift is meaningful: it may mark the end of an era of near-endless supply growth in Florida and signal a winding down of the “boom market” conditions of the past few years.