{"id":187180,"date":"2026-03-13T13:06:32","date_gmt":"2026-03-13T19:06:32","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=187180"},"modified":"2026-03-13T13:06:34","modified_gmt":"2026-03-13T19:06:34","slug":"florida-investments-decline-while-investors-move-to-other-markets","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/florida-investments-decline-while-investors-move-to-other-markets","title":{"rendered":"New Survey From Redfin Says Investors Are Turning Their Backs on Florida"},"content":{"rendered":"\n

Have Florida\u2019s days in the real estate investment sun come to an end?<\/span><\/p>\n\n\n\n

That appears to be the takeaway from a new report from brokerage\/listing site <\/span>Redfin<\/span><\/a>, which showed Florida as one of the few states where investment activity\u2014both mom-and-pop and institutional\u2014has declined, while nationally, purchases were up about 2% year over year in the fourth quarter of 2025.<\/span><\/p>\n\n\n\n

The Sunshine State has experienced a steep decline in investment activity, with major cities down double digits. In Orlando, the 16% year-over-year drop was the largest among the 38 most populous U.S. metropolitan areas Redfin analyzed. Fort Lauderdale was just behind with a 15% drop-off, while further north, Jacksonville was down 7%.<\/span><\/p>\n\n\n\n

Redfin\u2019s head of economic research, Chen Zhao, said in the report: <\/span><\/p>\n\n\n\n

\u201cSome investors are keeping their pocketbooks closed, which eliminates competition for everyday first-time buyers. The pandemic-era investor frenzy that crowded out so many first-time homebuyers has largely fizzled. There are still obstacles for buyers, like high costs, but investors are no longer one of them\u2014at least in many parts of the country.\u201d<\/span><\/em><\/p>\n\n\n\n

The Math for Investors<\/span><\/h2>\n\n\n\n

The reasons for the pullback from Florida are not hard to figure out: rising expenses and stalling rents. While this is true for much of the country, in Florida, those expenses are even more pronounced due to a steep rise in insurance costs.<\/span> <\/span><\/a><\/p>\n\n\n\n

Bankrate<\/span><\/a>\u2019s March 2026 homeowners survey put Florida\u2019s average premium at about $5,838 per year for a standard policy with $300,000 in dwelling coverage, more than double the U.S. average of $2,424.<\/span><\/p>\n\n\n\n

That analysis shows that Florida\u2019s typical homeowner pays roughly $3,400 more per year than the national norm, which is a killer for the modest <\/span>cash flow<\/span><\/a> that mom-and-pop investors rely on in the current era of high interest rates and rising taxes.<\/span><\/p>\n\n\n\n

A separate analysis won\u2019t give investors banking on <\/span>appreciation<\/span><\/a> much solace. Data and analytics site <\/span>Cotality<\/span><\/a> highlighted several Florida metros, from Cape Coral-Fort Myers to Punta Gorda, as among the most at risk of price declines over the next 12 months.<\/span><\/p>\n\n\n\n

A Meaningful Rate Change Could Be Monumental<\/span><\/h2>\n\n\n\n

\u201cLower mortgage rates and more inventory are starting to bring sidelined buyers back into the market\u2014and Florida stands to benefit more than most,\u201d Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors, told <\/span>Yahoo! Finance<\/span><\/a>. \u201cEven a small drop in mortgage rates can unlock thousands of new buyers in Florida. A drop from 7% to 6% could introduce over 6,000 additional buyers each month into the Orlando market alone.\u201d<\/span><\/p>\n\n\n\n

Higher inventory and lower rates could also bring cash flow back into the equation, especially if price drops coincide with meaningful rate cuts.<\/span><\/p>\n\n\n\n

But even though some of Florida\u2019s markets are stuttering, it doesn\u2019t mean every market in the state is a bad investment. As expected, <\/span>Florida Realtors\u2019<\/span><\/a> January 2026 outlook is rosier, specifically for homebuyers, describing the state\u2019s housing market as moving onto \u201cfirmer ground.\u201d It noted that sales have been rising consistently for the first time since rates began climbing in 2022 and that listings are being absorbed.<\/span><\/p>\n\n\n\n

Where Investors Can Still Cash Flow in Florida<\/span><\/h2>\n\n\n\n

However, for investors, the question is <\/span>ROI<\/span><\/a>, which is more likely to be found inland, in North and Central Florida, away from the overheated coastal markets.<\/span><\/p>\n\n\n\n

Multifamily & Affordable Housing Business<\/span><\/a><\/em>\u2019s 2025 outlook identified Jacksonville as a strong investment market, driven by affordability, new jobs, and household growth (the increase in occupied housing units). A <\/span>brokerage-based investing guide<\/span><\/a> on emerging Florida submarkets notes that North Central Florida, specifically Ocala and Gainesville, has appealing rent-to-price ratios and relatively lower insurance and tax burdens than the coastal southern part of the state. It also mentioned stable employment and lower-priced properties that can potentially clear $600-$900 in monthly cash flow.<\/span><\/p>\n\n\n\n

Other States Are Filling Florida\u2019s Void<\/span><\/h2>\n\n\n\n

As major markets in Florida lose some of their shine, Redfin\u2019s data shows investors gravitating to a diverse mix of markets, including parts of the West Coast, the Carolinas, and affordable \u201crefuge\u201d metros in the Northeast and Midwest. These include markets such as:<\/span><\/p>\n\n\n\n