Is Florida real estate bubble about to burst?

[samhexum]

https://www.realtor.com/news/trends/foreclosure-rate-us-2025-data-attom/?cid=psc_nyp_syndication_trends_foreclosure-rate-us-2025-data-attom
 

 

Realtor.com/Getty Images

Foreclosures continued to rise last year, with Florida leading the nation, although mortgage defaults remain fairly low relative to historic levels.

In 2025, foreclosure filings were reported on 367,460 U.S. properties, up 14% from 2024 but still 25% below 2019, before pandemic disruptions altered the dynamics of the housing market, according to year-end data from real estate analytics firm ATTOM.

Florida had the highest foreclosure rate of any state last year, with foreclosure filings on 0.44% of residential properties in the Sunshine State. Following were Delaware(0.42%), South Carolina (0.41%), and Illinois (0.40%).

Edited Friday at 12:11 AM by samhexum
because?????

[EZEtoGRU]

How is the condo crisis currently playing out in Florida?  Is that the segment where a lot of the foreclosures are occurring?  12 months ago, there was lots of talk about the condo crisis in the older buildings in South Florida where upgrades and improvements were being required.  Special assessments were devastating many condo owners who didn't have the funds to pay.  It was said at the time, some were going to lose their condos and a glut of units would go on the market...likely bringing down prices in that segment of older structures.  I'm curious how that has played out. 

[TonyDown]

20 hours ago, EZEtoGRU said:

How is the condo crisis currently playing out in Florida?  Is that the segment where a lot of the foreclosures are occurring?  12 months ago, there was lots of talk about the condo crisis in the older buildings in South Florida where upgrades and improvements were being required.  Special assessments were devastating many condo owners who didn't have the funds to pay.  It was said at the time, some were going to lose their condos and a glut of units would go on the market...likely bringing down prices in that segment of older structures.  I'm curious how that has played out. 

A recent Newsweek piece reported the condo market in Florida is still not good.

 

 

Florida Condo Drops Price Nearly 50% as Housing Market Struggles

WWW.NEWSWEEK.COM

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A condo property located on 1 Beach Dr in Saint Petersburg dropped 49 percent in value over the last 10 years.

 

[Luv2play]

On 1/8/2026 at 7:14 PM, mike carey said:

Train from Florida to New York? That's positively un-American!

Actually Flagler built the train track from New York to get people to go to South Florida which was known as Mosquito County before being renamed Dade. It went all the way to Key West. This was well over a century ago. 

[+ JamesB]

13 hours ago, Luv2play said:

It went all the way to Key West. This was well over a century ago. 

 

I clearly need new glasses. I read, “I went all the way to Key West. This was well over a century ago,” and my only thought was, “Holy crap, how old are you?” 😂

[Nue2thegame]

A little bit of Florida history. The Flagler Overseas Railroad to Key West was finished in 1912 and operation ended after the Labor Day Hurricane of 1935, the strongest hurricane to ever hit the US up until that time with 400 casualties. Several sections of the railway were destroyed and were never rebuilt. 

The Surfside Condo collapse in June 2021 in which almost 100 people died revealed major structural deficiencies (known before the collapse) in many post WW II high rises in South Florida. The still ongoing structural reviews demanded by the state have resulted in mandatory renovations. For many of these buildings, the condo assessments to correct the deficiencies exceed or nearly exceed the condo owners mortgages and many are walking away, hence the large number of foreclosures. High rises built more recently and those without structural issues remain in demand  and their values have increased. There has been significant flux of people into the state (NY and California refugees) and out of the state (Canadians and South Floridians fed up with congestion). It’s difficult to predict what the net effect will be. 

[Hu.Len]

I hope it doesn't crash as my hobby would be affected, like some of you would too. I’ve noticed something after spending time in Florida and in a few other major cities, and I’m curious if others have observed the same. Florida’s work ethic feels different, not necessarily worse, but less intense, especially compared to cities where harsh weather forces a more structured, grind-oriented lifestyle. In cities with long winters, cold mornings, limited daylight, people tend to optimize time, move faster, and build routines around productivity because the environment almost seem to demands it.