U.S. Housing Market Hits Record $55.1 Trillion While Florida Values Drop $109 Billion

The U.S. housing market has reached a record value of $55.1 trillion, according to a new report released by Zillow on September 8, 2025. Since 2020, the market has grown by more than $20 trillion, fueled largely by rising home prices and the steady pace of new construction. However, growth has slowed significantly in the past year, with the market adding just $862 billion, a sharp contrast to the rapid gains of the pandemic era.

Florida, one of the fastest-growing housing markets over the last several years, is now showing signs of weakness. Zillow’s analysis revealed that Florida’s housing market actually lost $109 billion in value over the past year. While the state added more than $1.6 trillion in housing value between 2020 and mid-2025, recent declines in home prices across key metropolitan areas have offset earlier gains. Rising insurance costs and affordability challenges are eroding some of Florida’s competitive edge, particularly as buyers become more price-sensitive.

Major Florida cities are leading the decline. Home values in Miami fell 4.6% year over year, while Tampa dropped 6.2% and Orlando declined 4.3%. These decreases come at a time when many U.S. metros are stabilizing or even rebounding, underscoring Florida’s unique challenges. Sellers in the Sunshine State are increasingly resorting to price cuts, and homes are spending longer on the market, giving buyers more leverage than in recent years.

Despite these declines, new construction continues to play a stabilizing role in Florida’s housing sector. Nationally, new builds have added $2.5 trillion in value since 2020, and about 20% of Florida’s growth during that time came from new construction. This ongoing development has helped offset demand pressures, particularly in high-growth regions, though it has not fully shielded the state from recent declines in resale home values.

As of mid-2025, the average home value in Florida stands at $382,136, down 4.8% from a year earlier. Inventory is rising, with more than 206,000 homes currently on the market and over 36,000 new listings added in July alone. Homes are taking longer to sell, with the median time to pending now at 53 days. The gap between list prices and sale prices is widening as well, with the median sale-to-list ratio at just 0.971, signaling a shift toward a buyer-friendly environment.

For Florida homeowners, the message is clear: the market has cooled considerably from its pandemic-era highs, and expectations may need to be adjusted accordingly. Buyers, on the other hand, may find more negotiating room and better opportunities than they have had in years. While the broader U.S. market sets new records, Florida’s real estate tells a different story—one of correction, recalibration, and the possibility of renewed balance ahead.