Florida’s Real Estate Market Faces Upheaval as New Laws Reshape Industry

Written by:

Steve Marcinuk

Date:

19 Dec 2025

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Florida’s real estate market is contending with a wave of regulatory changes that are altering how developers, investors, and property owners approach projects. From sweeping condominium reforms following the Surfside collapse to debated affordable housing mandates, these laws are creating both hurdles and new opportunities across the state.

A Virtual Law Practice in a Changing Market

Chad Cummings, managing attorney at Cummings & Cummings Law, launched his law practice in 2022, just as Florida’s post-pandemic real estate surge gave way to a slower, more challenging market. His background—spanning accounting at PricewaterhouseCoopers, startup operations, and finance roles at American Airlines and JPMorgan Chase—equipped him to advise clients on increasingly complex transactions.

“Since I started my law practice after COVID, most of my work has developed virtually,” Cummings says. “Ninety-five percent of my clients are all over Texas and Florida—Jacksonville, Orlando, Miami, Tallahassee. I do have a physical office in Naples, but most clients are remote.”

This virtual model, more practical in the wake of the pandemic, has allowed Cummings to serve luxury home builders, mixed-use developers, and a growing number of short-term rental operators throughout Florida.

Condominium Reform and Its Fallout

The collapse of Champlain Towers South in Surfside triggered major legislative action. Under the revised Chapter 718 of the Florida Statutes, new reserve requirements have sharply increased costs for condominium owners. Cummings describes the result as “a cost of living and affordability crisis.”

“This law has dramatically increased the cost of living for people in condominiums,” he says. “If your HOA dues were previously $200 a month, now they’re $1,000. If they were $1,000, maybe now they’re $3,000 or $4,000.”

Retirees on fixed incomes are especially hard hit, suddenly facing special assessments for long-deferred repairs. In some buildings, individual owners are being billed $200,000 or more for structural work that can no longer be delayed.

This financial pressure has sparked a wave of condominium terminations. Developers are buying out entire buildings, offering owners above-market prices to acquire all units, dissolve the condo structure, and redevelop the site. “If a developer offers to buy your unit for 20% above market value, that’s an easy solution for many,” Cummings explains.

The Live Local Act: Statewide Zoning Override

Florida’s Live Local Act has become one of the state’s most controversial new laws, allowing developers to bypass many local zoning restrictions if they include affordable housing in their projects. The law shifts approval power from local governments to the state.

Local officials have pushed back, objecting to the loss of control over development. Ongoing disputes, such as the proposed redevelopment of Bal Harbour Shops, highlight these tensions.

“The Village of Bal Harbour is very upset,” Cummings says. “They want to exert control over the project, but the Live Local Act has severely curtailed their authority.”

While the law aims to address Florida’s housing affordability crisis by making mixed-use projects more feasible, it also raises concerns about infrastructure capacity and the erosion of local oversight.

Market Conditions and Investor Sentiment

Cummings saw Florida’s pandemic-era real estate boom firsthand, buying a Ritz-Carlton condominium in Naples for $240,000 in 2019 and selling it for $650,000 in 2022. That rapid appreciation has now stalled, and the market faces a glut of inventory.

“You have such an oversupply of inventory in virtually every market in Florida and Texas right now, with very limited exceptions, that the market is fairly cool,” he says. As an example, he points to a single-family home he’s been marketing: “Perfect condition, nothing’s wrong with it. We’ve gotten two offers in 12 months.”

Cummings expects continued weakness, especially in commercial real estate. Higher interest rates have made refinancing difficult for properties that previously relied on interest-only loans at low rates. “If your rate was previously 3% and now you’re paying 7%, all of a sudden that doesn’t pencil out. Maybe that’s not an asset you want to own anymore.”

Office and retail properties face persistent headwinds from remote work and online shopping trends. “Certain office spaces will never be as in demand as they were before COVID. Now that we know how to work remotely, you’re going to have a continuing glut of office space.”

Industrial and Strategic Development Opportunities

Despite these challenges, Cummings sees growth in industrial real estate, especially in fulfillment and warehouse facilities. He also advises clients to use the Live Local Act to make previously unworkable high-density residential projects financially viable. “How can I apply the Live Local Act in Florida to maybe make deals pencil out for high-density residential that didn’t make sense before that law?” he asks.

Cummings’ practice increasingly serves clients seeking an integrated legal and tax strategy. “At a certain point, a light bulb goes off in their head, and they say, ‘It’s not just about today’s transaction. I’ve got to start thinking long term.’”

Specialized Guidance for Short-Term Rental Operators

Short-term rental operators make up a significant part of Cummings’ clientele. These clients often lack experience with tax and liability issues. “When you start working with individuals who might be starting with one rental unit, whether it’s traditional rental or short-term rental like VRBO or Airbnb, they don’t know the first thing about taxes,” he says.

Cummings typically structures each property in its own LLC to limit liability and optimize tax and estate planning. This comprehensive approach addresses the rising complexity of real estate regulation and the need for specialized expertise.

Regulatory Changes Create Winners and Losers

Florida’s real estate market is in the midst of a major transition. New regulations, such as the Live Local Act, are enabling some innovative affordable housing projects but also sparking legal battles that will take years to resolve. Condominium reforms, while essential for public safety, are imposing significant financial burdens on existing owners while opening the door for developers to acquire and repurpose older buildings.

Investors and developers must now navigate a more complicated regulatory environment and adapt to lasting shifts in how people work, shop, and live. Cummings’ experience underscores the growing demand for advisors who can bridge legal, tax, and real estate considerations.

Florida as a National Bellwether

Florida’s real estate market illustrates broader national trends, but the state’s rapid growth, aging infrastructure, and aggressive regulatory experimentation make it a key case study for the industry. The state’s efforts to address affordability, improve building safety, and streamline development have national relevance, especially as other fast-growing states consider similar reforms.

Looking ahead, Florida’s real estate professionals must be prepared for continued legal and market volatility. The ability to interpret new laws, structure deals creatively, and anticipate long-term consequences will determine who succeeds in this changing landscape.

As the regulatory environment grows more complex, the value of specialized, cross-disciplinary expertise will only increase. For those able to adapt, Florida’s evolving market still offers opportunity—even as it tests the limits of what buyers, owners, and communities can afford.