Florida Real Estate Veteran Sees Market Stability Despite Affordability Hurdles

Written by:

Steve Marcinuk

Date:

18 Feb 2026

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The Northeast Florida real estate market in early 2026 presents a mixed landscape, with inventory stabilized but persistent affordability challenges for many prospective buyers. Beth Clark, a realtor with Coldwell Banker Premier Properties who has spent two decades working in the region, offers a perspective that challenges the common belief that interest rates are the main barrier to homeownership today.

A Military Market Foundation

Clark entered real estate after a 30-year career in accounting, drawing on her deep ties to Northeast Florida from her father’s military service. Her earliest clients were military families relocating to the area, but her business has since expanded beyond that niche.

Over the years, Clark built her business on referrals and long-term relationships rather than aggressive marketing. “After this amount of time, I’ve built up what they call a sphere of influence – people that I’ve worked with or that I know,” Clark says. Most of her new clients now come from past clients or their referrals.

This relationship-based approach has proven durable in a market where trust is critical. Clark notes that no amount of social media or advertising can compensate for a lack of trust between agent and client. “If somebody doesn’t trust the person they’re working with, then it’s a lost cause,” she explains.

The Real Affordability Crisis

Much of the industry conversation focuses on mortgage rates, but Clark’s experience suggests that high home prices are a far bigger obstacle for buyers in 2026. She has worked through periods of much higher interest rates, including the late 1970s and early 1980s, when mortgage rates soared above 15%. By comparison, today’s rates around 6–7% do not strike her as prohibitive.

“I think a six or seven percent interest rate is wonderful,” Clark says, recalling how she once waited nearly a decade to buy a home because rates reached 21% for second mortgages. When she finally purchased, she locked in a rate of 15.75% and made a 20% down payment.

Clark points to rapid home price appreciation as the real barrier. She cites a recent example: “I had one individual in 2020, I think it was $268,000, and last year we sold it for $595,000. That’s just not sustainable for anybody.” This type of increase has outpaced wage growth, pushing many buyers out of the market.

It’s not just home prices that have climbed. Clark notes that renovation costs have risen sharply, making it harder for buyers to afford necessary updates. “I have one contractor I called for a customer – it was a $2,000 charge in 2021, and when we called in 2024, it was a $6,000 charge. There isn’t a lot of material or supplies used in it, and they’re certainly not paying their employees three times what they were making.” This inflation in renovation costs adds another layer of difficulty for buyers already stretching their budgets.

Regulatory Changes

The past 18 months have brought operational changes to Florida’s real estate industry, most notably the move to statewide contract standardization. This replaced a patchwork of regional forms with a single set of documents, but the transition has been challenging for agents accustomed to local practices.

Clark explains that the new statewide contracts often include terms that don’t apply to Northeast Florida, creating confusion and extra work. The industry has responded with increased training, but the documentation is still evolving as agents and attorneys work through inconsistencies.

Market Dynamics

Inventory in Northeast Florida has increased since the severe shortages of 2020–2021, but market dynamics have shifted, particularly for builders. Clark observes that some builders continued their rapid pace of construction even as buyer demand slowed. “Some of the builders that are still building at the same pace they were building before that period – people weren’t buying at the pace they had slowed,” she says. “Now these builders have homes that they can’t move.”

This surplus has prompted builders to offer incentives such as 10% price reductions, covering closing costs, and boosting agent commissions to attract buyers. Homes that once sold within days now linger on the market for 90–100 days, a marked change from the pandemic-era rush.

Insurance and Inspection Obstacles

Florida’s insurance requirements are a growing headache for both buyers and sellers. While home inspections remain the most common reason deals fall through, insurance hurdles now play a central role in derailing transactions.

Clark explains that insurers often require major updates well before their expected lifespan ends. For instance, an architectural shingle roof rated for 35 years may need replacement after just 15 years to meet insurance standards. Water heaters must be replaced every 10 years, and HVAC systems are scrutinized closely. “People realize that in many cases, the seller doesn’t want to negotiate at a fair price,” Clark says. As a result, buyers often back out when faced with the combined cost of purchase and mandatory repairs to secure insurance.

Investment Opportunities

For investors, today’s market offers both opportunities and pitfalls. Clark says cash buyers are in the best position to take advantage of builder incentives and sidestep some financing issues. Three-bedroom, two-bathroom homes remain particularly attractive as rentals, typically needing fewer repairs and generating steady income.

However, Clark warns about the risks of builder-controlled financing. Builders often steer buyers to their preferred lenders with promises of covered closing costs, but this can lead to problems later. “They can also control the appraisals. We find too many buyers who push through, and then a year later, that buyer finds out their payment’s gone up a couple of hundred dollars because the lender underestimated the escrow.” This practice can leave new owners facing unexpected increases in their monthly payments.

Looking Ahead

Clark sees reasons for cautious optimism, but she expects improvement to be gradual rather than immediate. She predicts that a combination of interest rates falling to around 5.5% and modest price reductions would create a more favorable environment for buyers. “I think it’s going in the right direction, but it may take us until mid-summer to see it, or for people to feel good about it,” she says.

Florida’s enduring appeal – from its climate to its lifestyle options – continues to draw new residents, especially as harsh northern winters drive migration. This steady demand underpins the region’s housing market even as affordability and insurance remain real challenges.

What’s Next for Northeast Florida

The Northeast Florida housing market is entering a period of gradual normalization. Price growth is slowing, inventory is more balanced, and financing conditions may improve if rates dip further. However, persistent affordability and insurance issues will continue to shape buyer and seller behavior.

For buyers, patience and careful budgeting are crucial. For sellers, realistic pricing and willingness to negotiate on repairs or insurance requirements are becoming essential to closing deals. Investors will find opportunities, especially with cash offers and a focus on properties that require minimal repairs.

Despite the current hurdles, Northeast Florida’s strong fundamentals – population growth, economic diversity, and lifestyle appeal – remain intact. The market’s path forward will likely be defined not by dramatic swings but by steady adaptation to new realities, as both buyers and sellers adjust to a landscape where affordability, insurance, and local expertise matter more than ever.