Florida Housing Costs Are Squeezing Homeowners Statewide

Written by:

Steve Marcinuk

Date:

30 Apr 2026

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Florida’s residential real estate market looks stable on paper. Prices in many areas have not collapsed, transaction activity continues, and media coverage still leans toward the idea of a resilient Sunbelt market. But for those working directly with distressed homeowners, the picture on the ground is considerably more complicated.

Ron Myers, President of Ron Buys Florida Homes, has spent more than two decades in Florida real estate, starting in mortgage lending before moving to direct acquisitions. His firm buys homes throughout Florida, focusing on sellers who prioritize speed and certainty over maximum price. What he observes daily points to a market under mounting pressure. The cause is not a single crisis but a steady accumulation of costs that has made homeownership untenable for a growing number of Floridians.

Rising Costs Push Owners Out

The most consistent theme in Myers’ work is not foreclosure or job loss. It is the slow buildup of carrying costs that has made homeownership increasingly difficult for many Florida residents.

Myers points to his own experience: his homeowner’s insurance rose from $1,352 in 2017 to just over $5,800 today, while his property taxes climbed from roughly $2,000 to $3,000 to over $6,500. “That’s almost a mortgage payment in addition to what they’re already paying,” he says.

For many homeowners, the math has stopped working. They bought at elevated prices, their properties were reassessed at higher values, and they are now absorbing insurance premiums that have risen sharply. Meanwhile, interest rates remain well above the historic lows many had hoped to refinance into.

The Gulf Coast has been hit especially hard. Multiple hurricane seasons have compounded the insurance problem, and Myers is seeing meaningful price reductions in that region, with listing drops ranging from five to twenty percent. Many of those sellers purchased between 2021 and 2023 and are now trying to get out from under properties they can no longer afford to hold, squeezed by rising insurance costs, higher tax assessments, and elevated purchase prices.

Buyers Gain Cautious Advantage

While costs are squeezing sellers, the resulting conditions are creating openings for investors and buyers willing to move carefully. Myers is direct about how his own underwriting has adjusted.

During 2021 and 2022, his firm could buy properties close to automated valuations because the market was rising and margins were forgiving. Now, with prices trending downward, a property’s value today may be lower than its value three months from now. That shift changes how deals are evaluated.

Myers previously reviewed six-month sales windows to assess comparable values. Now he focuses on 90-day periods. He pays close attention to how long active listings have been on the market. Holding costs, including financing, taxes, insurance, and labor, affect investor timelines specifically, making longer holds genuinely costly in a declining market.

Myers notes that while buyer numbers have grown, most are hesitant to act. Move-up buyers in particular are choosing to stay put rather than take on new debt at current prices and rates.

Seller Profiles Are Shifting

The profile of sellers reaching out to Myers has changed over the past year. Inherited properties and homes in disrepair remain a steady source of leads. A newer category has grown more prominent: homeowners who listed with an agent, did not sell, and are now looking for an alternative.

Many of these properties were overpriced relative to their condition. They featured dated interiors competing against fully renovated homes, or they lacked amenities that nearby comparables offered, such as pools. Myers describes a recent case in which an agent suggested a price above $625,000 based on comparables that included significant upgrades the subject home lacked.

The pattern Myers sees repeatedly, from the perspective of a cash buyer operating in the distressed segment, involves agents pricing high, then cutting gradually, sometimes by three to fifteen percent, until the home finally sells. Often the final price is close to what a direct buyer had offered months earlier. For some homeowners, the timeline and certainty of a cash offer may offset the price difference compared to a traditional listing, though the right path depends on each seller’s priorities and circumstances.

Investor Margins Keep Shrinking

On the investor side, the cost of bringing a property to market has increased substantially. Both labor and materials are more expensive, and the margin for error has narrowed. A full kitchen renovation now runs $15,000 to $25,000, depending on the market, according to Myers.

Many investors are reducing the scope of renovations to preserve margins, repainting cabinets rather than replacing them, or swapping out countertops while keeping existing flooring. Investors doing consistent volume with established crews can manage costs through scale and supplier relationships. For those doing one or two deals at a time, the numbers are tighter.

Two Fixes Could Help

Two developments could meaningfully change conditions for Florida homeowners. The first is a proposed property tax relief measure that voters may weigh in on later in 2026. Myers is cautious about expectations but believes any meaningful reduction would ease pressure on homeowners and potentially stabilize some of the forced selling the market is currently absorbing.

The second is insurance market competition. “I would love to see more carriers come in and compete for homeowners’ insurance policies,” Myers says. “There’s not much competition, and that’s driven the prices up.” Without new carriers willing to underwrite Florida risk, premiums are unlikely to fall significantly, regardless of what happens with interest rates or home prices.

On the question of rate cuts, Myers offers a perspective that runs against conventional wisdom. He argues that a return to three percent rates would not help affordability. It would simply drive prices higher again, recreating the same problem the next time rates rise.

The underlying issue, in his view, is not the cost of borrowing. The total cost of owning a home in Florida, including taxes, insurance, maintenance, and financing, has outpaced what most buyers can realistically afford. Until those structural costs come down, the financial stress homeowners are experiencing is unlikely to resolve on its own, regardless of what broader market data suggests.

About the Expert: Ron Myers is the President of Ron Buys Florida Homes, a residential acquisition firm operating throughout Florida. With more than two decades of experience spanning mortgage lending, retail real estate, and direct acquisitions, Myers specializes in working with homeowners who need a faster, more certain path to selling outside the traditional listing process.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.