New Construction Along Florida's Gulf Coast Is Holding – Resale Is Another Story

Written by:

Alejandra Rodriguez

Date:

22 Jun 2026

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The headlines about Tampa Bay’s real estate market tell one story. The reality on the ground tells several different stories. While broad market data points to rising inventory, longer days on market, and price softening across the region, builders and developers working in specific submarkets are seeing something more nuanced, and in some cases, considerably more resilient.

Jon DeBellevue, founder and qualifying contractor at Glades & Bay Construction and a licensed realtor with LPT Realty, has spent the better part of a decade working across Tampa and Sarasota, building custom homes and helping clients buy, sell, and invest in the region. His perspective, shaped by daily site visits, client consultations, and deal underwriting, offers a ground-level view that broader market reports tend to miss.

A Correction, Not a Collapse

The most important context for understanding Tampa Bay right now is the scale of the price correction that has unfolded over the past three years. Prices have dropped between 20 and 30 percent across the general area, according to DeBellevue, driven largely by sellers who overpaid during the COVID-era surge. “A lot of sellers overpaid during the COVID market,” he notes. “They drove prices up, and so naturally we have to have a correction back to an affordable place for home buyers.”

When interest rates climbed and inventory expanded, buyer activity pulled back, and prices followed. For investors who purchased during the peak, particularly those in the fix-and-flip space, the consequences have been significant. Many are now sitting on multiple properties acquired in the last 24 months that are underwater. “To see it firsthand is astonishing,” DeBellevue says.

But the correction has not been uniform. That distinction matters considerably for anyone making investment or development decisions in the region today.

Where the Market Is Still Holding

Certain submarkets have proven largely insulated from the broader softening. Areas like South Tampa, downtown St. Petersburg, downtown Sarasota, and coastal communities, including St. Pete Beach, Clearwater Beach, Redington Shores, and Anna Maria Island, continue to see new construction and resale activity outperform regional trends.

DeBellevue points to appreciation rates still running at seven to ten percent annually in the strongest submarkets: a figure that stands in sharp contrast to the regional headline numbers. “You can’t generalize an entire market based on one article or what one person is saying,” he explains.

This hyperlocal reality shapes how Glades & Bay approaches project selection. New construction and small multifamily developments are both outperforming resale across the board, according to DeBellevue, which has kept the firm active even as the broader market digests its correction.

What Builders Are Watching Before Breaking Ground

If you’re considering a new build in this environment, the due diligence process is more complex than many buyers expect. DeBellevue walks clients through a framework that begins well before any plans are submitted. Key deal-killers include utility or municipal encroachments on a site, the potential for eminent domain, soil conditions that might require specialized foundation work, and flood or wind exposure in coastal areas.

On the permitting side, timelines have lengthened in Hillsborough County, where initial permit approvals can take anywhere from 45 days to 3 months, depending on the municipality. Sarasota tends to move somewhat faster, but neither market is straightforward. Investors who have attempted to shortcut the process with unpermitted work have frequently returned to Glades & Bay to help resolve the resulting complications.

The Insurance Question, Clarified

Florida’s insurance market has received considerable attention, with rising premiums and flood zone designations cited as growing obstacles to construction and ownership. DeBellevue offers a more specific read on who is actually bearing the brunt of those increases.

The owners most affected are typically those in single-level homes in flood zones. Owners building elevated homes, by contrast, receive meaningful discounts on their premiums. “The people affected most are the people who are in older homes in flood zones,” DeBellevue explains. “The new homes being built in flood zones receive major insurance discounts.”

This distinction has practical implications for developers and buyers evaluating coastal sites. The insurance burden that dominates media coverage is largely concentrated in the existing housing stock, not in well-designed new construction.

How Investors Are Adjusting

The investor mindset has changed noticeably over the past year, shifting from the rapid, risk-tolerant approach of the COVID era to a considerably more deliberate one. DeBellevue says his firm is now underwriting more conservatively and building in a greater hedge against potential market downturns. “All investors right now are being a lot more conservative and apprehensive,” he says.

On the buyer side, the mood may actually benefit well-positioned sellers. Buyers who had been waiting for prices to correct are beginning to re-engage. “I have had a lot of my buyers who were waiting to purchase now reaching out ready to buy because the market is down,” DeBellevue notes. The caveat is that selectivity has increased significantly. Homes that are priced accurately, well-renovated, and located in desirable neighborhoods are moving without difficulty. Properties that don’t meet those criteria are sitting.

Economic Tailwinds Worth Watching

Beyond the housing market itself, DeBellevue is paying close attention to economic development activity flowing into Tampa Bay. Infrastructure investment, warehouse and distribution expansion, and business relocations are all contributing to job growth that he sees as a stabilizing force.

Hundreds of millions of dollars in spending are arriving not just from infrastructure improvements but also from businesses moving warehouse, industrial, and distribution operations to the region, according to DeBellevue. “That brings jobs and helps keep our economy stable,” he says.

An Approach to Custom Building

On the business side, Glades & Bay is expanding its project pipeline along the Gulf Coast with a model designed to reduce the time and complexity that typically characterizes custom home construction. The firm has developed a process that allows buyers to select from existing floor plans and customize finishes, rather than starting from scratch. DeBellevue says the approach typically gets projects moving two to three months faster than a conventional custom build.

For a market where permitting delays and construction timelines are already significant variables, that efficiency has real value for clients trying to manage costs in a more cautious investment environment.

The broader takeaway from DeBellevue’s perspective is straightforward: Tampa Bay in mid-2026 is not a single market behaving singly. Investors and builders who treat it as one are likely to either miss opportunities in resilient submarkets or underestimate risk in softer ones. The data matters, but so does knowing which streets you’re actually talking about.

About the Expert: Jon DeBellevue is the founder and qualifying contractor at Glades & Bay Construction and a licensed Realtor with LPT Realty, serving the Tampa and Sarasota markets with a focus on custom home construction and real estate investment.

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.