Top 10 Big Cities in Florida Where Home Prices Are Dropping.

As the real estate landscape in Florida continues to shift, ten cities stand out where home prices are experiencing notable declines. These changes reflect economic factors and challenges that have emerged, leading many potential homeowners to reassess their options.

1. North Port

Leading the list, North Port has faced a significant downturn, with home prices dropping over 10% year-over-year as of April 2025. By July, the broader North Port-Sarasota-Bradenton metro area recorded a 9.9% decline. Rising affordability challenges and a cooling market have contributed to this steep drop, resulting in one of the highest percentages of price cuts in the state.

2. Cape Coral/Fort Myers

The Southwest Florida region of Cape Coral/Fort Myers is seeing widespread price reductions. An April 2025 report revealed that nearly 40% of listings had price cuts. Data from July further indicated a 9.6% year-over-year decrease in median sale prices, signaling a shift in buyer sentiment.

3. Punta Gorda

Home values in Punta Gorda have also tumbled, with a staggering 14.5% decline noted as of May 2025. This area saw a drop of over 6% in median sale prices in April, reflecting ongoing challenges in the housing market.

4. Naples

One of the most dramatic declines occurred in Naples, where single-family home prices plummeted by 19.2% year-over-year as of May 2025, marking the largest plunge in the state. This downturn is particularly acute within the luxury market, which has faced heightened scrutiny and diminished buyer interest.

5. Sebastian-Vero Beach

Experiencing consistent declines, Sebastian-Vero Beach saw home prices drop over 10% in May 2025. Reports indicated a drop of 7.9% in April, alongside further significant price reductions in the following months.

6. Tampa

The Tampa region faces a “very high” risk of further price declines. Early 2025 data showed a 0.9% year-over-year decrease in home prices, with over a third of listings seeing price cuts. While some experts predict greater stability, the market’s volatility raises concerns.

7. Lakeland-Winter Haven

In Lakeland-Winter Haven, home prices have fallen over 2% year-over-year between mid-2024 and mid-2025. The rapid appreciation experienced during the pandemic has opened the door for corrections in this dynamic market.

8. Port St. Lucie

With over a third of home listings undergoing price cuts in early 2025, Port St. Lucie is grappling with declining demand. Although the yearly decline is less severe than elsewhere, the high percentage of reduced prices indicates pressures within the local market.

9. Ocala

Home prices in Ocala dropped 3% year-over-year as of April 2025. Like many inland cities, Ocala’s price increases during the pandemic are now reversing, reshaping the market landscape.

10. Deltona

Finally, Deltona reported a 2.9% year-over-year price drop as of April 2025. Additionally, over a third of sellers are cutting prices, underscoring the shifting dynamics in the area.

Factors Driving Price Drops

Several key factors contribute to this overall trend in home price declines across these cities. Affordability issues, driven by elevated mortgage rates and rising insurance premiums, are limiting buyer power. Increased inventory and declining buyer demand further compound the situation, leading to more homes sitting on the market longer. Additionally, the insurance crisis, particularly impacting hurricane-prone areas, has cooled buyer enthusiasm.

As these trends evolve, potential homeowners must stay informed, carefully considering market conditions before making a purchase in these fluctuating environments.