Is Florida's Downturn Coming for the Rest of the Country?

Florida is not the only state to see home prices below their peak—but it is the only one where prices are still falling—and fast. The state has been buffeted by idiosyncratic factors, like widespread assessments following a building collapse in 2021.

Home prices in Florida are now 3% below the peak they reached in May 2024.

This is in itself is not particularly meaningful. About half of the states are now below their recent peaks. And among these states, at 3% below the peak, Florida has fallen by less than many. Arizona, for example, is 7% below its peak. Washington DC is more than 9% below its peak…