Florida Has Too Many Houses - Climate Crisis 247

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The inventory of homes for sale in the US has been tight for three years. Mortgage rates near 7% have given people with 3% mortgages from half a decade ago a reason to keep the homes they have. Inventory started to rise again recently, and much of the new inventory on the market is from climate-plagued areas, particularly in Florida.

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A new study from Resiclub shows that home price growth has “softened,” a sign of rising inventory. “National active listings are on the rise (+34% between September 2023 and September 2024); however, we’re still well below pre-pandemic levels (-23% below September 2019).” The recent trend has not entirely reversed the one that began because of the COVID-19 pandemic.

States With Rising Inventory

Seven states, however, have posted numbers that are above pre-pandemic levels. These are Tennessee, Texas, Idaho, Florida, Colorado, Utah, and Arizona. Most of these are not surprising. “In Florida, the biggest inventory increases initially over the past two years were concentrated in sections of Southwest Florida. In particular, in markets like Cape Coral, Punta Gorda, and Fort Myers, which were hard-hit by Hurricane Ian in September 2022.”

The effects in Southwest Florida may be mirrored by people who have decided to leave Phoenix, which had 100 days last summer when temperatures were over 100 degrees F. Temperatures have spiked in hot and crowded Houston, Austin, and San Antonio.

The increase in inventory could be an early sign of reverse migration. People who moved south for better weather and lower taxes have begun to regret the decisions.