Florida Is Holding Strong in Affordability and Homebuilding: Can Gov. DeSantis Keep the State Building?

Florida’s housing market remains one of the most active in the nation, balancing rapid population growth with a steady stream of new construction.

The state earned a C+ on the Realtor.com® State-by-State Housing Report Card, part of the Let America Build campaign tracking how well states manage affordability and housing supply.

While Florida continues to build at an impressive pace, strong demand and rising insurance costs have kept pressure on buyers and builders alike.

Hoping to spur on action in the rest of the country, President Donald Trump recently put pressure on large homebuilders to increase construction nationwide. In a post on his Truth Social platform in early October, he accused major builders of hoarding lots to prop up prices—likening them to OPEC, which restricts oil output to maintain high prices.

“They’re my friends ... but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD,” Trump wrote. He urged Fannie Mae and Freddie Mac to intervene and “get Big Homebuilders going” to “restore the American Dream.” 

So, how can Florida's local government live up to Trump's initiative?

A state that’s still growing fast

Florida posted a total score of 59.4, just shy of a B-range ranking. The state’s median listing price of $445,826 in 2024 is high compared with many southern markets, but median household income of $69,226 keeps affordability within reach for many buyers. The Realtor Affordability Score came in at 0.52—lower than the national average but helped by strong new construction trends.

On the building side, Florida continues to outperform. The state accounted for 11.8% of all new home permits nationwide while representing just 6.8% of the U.S. population, giving it one of the strongest permit-to-population ratios in the country.

In fact, it was among seven states, along with Texas, California, North Carolina, Georgia, Arizona, and South Carolina, that accounted for over half of the permits for construction issued in 2024.

The new construction premium—the difference between prices for new and existing homes—was -4.0%, meaning new homes are actually slightly less expensive than resales on average. That’s rare nationally and highlights Florida’s unique strength in producing affordable new inventory.

Florida’s place in the regional picture

The most recent Realtor.com New Construction Insights report shows that the South dominates both affordability and homebuilding activity nationwide. The median listing price for new construction stood at $450,797, nearly flat year over year, while existing home prices rose 2.4%. That pushed the national new construction premium to a record-low 7.8%, showing that new builds are increasingly competitive across the country.

Florida continues to lead that trend. Cities such as Jacksonville, Cape Coral, and Deltona have seen new construction prices drop faster than nearly anywhere else in the country, thanks to a combination of builder incentives, expanding supply, and slowing resale markets. According to Realtor.com’s analysis, Jacksonville’s new construction prices fell 7.8% year over year, while Cape Coral–Fort Myers dropped 7.4%—two of the largest declines among major metros.

Those price adjustments have made new homes an increasingly viable option for first-time buyers, even as high mortgage rates persist. With demand still strong from both in-state and out-of-state movers, Florida’s ability to keep adding new supply has helped temper price spikes seen elsewhere.

“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies," says Shannon McGahn, executive vice president and chief advocacy officer at the National Association of Realtors®.

"NAR research shows that the U.S. has faced a persistent housing shortage for more than a decade, driving up prices and limiting options for buyers. Expanding housing supply creates jobs, supports small businesses, and affords families the opportunity to build generational wealth.”

Governor DeSantis’s push to expand attainable housing

In an effort to keep up momentum, Governor Ron DeSantis signed a $117.4 billion budget that took effect July 1, 2025. Key measures affecting homebuyers include $50 million for the Hometown Heroes Housing Program, which provides down payment and closing cost assistance for first-time buyers. The budget also introduces a permanent sales tax exemption on disaster preparedness items, such as batteries, portable generators, tarps, gas cans, smoke detectors, and carbon monoxide detectors.

On the same day, House Bill 623 regarding Builder Warranties became law. The bill requires builders of newly constructed homes to provide certain warranties for a specified period, remedy covered defects at the builder’s expense, and restore any damaged work. Builders may use a home warranty association to meet coverage requirements, and the warranty obligations remain in effect even if the home is sold or transferred.

Additionally, his administration continues to support the Live Local Act, which incentivizes mixed-income and workforce housing through tax credits, zoning flexibility, and infrastructure funding.

The 2025 update increased allocations to the Florida Housing Finance Corporation and expanded property tax exemptions for developers who include affordable units in new projects. It also encourages local governments to approve high-density housing near transit and employment centers.

One a provision in the bill gives developers a 75% exemption on property taxes when they build rental housing targeted for middle-income families. However, criticism of the initiative is that developers will prioritize tax incentives over affordability.

Still, DeSantis stands by his work. “This legislation provides record support for Florida’s workforce and their families to help them live where they work, while also providing historic support for our military communities and the families living near military bases,” said DeSantis said at the signing in 2025.

This article was produced with editorial input from Dina Sartore-Bodo and Gabriella Iannetta.