For generations, buying a home was the foundation of the American dream — the surest way to build wealth and stability. But in Florida, that dream is slipping further out of reach. Despite a cooling real estate market, affordability remains one of the state’s biggest challenges. A closer look reveals a mix of international demand, regulatory pressures, and a lack of political will at the state and local level driving this crisis.

International Buyers Flooding the Market

Florida has long been a magnet for international investors, and that trend is accelerating. According to the National Association of Realtors, Florida remains the top destination for foreign homebuyers, accounting for 21% of all U.S. international purchases. By comparison, California — in second place — stands at 15%.

Nowhere is this more visible than Miami. A recent report from Miami Realtors found that nearly half (49%) of new construction sales in Miami were to international buyers in the 18 months ending June 2025, with the vast majority (86%) coming from Latin America.

Global instability is fueling this demand. Facing inflation, political turmoil, and unstable currencies, many Latin Americans are turning to Miami real estate as a safe haven. As Yuval Golan, CEO of Waltz, explained, “Latin Americans may be seeking to preserve their wealth in USD through U.S. real estate.”

For these buyers, Miami offers more than just stability. New developments with modern amenities, pre-construction discounts, and fewer maintenance concerns make them ideal for investors who live abroad. Cash transactions — nearly half of all foreign purchases — give them an edge over local buyers dependent on mortgages.

The result? Domestic first-time buyers are priced out of the market, competing not only with wealthy Americans but with global capital using real estate as a hedge.

The Regulatory Squeeze: Surfside’s Legacy and Rising Costs

On top of global demand, Florida’s regulatory environment is reshaping affordability. After the tragic Surfside condo collapse in 2021, lawmakers imposed new building safety rules requiring regular inspections and fully funded reserves for aging condos.

While the reforms addressed long-overdue safety concerns, they have also driven up costs for condo owners and associations. Monthly fees have spiked, especially in older buildings needing major repairs. That makes new construction even more attractive to international buyers while pushing local middle-class families further out of the market.

At the same time, limited construction since the 2008 crash, labor shortages, and soaring material costs have left supply lagging far behind demand. Building new often costs more than buying existing stock, leaving little incentive for developers to focus on affordable housing. Instead, high-end condos and luxury rentals dominate new development pipelines.

Political Choices: Tax Cuts Over Targeted Relief

If international demand and regulatory pressures weren’t enough, political decision-making at the state and local level has compounded Florida’s housing affordability crisis.

Take Jacksonville as an example. Mayor Donna Deegan proposed over $7 million in targeted affordable housing programs, including downpayment assistance, eviction diversion, and an affordable housing development fund. But City Council gutted the funding, instead approving a $13.4 million property tax cut that saves the average homeowner just over $1 per month.

Council Finance Chair Raul Arias defended the cuts by arguing that small programs only benefit “a lucky few.” Critics counter that those cuts gutted meaningful solutions while doing virtually nothing to address affordability for most residents.

And while critics of Deegan’s housing agenda posture about fiscal responsibility, some of them hardly model it in their own affairs. Councilman Rory Diamond, for example, had no problem taking hundreds of thousands of dollars in pay per year for no hours worked as “former CEO” of K9s for Warriors, according to the nonprofit’s 2023 tax filings. That’s an easy lifestyle from which to lecture working families about “living within their means.”

This mirrors broader statewide trends. Florida politicians often tout property tax cuts and development incentives, but they rarely support large-scale investments in affordable housing or workforce housing development. Other states, like Utah and Rhode Island, have created innovative financing tools or lease-to-own programs, but Florida remains reluctant to follow suit.

The Math No Longer Works

The consequences are stark. According to the Harvard Joint Center for Housing Studies, the annual income needed to afford a median-priced home in the U.S. jumped to $126,670 in 2024 — a 60% increase in just three years. In Florida, property tax bills have surged nearly 50% since 2019, further straining homeowners.

Meanwhile, U.S. median household income rose just 1.3% over that period, leaving ordinary families behind. The median age of first-time buyers has risen to 38, and the share of first-time buyers has fallen to record lows. In most Florida cities, renting is now hundreds of dollars cheaper than owning.

Conclusion: An Affordability Crisis by Design

Florida’s housing crisis isn’t just the product of market forces — it’s the result of deliberate policy choices. International investors are welcomed, regulations push development toward high-end condos, and local leaders prioritize tax cuts over housing programs.

The outcome is a housing market increasingly detached from the needs of Floridians. Without a significant shift in political will — toward building, financing, and protecting affordable housing — the state risks cementing a two-tier system where real estate serves global wealth rather than local families.

For now, Miami remains the “Capital of Latin America,” Florida remains the capital of foreign homebuying, and ordinary Floridians are left wondering if they’ll ever afford a piece of the Sunshine State dream.