Florida's Troubled Home Markets: 10 Cities to Avoid

Photo byJudy Baxter

Florida's real estate market has long been a magnet for buyers seeking affordable homes in a desirable location. However, recent market forces, including rising mortgage rates and increasing home prices, have created challenges for specific cities in the state.

This article aims to identify Florida cities facing these challenges, providing valuable insights for potential homebuyers looking to navigate the housing market in 2024. The analysis looks into critical factors identified by GOBankingRates, such as average home values, average income, and livability index, to determine which cities buyers should avoid when considering a home purchase in Florida. By arming yourself with this knowledge, you can make informed decisions and feel empowered in your homebuying journey.

Methodology

GOBankingRates conducted a rigorous analysis to identify problematic housing markets in Florida. This analysis considered vital factors such as average home values, income, and livability index. The study compared the average single-family home values during December 2022 and December 2023, sourced from the Zillow Home Value Index.

Additionally, average income data was sourced from the American Community Survey, with the livability index documented by AreaVibes. Cities with an average house value below the national average and a livability index below 75 have challenging housing markets. This comprehensive approach provides a detailed understanding of the Florida housing market landscape, giving potential homebuyers confidence in the information provided.

Madison, Florida

In December 2022, the average home value in Madison, Florida, stood at $178,443. However, it had slightly decreased to $176,639 by December 2023. The average income in Madison maintains an average income of $21,111.

Livability Index

Madison has a livability index of 65, indicating a moderately favorable environment for residents.

Year-Over-Year Change

The year-over-year change in home value was -$1,804, suggesting a slight decline in the housing market.

Market Trend Analysis

Despite the slight decline in home value, Madison offers a relatively livable environment. However, potential homebuyers should consider the above market trends when evaluating the housing market in Madison for investment or living purposes.

Micco, Florida

In Micco, Florida, the average home value declined from $259,122 in December 2022 to $243,192 in December 2023. The average income is $34,982, and the livability index is 65.

Housing Market Challenges

Micco faces challenges in its housing market, as evidenced by the significant year-over-year decrease in average home value. This decline and the relatively high average income suggest potential affordability issues for residents. Prospective homebuyers should carefully consider these factors when evaluating the housing market in Micco.

Laurel Hill, Florida

In Laurel Hill, Florida, the average home value slightly decreased from $179,366 in December 2022 to $177,566 in December 2023. The average income is $28,747, and the livability index is 60.

Laurel Hill's Housing Market Conditions

The housing market in Laurel Hill reflects a modest decline in average home value over the year, combined with the average income level, indicating a relatively stable market. However, the livability index suggests some factors may affect the area's overall quality of life. Prospective homebuyers should consider these aspects when evaluating Laurel Hill's housing market.

Palatka, Florida

Palatka, Florida, saw a minimal decrease in average home value from $191,025 in December 2022 to $190,559 in December 2023. The average income in Palatka is $19,694, and the livability index is 55.

Palatka's Housing Market Challenges

Palatka's housing market has stagnant home values and relatively low average income. This combination suggests a challenging market for both buyers and sellers. The low livability index further indicates potential issues with the overall quality of life in Palatka, which could impact the area's attractiveness for homebuyers.

Coleman, Florida

Coleman, Florida, experienced a notable decrease in average home value from $180,642 in December 2022 to $175,221 in December 2023. The average income in Coleman is $20,653, and the livability index is 61.

Coleman's Housing Market Conditions

Coleman's housing market shows a significant decline in average home value over the year, which may indicate challenges for homeowners and sellers. The average income level suggests affordability may be a concern for residents. However, the livability index is slightly higher than other cities on this list, indicating a relatively better quality of life in Coleman than in other Florida cities with challenging housing markets.

Westville, Florida

Westville, Florida, experienced a minor decrease in average home value from $187,528 in December 2022 to $185,859 in December 2023. The average income in Westville is $30,200, with a livability index of 51.

Westville's Housing Market Challenges

Westville's housing market reflects a slight decline in average home value, which could impact homeowners and sellers. The average income level is relatively higher than other cities, suggesting better affordability for residents. However, the low livability index indicates potential issues with Westville's overall quality of life, which could influence homebuyers' decisions.

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Homeland, Florida

Homeland, Florida, saw its average home value decrease from $219,884 in December 2022 to $210,353 in December 2023. The average income in Homeland is $31,005, and its livability index is 58.

Homeland's Housing Market Conditions

Homeland's housing market experienced a noticeable decline in average home value over the year, which may pose challenges for homeowners and sellers. The average income level suggests relatively better affordability than other cities. However, the livability index indicates potential issues with the overall quality of life in Homeland, which could impact the area's desirability for homebuyers.

Poinciana, Florida

The average home value in Poinciana, Florida, decreased from $310,752 in December 2022 to $303,975 in December 2023. The average income is $28,091, and the livability index is 54.

Poinciana's Housing Market Challenges

Poinciana's housing market shows a decrease in average home value, which may present challenges for homeowners and sellers. The average income level suggests affordability may be a concern for residents. The low livability index also indicates potential issues with Poinciana's overall quality of life, which could impact the area's attractiveness for homebuyers.

Campbellton, Florida

Campbellton, Florida, experienced a decrease in average home value from $128,770 in December 2022 to $124,798 in December 2023. The average income in Campbellton is $19,960, and the livability index is 54.

Campbellton's Housing Market Conditions

Campbellton's housing market reflects a decline in average home value, which may pose challenges for homeowners and sellers. The average income level suggests affordability may be a concern for residents. The low livability index indicates potential issues with Campbellton's overall quality of life, which could impact the area's attractiveness for homebuyers.

Paxton, Florida

The average home value in Paxton, Florida, decreased from $150,853 in December 2022 to $144,233 in December 2023. The average income in Paxton is $25,383, and the livability index is 54.

Paxton's Housing Market Challenges

Paxton's housing market shows a decline in average home value, which may present challenges for homeowners and sellers. The average income level suggests affordability may be a concern for residents. The low livability index also indicates potential issues with Paxton's overall quality of life, which could impact the area's desirability for homebuyers.

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Final Word

The analysis of Florida's housing market highlights several cities that present challenges for potential homebuyers.

Cities like Madison, Micco, and Laurel Hill exhibit stagnant or declining home values, relatively low average incomes, and livability indices. Areas such as Palatka, Coleman, and Westville also face similar issues, indicating a broader trend of affordability and quality of life concerns in these regions. Homeland, Poinciana, Campbellton, and Paxton round out the list, each showing varying degrees of difficulty in their housing markets.

For those considering buying a home in Florida, it's essential to do thorough research and consider all factors, including average home values, income levels, and livability indices. While these cities may present challenges, they may also offer opportunities for buyers looking for more affordable options. Navigating Florida's housing market requires careful consideration and a clear understanding of the local conditions, making further research and consultation with real estate professionals essential.

This article is for informational purposes only. It should not be considered financial, real estate, or legal advice. The market fluctuates; therefore, not all information will remain the same. Consult a financial or real estate attorney before making significant real estate decisions.