by Mike Colpitts 
Florida’s real estate markets have experienced a century of booms and busts, shaping the state’s economy and population growth. From the early land booms in the 1920s to the Great Recession of 2008, Florida has been a dynamic yet volatile market. The history of Florida real estate provides an in-depth look at major events, economic trends, and regulatory changes that have influenced home sales, development and protected consumers. It also shines a light on new opportunities.
Florida’s real estate history is cyclical in nature. Despite its downturns, Florida’s desirability as the Sunshine State to live, work, retire and recreate drives its real estate markets forward to experience unprecedented growth.
The 1920s Florida Land Boom
One of the first major real estate booms in Florida occurred in the early 1920s, driven by rapid population growth, speculation, and aggressive marketing campaigns. Developers and investors from across the country flooded into the state, buying up land and selling it at ever-increasing prices. Cities like Miami, Tampa, Bradenton and St. Petersburg saw huge expansions.
However, by the mid-1920s, a century ago markets became overheated. Rampant speculation, fraudulent land sales, and logistical bottlenecks in transporting materials needed to build homes and commercial dwellings slowed the market. A series of hurricanes in 1926 and 1928 devastated parts of Florida, damaging investor confidence. By 1929, the Florida real estate bubble had fully collapsed, and the Great Depression exacerbated the downturn, leading to years of economic stagnation.
Post-World War II Booms and Busts
Following World War II, Florida experienced another real estate boom as returning veterans and retirees sought warmer climates and affordable housing. The introduction of air conditioning, improvements in infrastructure, and new housing developments built for Veteran buyers helped drive growth. The century of booms and busts in Miami, Orlando, and Jacksonville transformed the population centers.
By and large South-west Florida stayed out of the surging prices as a smaller more remote part of the state. Fort Myers had not grown enough with new housing developments to reach the prices other areas of the state had seen.
The 1950s and 1960s saw a surge in planned communities, including Cape Coral, which catered to middle-class families. Florida’s tourism industry also played a significant role in real estate growth, with Walt Disney’s decision to develop Disney World in Orlando in the 1970s fueling a new wave of development in Central Florida.
The 1980s Savings and Loan Crisis
Florida real estate continued to grow in the 1970s and early 1980s, but the latter part of the decade saw trouble due to the Savings and Loan (S&L) Crisis. 
Many financial institutions engaged in risky lending practices, fueling speculation and overbuilding. When the federal government stepped in to regulate and shut down failing institutions, the real estate market suffered a sharp downturn. The real estate bust lasted more than a decade.
During the late 1980s and early 1990s, Florida experienced a mild real estate recession. Home prices stagnated, and foreclosures increased. However, the state’s growing population, fueled by retirees and immigrants attracted to warmer weather and sunshine helped stabilize the market faster than in other parts of the country.
Century of Booms and Busts in Florida Real Estate
The early 2000s saw another explosive real estate boom in Florida, driven by record low-mortgage rates, easy mortgage access, and speculative investment. Property values soared, and new developments sprouted up across the state. Cities like Miami, Tampa, and Fort Lauderdale experienced rapid price increases, with condos and luxury homes becoming hot commodities for domestic and international buyers.
However, by 2006 signs of trouble emerged. Speculative flipping led to unsustainable price growth, and mortgage lending practices became increasingly risky. The subprime mortgage crisis of 2007-2008 triggered a nationwide housing crash, and Florida was one of the hardest-hit states. Foreclosures skyrocketed, property values plummeted, and new developments were abandoned. The market remained depressed for years, with Florida’s economy struggling to recover from job losses and declining tourism revenue.
The Post-Recession Recovery and New Trends
Starting around 2012, Florida’s real estate market began to recover, helped by low interest rates, 
foreign investment, and a growing economy. Cities saw a resurgence in home prices, and new construction projects resumed. Tourism and the influx of retirees continued to drive demand for housing.
The COVID-19 pandemic in 2020 initially caused uncertainty in the market, but Florida quickly became a hotspot for new homebuyers writing a new chapter in Florida’s century of booms and busts. Home buyers seeking lower taxes and warmer weather were attracted to the state when they were able to work for their companies remotely. The surge in demand, coupled with supply chain issues, led to a dramatic increase in home prices in 2021 and 2022.
However, the western side of the state did not experience the long term effects of the inflationary real estate boom for as long as the east coast, limiting higher pricing. As a result, Fort Myers and some other surrounding communities are witnessing home sales pick up at lower price levels sooner than the east coast.