Florida Housing Market 2025-2026: What Investors Need to Know

The Florida real estate market continues to attract foreign investors, particularly from Latin America, who are looking to protect their wealth, diversify their assets, and benefit from U.S. tax structures. With its favorable business climate, strong population growth, and no state income tax, Florida remains a strategic entry point for international investment in the United States.

As we move into 2025 and beyond, understanding the housing market trends and key tax considerations becomes essential for Latin American investors, especially those using U.S.-based LLCs to structure their holdings.

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Florida Housing Market Overview: Still a Hotspot for Investment

The Florida housing market has shown resilience and adaptability through fluctuating interest rates and global economic shifts. As of early 2025, home values across the state continue to rise steadily, though at a more moderate pace compared to the peak surges of 2021–2022.

According to Zillow and Redfin data, the Florida median home price is approximately $409,000, with variations across major metropolitan areas:

Inventory levels have improved slightly, yet demand remains strong, driven by continued migration from other U.S. states, retirees, and international buyers. New construction projects are helping meet demand, especially in suburban and up-and-coming areas.

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Florida Real Estate Trends for 2025–2026

Several key trends are shaping the Florida housing market through 2026:

• Stable Price Growth: While price appreciation has cooled from pandemic-era spikes, Florida real estate is projected to grow 3–5% annually through 2026.

• Rental Demand Remains High: With high mortgage rates discouraging some buyers, the rental market is thriving, particularly in cities like Miami and Tampa.

• Continued Foreign Interest: Latin American investors, especially from countries like Argentina, Colombia, and Mexico, are maintaining strong interest in Florida due to economic instability at home and favorable U.S. legal protections.

• Shift Toward Suburban and Coastal Towns: Areas like Cape Coral, Port St. Lucie, and Sarasota are seeing increased activity due to affordability and lifestyle appeal.

Why Many Investors Use LLCs to Buy Real Estate in the U.S.

For foreign investors, purchasing U.S. property through a Limited Liability Company (LLC) offers multiple advantages:

• Asset Protection: An LLC helps separate personal and business assets.

• Estate Planning Benefits: In the event of the owner's death, assets owned by the LLC may avoid U.S. probate procedures.

• Tax Flexibility: LLCs can be structured for potential U.S. tax advantages, especially when properly coordinated with international tax advisors.

• Privacy: Ownership through an LLC can shield personal identity in public real estate records.

While an LLC is not mandatory to purchase real estate, it is a widely used tool by nonresident investors looking to operate professionally and reduce risk.

Tax Benefits and Considerations for Foreign Investors in Florida

Investing in U.S. real estate can offer strategic tax planning opportunities. For Latin American investors, these may include:

• No State Income Tax: Florida does not impose state income tax, making it more attractive than states like California or New York.

• Rental Income Structure: Income from rentals is generally taxed at the federal level. However, proper LLC structuring and elections (e.g., choosing to be taxed as a corporation) may help reduce the overall burden.

• Capital Gains Treatment: Gains from the sale of U.S. real estate are typically subject to U.S. taxation, but investors may benefit from long-term capital gains rates if held for more than one year.

• FIRPTA Compliance: Foreign investors must navigate the Foreign Investment in Real Property Tax Act (FIRPTA), which imposes withholding requirements. Working with experienced advisors can help reduce unnecessary tax exposure.

At H&CO, we guide our clients through these complexities to optimize tax outcomes while remaining compliant.

Is It a Good Time to Invest in Florida Real Estate?

Despite rising interest rates and economic uncertainty in some regions, Florida remains one of the most resilient and strategic markets for real estate investment in the U.S. For Latin American investors looking to:

• Protect their assets from domestic economic volatility,

• Gain access to dollar-denominated investments,

• Reduce tax exposure legally through entity structuring.

• Or enter the U.S. market via real estate,

...Florida offers a balanced mix of opportunity, security, and long-term growth.

The combination of strong rental yields, steady appreciation, and favorable tax conditions makes it an ideal environment for both first-time and seasoned international investors.

At H&CO, we help international investors navigate U.S. real estate acquisitions, from LLC formation to tax planning and compliance. If you're considering expanding your portfolio in Florida, our team is ready to guide you every step of the way.

Contact us to explore how we can help optimize your U.S. investment strategy.