With a housing boom usually comes crashes. These three markets I believe are inflated by hype: Miami, Orlando & Tampa. History has proven the Florida market usually gets hit very hard when it comes to a recession or housing correction. According to TIME, Florida was the number one state affected by the housing market crash in 2008.
These markets would usually get hit in that order due to the crazy prices they usually reach in booms; quickly loosing hype because they can't be supported by local workforce. This usually happens when builders can't afford to build due to no funds, little demand on housing, employment opportunities dwindle, the amount of migrants entering the country making jobs more competitive. All things that lead to a housing correction/recession.
Florida is sold on a hype that all is sunny in the sunshine state. However Florida's employment opportunities are not as competitive as the northern states, most of Florida's money comes from northern families with either ties back in the north or just having Florida as a vacation home destination, Florida's economy is driven by tourism and in tough times that is a market severely hit, its weather may attract but sometimes it's not enough or more than enough to get others to move elsewhere or back where they moved from, & lastly the migrant issue is raising concerns all over and Florida has always been a target for it.
According to Fortune, homes in Miami are overvalued by 35%. These numbers sound very much like the 2008 numbers. Housing corrections signify a lack of employment or competitive salaries and a demand loss in housing. Housing then must correct itself to meet the demand of consumers and at times this could lead to foreclosures that lead to more inventory and later a buyer's market.
My sentiment and a fact; but heck what do I know?! I only lived a recession in 2008 in Florida and saw how it unfolded first hand....
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