Q3 2025 Market Report: Hurricane Season & Housing Stability in Northeast Florida
By Inna Moskalyk
Oct 7, 2025
Tags:Market Reports
The third quarter of 2025 brought hurricane season vigilance alongside continued market stability. After years of dramatic swings, the Northeast Florida real estate market showed signs of maturing into a healthier, more balanced state. Here's your Q3 2025 market analysis.
Q3 2025 Market Statistics
The market demonstrated the stability that buyers and sellers had been seeking:
- Price Growth – Home value appreciation flattening-neither significant gains nor concerning declines
- Rental Market – Positive rent growth returning mid-year, with average effective rent projected at $1,504 by Q4
- Multifamily – Occupancy rates around 90.5%-healthy for the apartment sector
- Sales Trajectory – Existing home sales tracking toward 6% annual increase over 2024
Rates Settling into New Normal
According to Fannie Mae economic forecasts, 30-year mortgage rates were expected to reach 6.3% by year-end, with 2026 projections in the 6.1-6.2% range.
The mid-6% environment became accepted as the new normal, with buyers no longer holding out for sub-5% rates that seem increasingly unlikely in the near term.
Hurricane Preparedness: A Community Priority
After the 2024 season's reminders of Florida's vulnerability, Q3 2025 saw heightened focus on storm readiness:
- Insurance Costs – Stabilizing but remaining elevated compared to pre-2022 levels
- New Construction Premium – Modern homes with hurricane-resistant features commanding market premiums
- Buyer Due Diligence – Flood zone verification and insurance quoting now standard early in home search
The St. Johns County School District maintained its top-tier rankings as the new school year began, continuing to be a major draw for relocating families.
Economic Strength Supports Housing
Northeast Florida's economic fundamentals remained robust:
- Unemployment – Approximately 2.8%-a tight labor market supporting household formation
- Job Growth – Nonfarm payroll increasing at roughly 2.3% annually
- Relocation Appeal – Florida continued attracting out-of-state buyers seeking relative affordability
The Bureau of Labor Statistics Florida data provided detailed employment trends supporting the housing market.
Fall Events Showcase Community Life
Q3 brought beloved community events:
- Beaches Oktoberfest – Jacksonville Beach tradition celebrating community
- WasabiCon – Pop culture convention drawing visitors to Jacksonville
- Agricultural Fair – St. Johns County tradition highlighting local agriculture
- Development Progress – Silverleaf, Rivertown, and Nocatee continued expanding with new phases
Fall Market Dynamics
For Buyers:
Fall traditionally brings motivated sellers who want to close before year-end. Combined with still-favorable inventory levels, Q3 2025 continued rewarding patient, prepared buyers.
Thinking about investment properties? Read our analysis: Top 5 Neighborhoods to Invest in Right Now.
For Sellers:
With more buyers accepting the current rate environment and inventory growth slowing, properly priced homes found their audience. The key remained realistic expectations and professional marketing.
Looking Ahead to Q4
The year-end period approached with the market showing stability after three years of dramatic transitions. The 2023 seller's market had given way to 2024's transition and 2025's buyer-friendly conditions. What would 2026 bring?
Fall Into Your New Home
Conditions remain favorable for thoughtful buyers and realistic sellers. Contact me today to discuss how to make the most of today's market.