Florida’s Housing Market Softens as Climate-Related Costs Mount

Florida real estate prices are in decline again — and this time, real estate experts say, the costs of living with climate change may deepen the down phase of the usual boom-and-bust cycle. Sky-high insurance rates and condo fees, stemming in part from extreme weather, are weighing more heavily against the benefits of year-round sunshine and zero income tax, complicating an already tough situation with borrowing costs.

The climate cost burden on state homeowners isn’t likely to ease soon. “This is a non-cyclical phenomenon,” said Jesse Keenan, a real estate professor at Tulane University who focuses on climate adaptation. “This is resetting the ...