The once-unshakable momentum in America’s Sun Belt housing markets is showing signs of fatigue.

According to Realtor.com’s June 2025 housing report, homes are sitting on the market longer in 39 of the 50 largest U.S. metros. This isn’t just a Sun Belt story — it’s a national one. But some of the strongest slowdowns are coming from the very regions that dominated headlines over the past three years.

Across every U.S. region — South, West, Midwest, and Northeast — homes are taking longer to sell. The South and West in particular are seeing the largest increases in “days on market,” and that’s worth paying attention to if you’re investing, building, or underwriting deals in those regions.

🔍 Time on Market by Region (YoY Increase)

South: +8 days West: +7 days Northeast: +3 days Midwest: +1 day

That last number — just one day in the Midwest — is telling. Markets like Indianapolis, Kansas City, and Cleveland continue to benefit from affordability, strong job growth, and a more rational relationship between incomes and home prices. In contrast, Sun Belt markets are starting to show cracks.

Where Are Homes Sitting the Longest?

These metros posted the sharpest year-over-year increases in time on the market:

Nashville, TN: +20 days Orlando, FL: +15 days Miami, FL: +15 days Tucson, AZ: +12 days

That two of the four are in Florida is no accident. Between post-Surfside condo regulations, rising insurance premiums, and growing climate risk, the Florida real estate playbook has changed. And that’s before you factor in the federal policy backdrop.

Immigration’s Market Impact

Political shifts matter too. Former President Trump’s immigration crackdown is being cited by South Florida agents as a key reason for the slowdown in foreign investment — particularly from Latin America and Canada, historically major sources of demand in Miami.

When international buyers retreat, inventory lingers. In Miami, that retreat is being compounded by mismatched seller expectations and buyers unwilling to chase prices set during the COVID-era frenzy.

Orlando: A Case Study in Mismatch

In Orlando, it’s not just about prices — it’s about product. As local broker Martin Orefice points out, inventory isn’t scarce, but it’s skewed toward large, expensive homes. Meanwhile, the buyer pool consists of first-time buyers working in hospitality and young professionals fresh out of UCF.

“Even retirees — who used to drive much of Orlando’s housing growth — are looking to downsize,” he says. “They’re not interested in 4-bedroom suburban sprawl.”

A Silver Lining for Buyers?

The market correction — if we want to call it that — is bringing much-needed discipline. And that’s not necessarily bad news. As ONE/Sotheby’s Jill Penman notes, we’re now separating serious sellers from those still anchored to unrealistic pricing.

“This isn’t a crash. It’s a clearing.”

The Realtor.com report echoes that theme. National inventory is rising, price reductions are becoming more common, and sellers are starting to come down from the clouds — but this isn’t 2008. It’s a normalization.

Where Prices Are Actually Falling

Nationally, the median list price held steady at $440,950 in June — essentially unchanged from May. But regionally, the West and South are cooling fastest:

West: -8% YoY South: -9% YoY

These are targeted pullbacks, not wholesale discounts. For developers, investors, and builders, it means navigating a more nuanced market — one where timing, product fit, and local knowledge matter more than ever.

Final Take

If you’re building or buying in Sun Belt markets, this is the time to stress-test your assumptions. Demand is still there, but it’s pickier. And the era of “list it, sell it in 24 hours” is over — at least for now.

This is a moment of recalibration. For savvy operators, that means opportunity.