Why Are Homes Still So Expensive in Florida?

Florida’s cost of living has surged in recent years—especially when it comes to housing. See what’s driving the squeeze, and what it means for today’s buyers and renters.

Key Takeaways:

• Home prices vary significantly across Florida.
• There is an acute shortage of affordable rental housing for certain income groups.
• Florida’s rapid population increase has intensified the demand for housing.
• Florida home prices are expensive, but are falling in many areas.

Buying or renting a home has always been and will forever be a significant financial step. But today, the landscape for homebuyers has changed, no matter where you live in the US.

Here in Florida, buyers and renters are struggling to afford somewhere to live, driven in part by universal housing price factors combined with some state-specific issues.

Here, we’ll explore the main components contributing to Florida’s high housing costs, if there’s any optimism to be had, and how things may look in the future.

Regional Price Variations

First, let’s take a comparative look at Florida’s home prices, starting with a national perspective. 

The median home sale price in the US was $416,900 in Q1 2025. The average rent nationally was $1,576 for the same period.

Zillow data sets the median sales price of a Florida home at $375,000 in Q1 2025, while the average rent for a one-bedroom home in Florida was $1,693 per month. RedFin placed the median sales price of a home even higher at $415,000.

Those are base figures, however, and will vary depending on where in Florida a property is sold or rented. For example, coastal communities typically cost more to live in, particularly in Florida, which has a subtropical or tropical climate (again, dependent on location within the state).

With more desirable real estate comes higher property taxes, which also drive up home prices and rental rates. Rural homes in Florida are generally cheaper than coastal or urban ones. In fact, they rank among some of the most affordable places to live in 2025.

An Affordable Housing Shortage and the Impact of Population Growth

Sudden and rapid population growth during the COVID-19 pandemic contributed significantly to Florida’s current housing affordability crisis.

Almost 2.7 million people moved to Florida between 2021 and 2023, rapidly populating the state and sparking a housing boom. Ultimately, this drove up the median price for all property types in Florida as overwhelming demand outpaced supply.

Moves to Florida have since slowed. Fewer higher-income home buyers are present in the state, making Florida’s various housing markets more dependent on the incomes of their local populations.

With Florida’s minimum wage currently at $13.00 an hour, many people are struggling to afford rent or buy a home, leaving renters and buyers unsure how to move forward, and landlords and real estate agents facing more vacant properties.

A report from the University of Florida’s Shimberg Center for Housing Studies revealed an acute shortage of affordable rental housing for those earning less than 80% of their area’s median income (AMI).

The report also revealed that around 883,863 renters whose income is less than 60% of their AMI are paying over 40% of their income on rent.

Those with enough money to buy a home may be wondering if it’s better to just build their own than wait for the market to become more affordable. Build or buy is a classic quandary, where it’s always best to take the time to properly consider the pros and cons.

There are certainly serious challenges faced by low- to moderate-income households in securing affordable housing, but is there optimism to be found anywhere?

Florida Housing Prices are Expensive, but Falling

There is something of a silver lining here for buyers and renters, believe it or not!

Generally, higher prices all around and a population widely unable to afford them have seen the market adjust to stay afloat, with prices decreasing in some areas and for some property types.

Housing data expert Lance Lambert highlighted that condo prices are falling in 92% of Florida’s markets, while single-family home prices are down 66%. Prices have even dipped in Florida’s three biggest metro areas of Miami, Tampa, and Orlando.

Florida’s vulnerability to severe weather like hurricanes and tropical storms has also had a devaluing effect on property values, particularly since 2022’s Hurricane Ian, which hit Southwest Florida hard.

This has resulted in reduced buyer interest in these areas and tougher premium prices from insurers, two factors that have lowered prices in that region.

In other regions, active property listings are exceeding pre-pandemic levels, which puts a little more pressure on sellers than buyers.

Overall, it’s not the market buyers and renters are hoping for, but at least there’s some positivity that will hopefully continue to favor those looking for somewhere to live in Florida.

Is This a Bad Picture for Florida Construction?

The fact that Florida has more homes than are currently being occupied may imply a real slowdown for new construction. 

In fact, new residential permits for February 2025 totaled over $2.7 billion in value across Florida’s five key regions.

Demand is still there, which means residential contractors still have the chance to compete for new bids. 

Those contractors with the biggest chances of success will be prepared for today’s difficult financing climate, while making sure they’re ticking every box on the ideal residential construction checklist.

Get More Help from RPC

RPC General Contractors is a full-service construction company that handles every aspect of construction, from first designs and project management to documentation and final inspection.

We’ve lent our expertise to many residential construction projects, both single-family and multi-residential, and we always prioritize compliance, cooperation, and communication. 

Connect with us for a free consultation, and let’s get your next project started!