If you are thinking about moving to Florida, one of the key questions you have is whether it will be an affordable place to own a home. Let’s take a look at the factors that impact the affordability of owning a home in this state, including housing prices, property taxes, homeowners’ insurance rates, and more.
Florida Home Prices
According to Zillow, the average home value in Florida as of the time of this writing is $375,470. That is just a little more expensive than the nationwide average of $368,697. So, home prices in this state are roughly comparable to what they are in many other locations throughout the US.
There has been an increase in housing inventory since the start of 2025, especially in Cape Coral, North Port-Sarasota, Fort Lauderdale, Tampa and Orlando. Those may be good areas to direct your home search if you are able to move anywhere in the state.
Property Taxes in FL
The effective property tax rate in Florida at the time of this writing is 0.76%. That is the 28th highest property tax rate in the country, making property taxes in FL a little lower than they are in over half of the states.
Homeowners’ Insurance in FL
While home prices and property taxes in Florida tend to be reasonable, one area where you may end up paying more money is for homeowners’ insurance.
The reason homeowners’ insurance tends to cost more in FL is due to the state’s weather. Hurricanes and flooding are frequent problems in Florida. Both can do a great deal of damage to a home and property. That means that properties in this state are riskier to insure, which is why insurance rates are higher.
Additionally, common exclusions include flood damage, damage from windstorms, and mold and water damage. These, however, are common issues in Florida. That means that you may need to purchase additional coverage on top of your regular homeowner’s insurance. Learn more about homeowner’s insurance in FL.
FL Home Maintenance and Repair Costs
Hopefully, if there is significant damage to your home, your insurance will cover most or all of the repair costs. If something falls outside of your coverage, however, or if you want to avoid making a claim so your rates do not go up, you may need to handle repair costs yourself. Your insurance also will not cover the costs of routine maintenance.
Because of the high humidity, as well as the frequent inclement weather conditions in this state, it can be more expensive to maintain and repair a home in Florida than it is in some other states.
Try to use methods like ventilation to prevent the build-up of humidity, moisture and mold in your home. Take steps to reinforce your home against heavy wind, and make sure your landscaping directs water away from your home, not toward it.
Income Taxes in FL
One economic benefit of living in FL is that there is no state income tax. You’ll still need to pay federal income tax, as well as sales taxes. In other states, state income taxes can chew through hundreds of dollars a month. In FL, you can use that money to pay for other expenses. And even more good news is that the sales taxes are not even as high as they are in some other states.
Other Costs of Living in FL
Here is what you can expect from the other costs of living in FL:
- Healthcare tends to cost a little less in FL than it does in some other states.
- The cost of gas in FL is usually lower than it is in other states.
- Utilities in FL can be slightly higher than they are elsewhere.
- Average food costs can be a tad higher in FL than in other states.
As you can see, general costs of living even out. Some expenses in FL are higher, but others are lower. So, things stay pretty balanced, especially if you are good at preparing cost-effective meals. People who do a lot of driving or who have ongoing healthcare expenses may also benefit from living in FL.
Buy a Home in Florida
Owning a home in Florida has its pros and cons with respect to affordability. Home prices and property taxes tend to be reasonable. You also get a break with income taxes. Homeowner’s insurance and home repairs and maintenance can add to your costs, however.
Buying a home in FL with a suitable mortgage will help you keep homeownership as affordable as possible. Competitive rates can help to offset higher insurance costs.
We are based in Cooper City, and can help you buy your first or next home anywhere in Florida. To get started, please give us a call at 954-840-8811 to schedule your consultation.
