The Cost of Living and Investment in Florida in 2024

As we settle into 2025, many residents and future transplants are looking closer at the cost of living in Florida. From groceries to housing, the monthly cost of essentials has risen significantly across the Sunshine State. Whether you’re planning on moving to Florida or are already calling a Florida city home, understanding these shifting financial dynamics is essential—not only to avoid breaking the bank but also to make smarter real estate investment decisions.

How a migrant navigates the cost of living

However, buying property in an area is only one side of the story; how about living there? As an intending migrant or vacationist, it is crucial that you consider the lifestyle costs in a location before plunging yourself into it. Below is a typical way to put it into context:

How much will it cost on average to live in the town? According to data prevalent among researchers, it will cost an individual a minimum of $44,000 per annum to survive in Florida. If you want to make ends meet, you can budget between $37,000 and nothing less (you will be in great discomfort if you go less than that). This figure does not include the cost of the property or the purchase of premises, of course. It is average for utility bills, feeding, transportation, and other minor expenses. You can add at least 2/3rd of that amount per person for a rough estimate for larger families. You may want to compare this amount with your current earnings to know if you can survive in the State.
How much will it cost to be comfortable and live a decent life? Now, this is where the trick lies. It is not enough to merely survive in a State; regardless of how prudent you are at spending, you will deserve some special treats now and then; the question is, will you be able to afford those? For an idea, you can check the average cost of properties, clothing, restaurant meals (as opposed to homemade meals), the cost of hangouts and special events, etc. Although Florida is not one of the most expensive States in the United States, it is not the cheapest either, so you should consider those in your budget too.

Investing in a penthouse

One of the best investment opportunities in Florida can be found in the form of penthouses located in the best skyscrapers in the area. These penthouses offer stunning views of the city and provide the ultimate luxury living. The penthouses are designed to provide residents with the highest level of comfort and convenience, with access to world-class amenities such as swimming pools, fitness centers, and conference rooms.

One of the advantages of investing in a penthouse is its resale value. As a result of the increasing demand for property in Florida, many penthouses are being sold at amazing prices. This is great news for investors who want to buy low and sell high. With the opportunity to buy a penthouse at a great price, investors can expect to see a significant return on their investment.

Consumer Price Index (CPI)

The CPI is a measure of the average change in prices paid by urban consumers for a basket of goods and services over time. It’s used as an indicator of inflation and to adjust wages, benefits, and other payments for changes in purchasing power.

Index for Urban Wage Earners and Clerical Workers CPI W

This specific CPI measures changes in prices paid by urban wage earners and clerical workers, which are often used to calculate COLA adjustments for Social Security benefits.

Florida’s dynamic economic landscape presents unique considerations for residents grappling with the cost-of-living increase. From bustling urban centers like Miami and Orlando to picturesque coastal communities, Floridians face varying housing costs, transportation challenges, and healthcare expenses. Exploring how these factors intersect with statewide trends provides a comprehensive understanding of the cost-of-living dynamics in Florida.

Let’s go through the list of significant advantages

1. High appreciation rates

The Florida real estate market has had a history of high appreciation rates, with some areas seeing double-digit appreciation rates year after year. This means that if you invest in a property in Florida, you are likely to see significant growth in your investment over time.

2. A Thriving rental market

Florida is a popular destination for both tourists and those looking to relocate, making it an excellent area to invest in rental properties. Many areas in Florida have a high demand for rental properties, meaning that it is possible to charge competitive rental rates, resulting in a steady stream of rental income.

3. A booming economy

Florida is home to numerous thriving industries, including tourism, agriculture, and aerospace. This means that there is a constant influx of people looking for job opportunities, which can drive up demand for housing. A robust economy also typically results in higher wages, which can lead to more people being able to afford to buy or rent a property.

4. A great environment for snowbirds

Florida’s warm climate makes it a popular destination for “snowbirds,” or those looking to escape cold winter weather elsewhere in the United States. As a result, many snowbirds purchase or rent properties in Florida, making it an excellent area to invest in vacation homes.

5. Low taxes

Florida is known for having one of the most favorable tax structures in the United States. Property taxes in Florida are generally low compared to other states, and there is no state income tax, making it an attractive option for investors looking to maximize their returns.

The median price of owning a home

The median price of a Florida home is about $400,000. Please take note that this is not an average or minimum. There are many municipalities in Florida where the cost of purchasing a home is far lower than $200,000, making affordable housing available in certain pockets of the state. Overall, it will depend on the parts of Florida you want and the type of property you have in mind. A thriving economy also means that prices for property in Florida are rising. This is great news for investors who have already made an investment in the state, as they can expect to see the value of their property increase over time. However, it is also important for new investors to act quickly if they want to take advantage of the current market conditions.

Cost of renting a home

Not everyone is ready—or willing—to buy. Florida’s rental market accommodates a wide range of budgets. For example, some single persons in the transient stages of their lives may not want to own a home, and sometimes even married couples who work transfer jobs may not want to tie down money in buying a home. Real estate is a long-term business requiring pruning, patience, and many investments. It would take some dedication to venture into the terrain and remain there. This and many more are the reasons why many residents of Florida do not own their homes.

You can find modest rentals for $500 a month or luxury units exceeding $4,000. The state average rental cost hovers around $2,500 monthly, which is higher than the national average. This flexibility allows both short-term renters and long-term residents to find accommodations without breaking the bank.

Cost of food/feeding in Florida

As housing is indispensably important, so also is food. There has never been a time when man ceased to eat regardless of the climes or the social situation. It is true that as long as we live, we must eat to maintain strength and vitality. It is critical to obtain all necessary nutrients for the body, and equally essential for living. So, as long as you are a human living in Florida, you must eat. By estimates, one adult will need about $3,500 for feeding per annum. It is important not to minimize this beyond that amount for greater comfort. A family of four will need about $10,000 to feed and live well in Florida.

Finally, be aware that transportation will cost you more than food in Florida, as the estimated amount for an individual adult is about $5,400.

Bottom line

Florida in 2025 remains a land of opportunity for both residents and real estate investors. Despite rising home prices and insurance costs, the Sunshine State continues to attract newcomers thanks to its favorable tax structure, dynamic job market, and sunny lifestyle. Understanding the true monthly cost of living and how Florida’s cost of living compares to your current location is key before making the leap.

With careful budgeting, informed choices, and an eye on long-term growth, it’s entirely possible to enjoy Florida living without breaking the bank. Whether you’re interested in affordable housing or luxury investments, the state offers a wide spectrum of options. And for those eyeing real estate, the mix of Florida homes, rental opportunities, and rising demand creates a prime investment landscape.

A guide on the cost of living and investment in Florida in 2025 was last modified: September 1st, 2025 by Billy Guteng

Written by Billy Guteng. April 14, 2023

Billy is a content writer for Kukun. He was born in France, and has lived in multiple cities around the world ever since. He loves art, design and architecture as well as construction and real estate.