Cost Of Living In Florida 2023 | Bankrate (2024)

FAQs

What is the average cost of living in Florida 2023? ›

Average Cost of Living in Florida: $50,689 per year.

Economists estimate that Floridians need to earn at least $15.60 per hour to enjoy a living wage and comfortable lifestyle. This is an average salary of $32,448 per year. These calculations are based on the expenses of a single adult, which increase as you add dependents like older relatives and children.

Overall, the Florida housing market is likely to remain strong in 2023, with continued demand for homes and steady price growth. However, the market may begin to stabilize as the growth rate slows down, which may lead to more balanced conditions between buyers and sellers.

Living in Florida is becoming increasingly costly due to the average wage that has been set within the state. Statistics from The Bureau of Labor have revealed that workers in Florida make around $26 per hour, making it significantly higher than the national average hourly rate of $10.96.

Business Insider also reports that more people are expected to move to Florida in 2023. They cite a report by U-Haul, which found that Florida is the top destination for one-way U-Haul truck rentals in 2021. The report also predicts that Florida will continue to be a popular destination for people relocating in 2023.

Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average.

Can You Afford the Average Cost of Living in Florida? Yes, you can afford the average cost of living in Florida. If you receive a salary in excess of $50,000 per year, you will have enough to cover your expenses.

Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

Will rent prices go down in 2023 Florida? ›

While there's no consensus on what rents will do exactly in 2023 — go up a little, go down a little, or stay flat, according to three forecasts — what's clear is they are expected to return to more normal growth patterns, instead of the unsustainable, record rates seen in 2021 and 2022.

Moody's Sees More Price Drops

But values have held up better in several Florida markets and some other Southeast states. “On a national basis, we expect home prices to decline about 4% both in 2023 and in 2024,” the analysts said.

Florida is an excellent location if you're looking for work. According to Wallethub, Florida is the 14th best state to find a job. The unemployment rate in Florida was only 2.5% in December 2022. With the national unemployment rate at 3.4%, many people move to Florida to take advantage of opportunities in their fields.

Florida is an especially good place to live for folks who love sunshine, retirees, and people looking to pay less in income taxes. Natural disasters complicate the question a bit with millions (often billions of dollars in damage done each year) but overall Florida is a good place to live.

One of the most popular states to move to in 2023 is Texas, and for good reason. This state boasts an impressive job market since it is home to many tech companies, startups, and artistic hubs.

The population will continue to grow; Florida will have about 5 million new residents. About 1 in 4 Floridians will be 65 or older. Non-ethnic whites will become a minority by 2030, and nearly 1 in 5 Floridians will be foreign-born. People will pack the cities.

The other reasons that people leave the state after moving here are varied: “A nearly 14,000-member Facebook group for people moving out of Florida has cited severe weather, low wages, crowded beaches, changing politics, and steep housing prices as reasons people left.”

Based on migration data from the U.S. Census Bureau, Americans are moving to Austin, Texas; Raleigh, North Carolina; Orlando, Florida; Dallas, Texas; and Phoenix, Arizona. The most moved-to cities are based on percentage increases in population since 2010.

Key points. Inflation seems to be slowing, and some things could start to get cheaper in 2023. The cost of real estate, rental, cars, and gas could fall, at least a little. Don't get too excited about potential price drops, as there's still a lot of uncertainty about the economy.

Is Florida a cheap state to live in? ›

Is it expensive to live in Florida? Though the state has long had a reputation for being an inexpensive place to live, housing costs are high. Rents and sale prices are both well above national averages. However, the overall cost of living in the state is about on par with the national average.

Low income describes a family at or below 80% of area median income. Moderate income describes a family at or be- low 120% of area median income (at or below 100% of median income for federal programs).

The state's regressive tax system allows the richest one percent of Floridians to pay just 2. 3% of their incomes in state and local taxes while the state's poorest 20% households pay 12.7%.

With few exceptions, employers in these states must pay each employee a minimum of $7.25 per hour.

Florida's official nickname is “The Sunshine State,” but it may as well be “The Low-Tax State.” That's because Florida is the only state east of the Mississippi that doesn't collect income taxes of any kind. The state does charge a sales tax rate of 6% though, and most counties charge sales taxes of their own.

Cape Coral

Known as the “Waterfront Wonderland,” this charming town is not only one of Florida's most affordable places but it is also one of the safest. Located in the southwestern part of the state near Fort Meyers, Cape Coral has an intricate system of canals which allow its residents to always be near the water.

Dade City is possibly the most affordable place to live in Florida. The median cost in Dade City is about $179,500, which falls well below Florida and the national average. You can expect to pay about $1,372 for a one-bedroom apartment in the city. It's a spacious and safe place to live.

The most affordable beach town in Florida is Pensacola, although technically speaking, it's a city, not a town. City living can be affordable, even with waterside living. Pensacola currently has a median home value of $235,000 in 2022. The median housing cost (for rent and mortgages) is $932 per month.

Why buying real estate in 2023 could be a good idea? ›

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

Mortgage rates are likely to decrease slightly in 2023, although they're highly unlikely to return to the rock-bottom levels of 2020 and 2021. However, rate volatility may continue for some time.

Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point. Figures are the predicted quarterly average rates for the 30-year fixed-rate mortgage.

Over the past few years, home prices in Florida have skyrocketed. Per Redfin data, in the middle of 2020, the median sale price was $275,600 — by April 2023, that figure had jumped to $400,800. The state remains one of the top markets people move to, and its increasing population will likely keep the market robust.

Rents are expected to stabilize as more apartments hit the market — good news to look forward to in the year ahead. No one can be certain what the new year will bring for rents and home prices. But those who study the markets say renters have the most to look forward to as prices slowly drop nationwide.

In 2023, experts forecast that the Florida home prices may fall down to 20%. Mortgage Rates Have Almost Doubled: Mortgage rates almost doubled from April 2021's 3.12% to 6.27% for the week ending on April 13, 2023. Sellers are Coming Back, but Slowly: The number of listings dropped by 14.9% in March 2023.

Share: The waterfront hamlets of Satellite Beach and Marco Island top our list of the safest places to live in Florida in 2023, while the safest large cities in Florida are Cape Coral and Port St. Lucie. Whether you're just starting a family or retired, safety is always a major concern when searching for a home.

From July 2021-July 2022, nearly 444,500 people moved to Florida, which compared to the previous year was a gain of 185,000, the largest year-over-year impact of residents moving. Florida also ranked #1 in domestic migration, #2 in international migration, and #1 with the most people moving in per day at 1,218.

Census estimates show that 220,890 more people moved in than out of Florida between July 1, 2020, and July 1, 2021, making the state the nation's top destination for domestic migration. Data from the moving company United Van Lines found that 62.3% of Florida movers were inbound and 37.7% were outbound in 2021.

Why is everyone moving to Florida right now? ›

Top Reasons to Move to Florida

The Sunshine State is known for its warm weather and sunny days, which can be attractive to those looking to escape colder climates. Florida is a popular destination for retirees due to its warm climate, low taxes, and affordable cost of living.

Over 70 percent believe Florida's overcrowding and overpopulation is a major problem. Nearly 60 percent believe that adding another five million people to Florida's population is a serious problem. Forty percent say Florida has become a less comfortable place to live over the past five years.

How Much Money Do You Need to Move to Florida? On average, it costs $3,000–7,000 to move out of state. Of course, the real cost to move really depends on how much stuff you're moving and how far away you currently live from your destination.

According to the Move.org report, 65% of the people who moved were between the ages of 25 and 44 and most people moved between August and October of 2020.

Hawaii is the most expensive state to live in, with a cost of living index of 184.

The all-items Consumer Price Index (CPI), a measure of economy-wide inflation, rose by 0.5 percent from March 2023 to April 2023 and was up 4.9 percent from April 2022. The CPI for all food increased 0.2 percent from March 2023 to April 2023, and food prices were 7.7 percent higher than in April 2022.

If you are looking for a place to spend your golden years, look no further. Florida was ranked the second-best state to retire to in 2022, due primarily to low taxes and great weather.

The bottom line is Florida is a far less expensive state to live in than California because it has less expensive homes, lower sales tax on things you buy, and lower income taxes on money you earn.

Will there be a housing crisis in 2023? ›

It's also worth noting that while foreclosure rates are up year-over-year, experts do not expect to see a wave of foreclosures in 2023, even where home values are depreciating, as many homeowners have substantial equity due to progressive home price appreciation in recent years.

Prices are currently coming down in some markets, and the national median price was ever-so-slightly lower in February 2023 than it was in 2022, but experts do not expect dramatic drops. In many areas where prices are falling, the declines have not significantly improved affordability.

With the main causes of high inflation now running in reverse gear, the economy is set to receive a large deflationary impulse. After peaking at 6.2% in 2022, we expect inflation to fall to 3.5% for 2023. Over 2024 to 2027, we expect inflation to average just 1.8%—below the Fed's 2% target.

But SmartAsset found that salary requirements for a comfortable life, averaged across the nation's 25 costliest cities, are now $68,499, compared with $52,686 in 2022.

A recent report from SmartAsset found that you'll need to earn an average $68,499 post-taxes to live comfortably in America's 25 biggest metro areas. That's a 20% increase from a year ago, when you needed just $57,013 after taxes.

Switzerland has one of the highest costs of living in the world. Rent is only $1,633.64 but worldwide income tax can run up to 40%. You're even taxed for living in your own home. However, Swiss citizens at least enjoy purchasing power that's 12.1% higher compared to New York.