Florida cost of living in 2023

With its picturesque beaches and warm climate, Florida has become a magnet for new residents, earning it the title of the number one state for migrations in 2022, as per a study by the National Association of Realtors (NAR). Boasting three cities on Bankrate’s list of the best places to live in America, and being a top pick for retirement, Florida’s appeal is undeniable. However, is the Sunshine State still as budget-friendly as it once was? Let’s delve into the details.

Housing Costs

Housing is a significant factor in the overall cost of living, and recent inflation trends have impacted Florida’s housing market. According to Rent.com’s May 2023 Rent Report, the median rent in major cities like Orlando, Tampa, and Miami stands at $2,153, $2,255, and $3,066 respectively— notably higher than the national median of $1,967. For prospective buyers, the median home price in Florida as of April 2023 was $410,000, surpassing the nationwide median of $388,800.

Utility, Transportation, and Grocery Costs

Utility costs in Florida are generally just 1 percent higher than the national average, but in cities like Miami and Fort Lauderdale, they soar over 20 percent higher. Transportation costs are significant, with many parts of the state requiring a car for mobility. Gas prices align with the national average. MIT’s data shows annual transportation costs at $5,477 for one adult, and $14,484 for a family of four. In terms of groceries, costs in Florida run about $3,926 per year for one adult, and $11,564 for a family of four.

Local Taxes

Florida is known for its absence of state income tax, providing a financial perk for residents. However, it does impose a 6 percent sales tax, which is relatively higher than other states. Additionally, local governments may levy additional sales taxes of up to 2 percent. On average, the combined total sales tax in the state is 7.02 percent. Property tax rates are around 0.91 percent of a property’s value, placing Florida near the national median.

Florida’s Job Market

Florida boasts a robust job market, with major employers including Publix supermarket chain and Walt Disney Parks and Resorts. The state’s unemployment rate as of April 2023 was an impressive 2.6 percent, significantly lower than the national rate of 3.4 percent. This strong job market persists despite the substantial population growth, with Florida leading the nation in net-migration gains in 2022.

Conclusion

Before making the leap to Florida, it’s crucial to consider various factors, including housing costs, daily expenses, job opportunities, and healthcare options. Bankrate’s cost of living calculator can help in comparing different Florida cities. If buying a house, especially in Miami, seek the guidance of an experienced local real estate agent for valuable insights into the market.