The Cost of Living in Florida
Bottom Line: Perception and reality are often aligned. Occasionally they’re not. This might be one of those topics. Do you think Florida’s cost of living is below average, average, or above average? At this point I’d imagine most would answer above average and if you did, you’d be correct. In that regard perception and reality are likely to be aligned. But do you think Florida’s cost of living is much higher than average? This is where there might be a bit of a divide between perception and reality. The answer is that when you account for the total cost of living, Florida is only slightly above average in cost. In analyzing the most recent Cost of Living Index, through the first half of 2023, Florida’s total cost of living is only 1.9% higher than the national average. That leaves Florida with a 31st ranking in cost of living.
Predictably Florida’s housing market is where there’s the greatest affordability divide. The average cost of housing is now 8.2% above the national average. Groceries are also a category where Florida’s a bit more expensive than most with the cost of food coming in at 1.9% above the national average as well. But that’s it. Those two are the only categories where the cost of living is higher than the national average. Floridians have average utility bills, while transportation costs are 1.2% below the national average, healthcare costs are 3.5% below the national average and the costs of all other categories are also 1.2% below the national average. Putting the numbers together paints a picture of affordability within our state that might defy the expectations of even many who’ve lived here for a while.
The cost of housing is obviously a big deal as it’s by far the biggest expense for the average family. And the fact that Florida was well above average housing costs is largely behind why Florida’s overall cost of living is higher than average. However essentially, beyond housing, Florida’s still a very affordable state to live in. In fact, excluding the cost of housing, Florida otherwise has below average cost of living. What this illustrates is that for retirees, and future retirees, especially those who’ve been able to make long-term use of homestead exemptions (to limit the long-term impact of property taxes), once one is able payoff their home and own it outright.... Florida’s downright affordable...at least in comparison to the average state across the country. By way of comparison the average cost of living is 82% higher than average in Hawaii, 43% more expensive in Massachusetts, 40% more expensive in California and 27% more expensive in New York.
Given all that Florida offers our cost of living is pleasantly and perhaps somewhat surprisingly low.