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With miles of coastline and a thriving economy, Florida has always attracted homebuyers from across the U.S., but the state’s appeal significantly increased following the rise of remote work in 2020 and 2021. This boost in buyer demand has kept prices propped up, with the median sale price of a home at $410,000 in December 2023 according to Florida Realtors®. This is even higher than the national median price of $382,600, according to the National Association of Realtors®, and could leave prospective buyers wondering where the affordable entry points into the Florida real estate market are.
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In order to find where the most affordable areas are in Florida, Zoocasa compared the median home prices for single-family and condo/townhouses in December 2023 in 22 metropolitan statistical areas and calculated the average monthly mortgage payment in each city. Median home prices were sourced from Florida Realtors®. The average monthly mortgage payment was found using the Nerd Wallet mortgage calculator, assuming a 15% down payment and a 6.6% 30-year fixed rate. As of the week of January 22, 2024, according to Freddie Mac, the U.S. average 30-year fixed rate was 6.6%, and according to the 2023 Profile of Home Buyers and Sellers from the National Association of Realtors®, in 2023 the median percent down payment for all home buyers was 15%.
Flexible and determined buyers have plenty of choice when it comes to finding single-family home prices below the state median. In fact, the top three most affordable areas in Florida, Sebring MSA (Highlands County), hom*osassa Springs MSA (Citrus County), and Ocala MSA (Marion County), all have median prices below $300,000.
The most affordable city for single-family homes is Sebring MSA with a median price of $257,500 in December 2023 and an average monthly mortgage payment of $1,958. This is the only city we analyzed with an average monthly mortgage payment below $2,000 for a single-family home, meaning it stands out as an exceptionally affordable option for homeowners. Sebring MSA has also experienced significant price growth in the last few years, with a 5% 1-year price increase and a 43.1% 3-year price increase, suggesting the homes in the area will continue to see their values appreciate.
hom*osassa Springs MSA (Citrus County) and Ocala MSA (Marion County) have also experienced substantial price growth in the last three years at 44.1% and 47.4% respectively. Both cities boast median home prices below $290,000 and have monthly mortgage payments of just under $2,200.
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The Florida Panhandle provides another good option for homeowners prioritizing affordability, with Pensacola-Ferry Pass-Brent MSA (Escambia and Santa Rosa Counties) and Tallahassee MSA (Gadsden, Jefferson, Leon, and Wakulla Counties) both making our most affordable list for single-family homes. In Pensacola-Ferry Pass-Brent MSA, homebuyers can expect to pay around $315,000 for a median-priced single-family home, while homebuyers in Tallahassee MSA will pay around $335,000. Notably, Pensacola-Ferry Pass-Brent MSA is one of the only areas to have experienced a year-over-year price drop, declining by 0.9% from December 2022. The only other city to have experienced an annual price decline was Gainesville MSA (Alachua and Gilchrist Counties) with a 1.5% year-over-year decline.
“You typically get more house for your buck in places like Pensacola or Ocala,” explains South Florida eXp agent John Scalia. “But you can find pockets of affordability in every city. It might be a condo located a bit west of the beach, or maybe it’s a home that needs renovating. Without a doubt, you can find affordability in every city if you’re flexible. Your dream house is the way you make it, either you build it or you renovate it.”
With a median condo/townhouse price of $159,900 in December 2023, Sebring MSA tops the list of the most affordable places to buy a condo/townhouse in Florida. Of the seven areas on the list, four have experienced year-over-year price drops including Sebring MSA, Ocala MSA, hom*osassa Springs MSA, and Palm Bay-Melbourne-Titusville MSA.
On the other end of the spectrum, Tallahassee MSA condo/townhouses have experienced the greatest year-over-year price increase at 25.7%. Looking at price growth in the past three years shows even greater price appreciation, with the median condo/townhouse price rising by 53.7% since 2020. This suggests that Tallahassee MSA condo/townhouse buyers can build equity faster, while also opening up opportunities for rental property investments.
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Only two areas, Lakeland-Winter Haven MSA and Palm Bay-Melbourne-Titusville MSA, have average monthly mortgage payments above $2,000 for a condo/townhouse. Homeowners in Sebring MSA, Ocala MSA, and Gainesville MSA have the lowest average monthly mortgage payments at $1,305. $1,405 and $1,473 respectively. Though Gainesville MSA only has the seventh-most affordable single-family home price, the region comes in third for affordability in the condo/townhouse market. This is why it’s important for homebuyers to shop around and consider different housing types as market trends and affordability can vary significantly.
No matter where you choose to live in Florida, it’s important to do your research and find what areas best suit your lifestyle and preferences. “My advice to someone moving to Florida from out of state is to come down and see the areas. Don’t jump into a big decision before scoping out different regions and seeing firsthand where you want to live,” added Scalia.
Considering a big move and don’t know where to start? Give us a call today to speak with a qualified agent who can guide you on local market conditions, interest rates, and more!
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