Thinking about moving to Florida? A new study shows this may…or may not be the right time, depending on where you want to live.
Florida homebuyers have received mixed signals from the housing market in early 2025, as home prices in key areas dipped despite ongoing affordability challenges across the state. According to a recent study by TradingPedia, Florida ranked 31st among U.S. states in terms of housing affordability vs. income, indicating that while prices have eased slightly, homes still remain relatively costly compared to residents’ incomes. Still, buried in all those numbers is some really good news for people wanting to buy a home in Florida.
Nationwide, the median home price hit a striking $428,201 in 2024, contrasted against a per capita income of $72,741, suggesting that an average home now costs nearly six times the average annual income. This trend has left many Americans grappling with difficult choices, as inflation and stubbornly high mortgage rates—despite several Federal Reserve rate cuts—have continued to push the American dream of homeownership further out of reach.
“Even with the housing affordability crisis plaguing the U.S. real estate market, certain states offer relatively accessible housing alternatives if we look at home prices in relation to personal income,” said Michael Fisher of TradingPedia. Iowa, Ohio, and Oklahoma round out the top 3 most affordable states, according to the study.
Last year, the Sunshine State led the nation in home sales, recording an impressive 365,377 homes sold in 2024. This equates to approximately 15.6 home sales per 1,000 residents—the highest per capita sales rate in the country.
However, Floridians continue to feel pressure from high prices in some of the state’s most desirable areas. Key West stood out as the state’s priciest market, with a median home price of $1,075,000 in January 2025. Though Key West experienced a notable 11.16% decline compared to January 2024, the high prices limited sales to just 96 transactions.
But the real story here is that seven Florida cities were in the top 10 nationally for home price decreases – bad news for sellers, but great for buyers. North Port, Tampa, and Lakeland experienced significant price reductions at the beginning of the year, offering potential relief for homebuyers. North Port saw prices drop by nearly 10% from the previous year, with Tampa experiencing a 4.05% decline and Lakeland a reduction of 3.13%.
Tampa remains one of Florida’s busiest real estate markets. Despite the recent drop, the median home price there stood at $355,000, with 3,468 homes sold in January alone. Orlando, another active market, reported 2,329 sales at a median price of $400,000.
For perspective, Naples followed Key West as Florida’s second most expensive housing market, with median home prices at $699,608 and 626 homes sold in January. Miami, West Palm Beach, and Fort Lauderdale also featured prominently among the state’s most expensive locations, with median home prices ranging between $460,000 and $560,000.
The affordability equation in Florida is complex. The state’s median home price of $411,658, coupled with an average per capita personal income of $70,581, creates a home price-to-income ratio of 5.83. While this positions Florida among the relatively more affordable states compared to national averages, it still poses a challenge for many prospective homebuyers.
In terms of nationwide context, it could be worse. California continues to hold the highest median home sale price at $819,983. Yet, Hawaii’s residents face the most daunting affordability challenge. With median home prices at $771,350 and an average income of $70,082, Hawaiians would theoretically need more than 11 years’ worth of income to buy a home outright.
As Florida homebuyers navigate the changing and varied Florida market, the takeaway is clear: opportunities for price relief exist, but finding affordable housing still requires careful consideration of local market conditions.
