Housing Costs for Florida Retirees in 2026: What You Need to Budget For

Florida remains one of the most popular retirement destinations in the country — and for good reason. No state income tax, warm weather, abundant healthcare options, and a culture built around active retirement living. But the cost of housing in Florida has changed significantly over the past several years, and retirees who planned their budgets based on older assumptions may be in for a surprise.

I'm a Medicare broker, not a real estate agent — but housing decisions directly affect retirement financial health, which in turn affects healthcare decisions. I see this connection every day with clients. Here's what you need to know.

After the dramatic price run-up of 2021–2023 and the subsequent cooling, Florida's housing market in 2026 has stabilized — but at price levels significantly higher than pre-pandemic norms.

Median home prices vary significantly by region, but here's a general picture for areas popular with retirees:

• Northeast Florida (Palm Coast, St. Augustine, Ponte Vedra): $350,000–$550,000 median for single-family homes
• Jacksonville metro: $280,000–$420,000
• Daytona Beach / Ormond Beach area: $280,000–$380,000
• The Villages: $300,000–$500,000+
• Sarasota / Naples / Southwest Florida: $450,000–$700,000+
• South Florida (Miami-Dade, Broward, Palm Beach): $500,000–$900,000+

These are medians — active adult communities, waterfront properties, and newer construction will be higher.

If there's one housing cost that has blindsided Florida retirees more than any other in recent years, it's homeowner's insurance.

Florida's insurance market has been in crisis. Several major carriers have exited the state entirely. Citizens Property Insurance (the state-backed insurer of last resort) has grown dramatically and is now pushing policyholders to private carriers through its "depopulation" program.

What this means for retirees:

• Annual homeowner's insurance premiums in many Florida counties now run $3,000–$8,000+ for a typical single-family home — and significantly more for older homes, coastal properties, or homes without hurricane-rated roofs and windows
• Flood insurance (required for homes in flood zones, and advisable for many others) adds another $1,000–$4,000+ annually through the National Flood Insurance Program or private carriers
• Wind mitigation inspections can reduce premiums — if you haven't had one done, it's worth the $150–$200 cost

Budget reality check: A retiree who budgeted $1,500/year for homeowner's insurance based on what they paid in their northern state may be paying $5,000–$6,000 in Florida. That's $300–$375/month more than anticipated — real money in a fixed-income retirement.

Florida's property taxes are moderate compared to many northern states, but they're not trivial — and they've increased as assessed values rose.

The homestead exemption reduces the assessed value of your primary residence by $50,000 for property tax purposes. If you're 65 or older and meet income requirements, additional exemptions may be available (more on this in our property tax relief article).

The Save Our Homes cap limits annual increases in assessed value for homesteaded properties to 3% or the rate of inflation, whichever is lower. This is a significant benefit for long-term Florida homeowners — but it doesn't apply to new buyers, who are assessed at current market value.

Typical property tax rates in Northeast Florida run approximately 0.8%–1.2% of assessed value annually. On a $400,000 home with a $50,000 homestead exemption, that's roughly $2,800–$4,200/year.

Many Florida retirement communities and active adult developments have Homeowners Association (HOA) fees that cover amenities, landscaping, and community maintenance. These fees vary enormously:

• Basic HOA (lawn care, community pool): $150–$400/month
• Active adult community (The Villages, Del Webb, etc.): $200–$600/month
• Gated community with full amenities: $400–$1,200/month
• Condo associations: $400–$1,500+/month (often includes building insurance and exterior maintenance)

Important: HOA fees are not fixed. They can increase — and special assessments for major repairs (roofs, elevators, parking lots) can add thousands in unexpected costs. Florida's new condo reserve requirements, enacted after the Surfside collapse, have significantly increased condo fees for many buildings.

With home prices elevated and mortgage rates still above historical lows, some retirees are choosing to rent rather than buy — at least initially.

• Flexibility to try a community or area before committing
• No exposure to homeowner's insurance crisis, property tax increases, or major repair costs
• Liquidity — your capital stays invested rather than tied up in real estate
• Easier to relocate if health needs change (closer to family, assisted living, etc.)

• Stability — fixed housing costs (with a paid-off home or fixed mortgage)
• Homestead exemption and Save Our Homes cap benefits
• No landlord risk — rent increases, lease non-renewals, property sales
• Potential appreciation — though this is less certain than it was

Florida rental costs have also increased significantly. A two-bedroom apartment in Palm Coast runs $1,400–$1,900/month. In Jacksonville, $1,300–$1,800. In Sarasota or Naples, $2,000–$3,000+.

This is where my expertise comes in. Housing costs affect healthcare decisions in ways retirees often don't anticipate:

1. Higher housing costs can push you toward Medicare Advantage If your housing costs are higher than expected, you may be looking for ways to reduce other expenses. Medicare Advantage plans often have $0 premiums (you still pay Part B), which is attractive. But as I discuss elsewhere, the trade-off is network restrictions and potential out-of-pocket exposure.

2. Location affects healthcare access Where you live in Florida dramatically affects your Medicare options. Palm Coast and Flagler County have fewer Medicare Advantage plans and a smaller provider network than Jacksonville or Orlando. If you're considering a rural or smaller-market area, research the healthcare infrastructure before you commit.

3. IRMAA and housing sale proceeds If you sell a home with significant appreciation, the capital gains could push your income above IRMAA thresholds — increasing your Medicare Part B and Part D premiums for two years. This is worth discussing with a financial advisor before you sell.

4. Assisted living and long-term care costs Florida assisted living costs run $3,500–$6,000+/month. Memory care is $5,000–$8,000+/month. These costs are largely not covered by Medicare (which covers skilled nursing care, not custodial care). Planning for this possibility is part of a complete retirement housing strategy.

1. Get real insurance quotes before you buy — not estimates, actual quotes for the specific property
2. Research the HOA financials — ask for the reserve study and recent meeting minutes
3. Understand the flood zone — FEMA flood maps are available at msc.fema.gov
4. Factor in all costs — mortgage/rent + insurance + property taxes + HOA + maintenance = true housing cost
5. Research healthcare access in the specific area you're considering
6. Talk to a Medicare broker before you finalize your location — your Medicare options vary significantly by county

I'm happy to walk through the Medicare landscape in any Florida county you're considering. It's a free conversation and could save you from a costly surprise.

Schedule a free Medicare consultation →

William Gray is an independent Medicare broker serving Northeast Florida. This article is for informational purposes only and does not constitute financial, legal, or real estate advice. Consult qualified professionals for guidance specific to your situation.