The long-cherished dream of retiring to Florida's sunny shores is becoming increasingly unattainable for many middle-class Americans as the state's once-affordable landscape transforms into a high-cost environment. According to the Florida Chamber of Commerce, the very low cost of living that made the Sunshine State a magnet for retirees has significantly diminished, prompting those who sought budget-friendly retirement to consider alternatives.
From Affordable Haven to Pricey Destination
Historical records, such as a 1958 Virginia newspaper article, celebrated Florida's retirement appeal by highlighting its lack of income tax, favourable climate, and notably cheaper housing. The article specifically noted that two-bedroom homes cost between 20 and 40 percent less than in most other parts of the country. Fast forward to 2026, and this affordability advantage has completely vanished, leaving retirees questioning whether Florida can still claim its title as America's premier retirement destination.
Real Estate Prices Reach Unprecedented Heights
The pandemic-era migration surge from 2020 to 2022, which saw over half a million people relocate to Florida, acted as a catalyst for dramatic price increases. Data from the Tampa Bay Economic Development Council and the American Institute for Economic Research reveals that home prices in Florida rose by 51 percent during this period, outpacing the national average increase of 41 percent.
More broadly, the Federal Housing Finance Agency's House Price Index indicates that Florida experienced the largest home price growth of any U.S. state between 2000 and 2024. This trend is particularly evident in cities like St. Petersburg and Fort Lauderdale, which rank first and third respectively among American cities with the fastest-growing sales prices, according to Redfin.
The Villages and Beyond: A Case Study in Rising Costs
Sumter County, home to the massive Villages retirement community with over 150,000 residents and an average age of 68.4, exemplifies this affordability crisis. The county's median home price stands at $446,381, according to the National Association of Realtors, which is more than $35,000 above the national median of $410,800.
This pattern extends across Florida's oldest counties. Data from ATTOM Data Solutions and the National Association of Realtors shows that five of the state's ten oldest counties have median home prices exceeding the national median:
- Sumter: $446,381
- Charlotte: $336,239
- Sarasota: $444,503
- Citrus: $302,800
- Indian River: $399,401
- Highlands: $226,883
- Martin: $455,732
- Collier: $612,299
- Flagler: $360,000
- Manatee: $418,542
Statewide, Florida's median home price was $411,500 at the end of 2025, ranking 30th in the country according to Redfin.
The Broader Affordability Squeeze
Escalating real estate prices are part of a larger cost-of-living challenge. The Council for Community and Economic Research's Cost of Living Index placed Florida 31st nationally from July to September 2025, based on expenses for groceries, housing, utilities, healthcare, and other daily needs.
This financial pressure is directly impacting migration patterns. A Wall Street Journal study published in January, using census data, found that net migration of households earning $75,000 or less fell by 44 percent from 2013 to 2023. Among households headed by someone aged 55 to 64, the net migration rate declined by 17 percent.
Where Are Retirees Going Instead?
Florida's business community acknowledges these shifting demographics. The Florida Chamber of Commerce noted in early 2024 that rapid population growth contributes to higher prices, and that the state's former cost-of-living advantage has waned, potentially driving residents to look elsewhere.
Net migration data for 2023 shows Florida losing the most households to North Carolina, Texas, Georgia, Tennessee, and Alabama. These states offer competitive tax benefits or lower living costs, making them increasingly attractive alternatives. While Florida was once distinctive for having no state income tax, several other states have now adopted similar models.
This outward migration trend persisted from 2018 to 2023, and the Chamber anticipates it will continue into 2024, highlighting affordability as the critical pressure point that needs addressing to reverse the trend.
The combination of skyrocketing housing costs and broader living expenses is fundamentally reshaping Florida's identity as a retirement paradise, forcing many to reconsider their golden years plans and seek more economical options beyond the Sunshine State's borders.
