Executive Summary
For millions of Floridians, the defining economic question of the mid-2020s isn't about growth or GDP — it's about whether they can still afford to stay. A Florida Atlantic University survey from October 2025 found that just under 90 percent of Floridians were somewhat or very concerned about inflation, with 56 percent saying they were very concerned. Nearly half have considered moving out of the state due to cost of living pressures.
This report examines the data behind that anxiety. Florida ranks as the 18th most expensive state in the nation — and the 4th most expensive in the American South, well ahead of 5th-place North Carolina. What makes the picture especially striking is the pace of change: cost-of-living growth that averaged just 1.3 percent annually during the 2010s surged to 5.8 percent per year in the 2020s, a nearly fivefold acceleration. Price increases in both the Miami and Tampa metropolitan areas outpace the broader Southern region.
Housing is the dominant driver. Florida has held the nation's highest residential home insurance premiums since 2020, averaging $2,794 per year through Q3 2025 — a 63 percent increase since 2020. Average asking rents climbed from 16th-highest nationally in 2020 to 6th-highest by 2025, reaching $2,208 per month. Combined property tax and insurance costs can easily surpass $10,000 annually for a homeowner. Beyond housing, grocery staples tell a similar story: eggs rose 135 percent between 2015 and 2025, rice 46.3 percent, bread 30 percent.
There are signs of relief on the horizon. Price increases appeared to peak around 2022 and have continued to slow, though they remain above pre-pandemic levels. Florida's lack of a personal income tax continues to give residents a meaningful advantage over many other states. However, the trajectory of Federal Reserve policy and the state's approach to housing, health care, and property insurance affordability will determine how much of that advantage remains intact.
Key Takeaways
- Cost pressures are real and Florida-specific: Florida's cost of living is outpacing both its own historical trend and the broader Southern region, confirming residents' concerns are grounded in data — not just perception.
- The 2020s changed everything: Annual cost-of-living growth nearly quintupled compared to the previous decade, affecting housing, groceries, utilities, and childcare alike.
- Housing leads the surge: Insurance premiums, rising property taxes, and skyrocketing rents have made Florida one of the most expensive places to live in the South — for both owners and renters.
- Everyday necessities are less affordable: Grocery staples, childcare rates, and utility costs have all risen sharply, straining household budgets even beyond the housing market.
- Inflation is easing, but not gone: Price growth has slowed since its 2022 peak, and Florida's no-income-tax advantage provides some offset — but costs remain significantly above pre-pandemic baselines.
- State policy must step up: With national monetary policy as the primary inflation lever, Florida-level action on housing, health care, and property insurance affordability is essential to keeping the state livable for all residents.