How Much Income You Need to Buy a Home in Florida 2025

How Much Salary Do I Need to Afford a House in Florida?

The Florida real estate market may be cooling down, offering a chance for younger homebuyers to bask in the sunshine and bake in summer-like temperatures all year round. Still, Florida housing affordability in 2025 remains a challenge for many first-time buyers.

According to a report from Florida real estate agents*, the median sales price for single-family existing homes in August was $410,000, representing a 0.4 percent decline over the past year. Meanwhile, condo-townhouse units saw a median price of $290,000, down 6.5 percent year over year. Closed home sales dropped across property types: state-wide, single-family home closings were down 3.9 percent year over year, and condo-townhouse closings fell about 6 percent.

What’s more, Florida homes are staying longer on the open market, with the median days rising to 72, up from 58 a year ago.

Since 2022, housing inventory in Florida has rebounded substantially, with active listings topping 166,000 in August, according to Federal Reserve data*. This is higher than Texas and almost double that of California.

The number of active listings is most prevalent in the condo market, as many building dwellers have listed their units on the open market due to one-time charges to replenish the condo association’s reserves.

What’s Driving the Florida Housing Market Slowdown

“While several common headwinds are blowing against the sector, chief among them elevated interest rates and reduced domestic migration inflows, part of the weakness has to do with the implementation of stricter rules regarding the inspection and repair of condo buildings. This has accentuated the pain for older condos,” said Admir Kolaj, an economist at TD Bank, in a recent research note*.

“A growing inventory glut points to additional weakness ahead. Condos play an outsized role in Florida, and the sector’s weakness will take some moderate wind out of the state economy’s sails.”

As a result of recent housing market conditions, younger prospective homebuyers have an opportunity to achieve their dream of homeownership.

But can the typical family be able to afford the cost of buying a home in Florida today? It might depend on the location, type of home, and interest rates. That said, the future is promising.

How Much Salary Do I Need to Afford a House in Florida?

It is no secret that mortgage rates have stabilized and begun to decline, and many Americans are noticing. In addition to an increase in new mortgage applications, refinancing applications have also rocketed, with households taking advantage of modest mortgage relief.

The average 30-year fixed-rate mortgage is hovering around 6.2 percent, according to the Mortgage Bankers Association*. Additionally, industry figures put together by WalletHub show that the average mortgage rate in Florida is below the national level at 6.2 percent.

“Affordability conditions have improved for four straight months, with lower mortgage rates and stronger income growth boosting prospective buyers’ purchasing power,” said Edward Seiler, associated vice president at the Mortgage Bankers Association, in a statement.

What are the homebuying conditions like in Florida?

Assuming a 20 percent down payment, a home price of $402,600, and a 6.2 percent mortgage rate, monthly payments would be approximately $2,500. Since mortgage lenders generally recommend that housing costs should be about 30 percent of annual income, the necessary household yearly income would be $99,000, or approximately $8,250 per month.

Florida Homeownership Costs Beyond the Mortgage

Housing costs, however, could be higher due to rising homeowners’ insurance premiums. In recent years, homeowners’ insurance premiums have increased significantly amid growing climate-related risks, particularly in the state’s coastal areas.

Industry experts estimate that average monthly premiums can range from $730, depending on location, home value, and the type of coverage. The higher the estimated home value, the higher the annual insurance premiums will be.

Tips for Florida Homebuyers in 2025

Ultimately, buying a home in Florida demands financial planning, realistic expectations, and a clear understanding of local market dynamics, especially when it comes to new, stringent rules and regulations. Whether relocating from out of state or upgrading within Florida, prospective buyers should assess their income, credit profile, and long-term financial goals before making a decision.

To afford a typical Florida home in 2025, local real estate experts advise that prospective homebuyers should aim for a six-figure salary, a minimum 20 percent down payment, and a buffer for rising insurance and tax costs.