The Truth About Rising Housing & Cost of Living in South Florida

By Raymond Fernandez

Originally from New York, I relocated my family to South Florida 19 years ago. Knowing that we wanted to live in Florida but not where exactly, we did a thorough investigation of the entire State and consider ourselves fortunate that we decided on the exact right place for us.... South Florida.

Are you wondering how rising housing prices will affect your budget? It’s a question many people are asking. If you’re thinking about buying a home, moving, or even just planning for the future in Wellington, understanding how the cost of living is changing is key.

Rising costs in housing and living expenses. The cost of living in 2025 is set to rise, and one of the biggest factors contributing to this change is the housing market. In places like Palm Beach, Florida, housing prices have been going up, and experts predict this trend will continue.

The average person spends about $2,873 a month, while families of four spend around $6,326 each month. This is about 16% higher than the national average, which means that living here is more expensive than in many other places. Home prices are a major reason for this rise. For example, in 2025, the median home price in Palm Beach County is around $615,000, up by about 2% from the previous year.

Everyday expenses like rent, groceries, and services are also rising, making it harder for people to keep up with their budgets. Inflation plays a role, but it’s still manageable. Even though costs are rising, it’s important to understand that the market isn’t jumping dramatically as it did in previous years, so it’s still possible to find good deals if you know where to look.

Affordability and what’s ahead. With home prices rising faster than salaries, many people are finding it harder to afford homes. Home prices are now about six times higher than the average income, which is putting pressure on both workers and families.

The good news is that working directly with new builders might help, as they offer discounts, deals, and incentives to help you save money in this competitive market.

Looking ahead, experts predict the cost of living will continue to increase at a steady pace. Housing inventory is improving slowly, but it’s still not enough to meet the strong demand. Florida’s tax advantages and continued migration are expected to keep home demand high.

If you plan to move or buy, you’ll need to account for slight price increases in housing and everyday expenses. Affordability will remain a challenge for middle-class buyers, but luxury homes and waterfront properties are still seeing strong demand.

Navigating the rising costs. If you’re relocating or considering buying new construction, it’s a good idea to keep an eye on pricing trends and look for builder deals. Understanding the local housing market and how costs are trending can help you make smarter choices about where to live and what to buy.

For long-term plans, consider the impact of inflation and keep track of utilities, insurance, and taxes, which can significantly affect homeowners. Staying informed about these trends helps you plan a better financial future and make decisions that fit your budget.

If you’re ready to explore the Palm Beach County housing market or have questions about buying a home, feel free to reach out to us at 561-781-7821 or email info@livinginpalmbeachfl.com. We’re here to help you navigate the changing market and find the perfect home for your needs.