FLORIDA – The cost of living in Florida has accelerated at nearly five times its previous pace over the last decade, driven largely by housing, insurance and rent increases that are outstripping wages and forcing some residents to consider leaving the state.
A new report from Florida TaxWatch shows that while prices rose modestly through the 2010s, the rate of increase has surged in the 2020s. The state’s regional price growth averaged about 1.3% annually in the previous decade but has jumped to roughly 5.8% per year in recent years, a nearly fivefold increase.
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That rapid acceleration is being felt across nearly every household expense, from rent and groceries to child care and utilities, with housing costs leading the spike.
Nearly 90% of Floridians surveyed in 2025 said they were concerned about inflation, and about half reported considering moving out of the state because of rising costs.
Housing costs dominate affordability crisis
The report identifies housing as the primary driver of Florida’s affordability challenges.
Homeowners are facing some of the highest insurance costs in the nation. Average annual property insurance premiums reached $2,794 through 2025, up 63% since 2020. Combined with rising property taxes, annual housing-related costs can exceed $10,000 for many homeowners.
Renters are also under pressure. Florida’s average rent climbed from $1,194 in 2015 to $2,208 in 2025 an 85% increase over the decade. During that time, the state jumped from the 14th most expensive rental market in the country to the sixth.
The report notes that rent growth accelerated sharply after 2020, mirroring broader inflation trends but rising faster than much of the southern United States.
Everyday essentials rising, too
Beyond housing, essential goods and services have also seen significant price increases:
- Eggs have surged 135% over the past decade.
- Rice prices are up 46%, and bread has increased 30%.
- Child care costs have climbed steadily, reaching more than $42 per hour in 2025.
Even utilities like electricity and gas have trended upward, adding to monthly household expenses.
The report notes that while these increases are generally in line with national trends, wage growth has not kept pace, leaving many residents financially strained.
Economic growth vs. affordability
Florida’s economy remains one of the largest in the world, ranking fourth in U.S. GDP and third in population. But the report emphasizes that economic growth does not necessarily translate to affordability for residents.
An influx of new residents has helped fuel demand for housing, while long-term residents increasingly feel priced out.
While inflation has cooled somewhat since peaking around 2022, costs remain significantly higher than pre-pandemic levels.
The report warns that future affordability will depend heavily on both federal monetary policy and state-level action, particularly around housing, insurance and tax policy.
Without intervention, researchers say, the gap between income and the cost of living could continue to widen, reshaping who can afford to live in Florida.