Today, Florida TaxWatch released its report, Cost of Living in Florida: A Mid-Decade Check-In. These metrics clearly confirm residents’ suspicions that not only is Florida more expensive to live in than the rest of the region but living in Florida is becoming more expensive year by year. While inflation may be a national problem driven by federal monetary policy, there are other factors that exacerbate this issue in Florida.
Florida TaxWatch President and CEO Jeff Kottkamp said, “Over the last few years, many people in America have been focused on one simple thing: the cost of living. Not just expanding consumption and buying the next new thing but being able to afford everyday life. In fact, nearly 90 percent of Floridians polled stated they were somewhat concerned or very concerned about inflation, or the increase in price levels over time. Nearly 50 percent say they have considered moving out of Florida due to cost of living.
“This increased consideration given to moving, in view of the increase in people moving from other states to Florida, paints a picture of a shifting demographic. While Florida attracts new residents, this comes at the cost of losing some of the current residents feeling the impact of an ever-increasing cost of living and being forced out of what some have always called home.”
If Florida was its own country, it would have the 15th largest economy in the world. It is ranked 3rd in population and civilian labor force at the end of 2025 and 4th in GDP in the nation. Florida’s position as an economic powerhouse is charged by its strong workforce and economic hubs. While impressive, these gross output measures are not very accurate indicators of affordability for the average resident.
Affordability measures, such as The Council for Community and Economic Research’s Cost of Living Index (COLI), use the price of similar goods and budgets of the average household across the county to compare how expensive states are compared to each other at a point in time.
This report highlights factors such as ad valorem taxes, rent prices, childcare costs, and groceries, which show increases across the board. Moreover, costs have been going up at a rate far beyond that of the 2010s and have begun to reach astronomical levels, even in goods typically more resistant to universal price increases. For example:
Fortunately, these price increases seemed to have peaked around 2022 and have continued to slow since, although they are still above pre-2020 totals. Additionally, Florida’s favorable tax policies mean residents can keep a larger share of their income as compared to most states, alleviating some of the pressure experienced by other states with personal income taxes.
Keeping an eye on the state level, focus must continue to be placed on initiatives and programs that allow Floridians to live and prosper without having to survive paycheck-to-paycheck. Inflation is far from an issue left in the past, and while national policy is the strongest influencing factor, housing, health care, and property insurance affordability policy at the state level must be prioritized to keep Florida affordable.
To learn more and access the full report, please click here.