How Much House Can You Afford in Florida vs. California?
Written by
Dawn Allcot
Edited by
Nicholas Morine
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It’s no secret that certain states have a lower cost of living compared to the average cost across the U.S. For instance, California is pricier than Florida across the board when it comes to daily expenses like food, transportation, childcare, sports and entertainment, and clothing.
Housing prices also dramatically affect the cost of living in different states. According to research from MyLifeElsewhere.com, housing costs — including rent and utilities — are 17.8% higher in California than in Florida. But if you’re in the market to buy a home in California, get set for sticker shock.
Median Sale Price in California Sky-High
The median sale price for homes across California in February 2024 broke the $800,000 mark at $806,490, up 9.7% year-over-year, the California Association of Realtors reported in a press release. The average price per square foot is $407.
You’ll also likely be competing with other buyers, which can lead to pressure to make a fast decision and possibly pay more than you wanted. California homes stay on the market an average of just 22 days, according to C.A.R.
Florida Houses Remain Relatively Affordable
In January 2024, Florida homes sold for a median price of just $404,500 — roughly half the price of a California home — with Orlando houses going for a median sale price of just $369,000, according to data from Houzeo.
Even if you compare one of Florida’s most expensive cities with Los Angeles, you’ll pay just $524,600 for a home in Miami, compared to $912,500 for a house in Los Angeles. Plus, the Miami home is likely to be newer, since the median age of a home in Miami is 46 years old, compared to 58-year-old houses in California, according to BestPlaces.net.
Note that homes in both cities cost more than the median selling price across the U.S., which is $338,100.
Property Taxes Slightly Higher in Florida, But No State Income Tax
It’s also worth acknowledging that property tax rates are slightly higher in Florida, depending on where you live. A blog at the Reason Foundation reported that Florida property tax rates are 1.06%, compared to 0.81% in California.
But Florida has no state income tax, compared to more than 10% in California. The highest-earning residents will pay a marginal rate of 14.4% in California, GOBankingRates recently reported, listing California as the worst state for millionaires.
Essentially, you can get double the home for your money in Florida than in California. A quick Zillow search revealed a tiny, 816-square-foot, 2-bedroom, one bath home in Reseda, California, selling for $545,000, amidst multi-million dollar mansions in the Los Angeles area.
Meanwhile, $540,000 will get you a 1,400-square-foot, 3-bedroom, 2-bathroom home in Miami. The house boasts modern, stainless steel appliances rather than an outdated kitchen and was built in 1991. The California property was built 40 years prior, in 1951.
The California property would have a mortgage of $3,508 per month with taxes, while the Florida residence would cost roughly $3,406, including Homeowners Association fees.
If you wanted to venture further north to Central Florida, $475,000 will get you a four-bedroom, 2.5-bath, 2,351-square-foot “slice of paradise,” as the Zillow listing calls it. The home includes a heated pool inside a screen room, access to tennis courts, modern décor, a laundry room, updated kitchen, and was built in 1993. You’ll pay $40 in HOA fees, but your total mortgage payment would fall just under $3,000.
You can use the GOBankingRates mortgage calculator to find out how much one of these houses or others would cost based on interest rates, your down payment, and the terms of the loan.
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