20 Florida Cities Where Retirement Is Becoming Unaffordable — Here’s Why

Florida may be the Sunshine State, but how sunny is your retirement income and savings forecast if you are planning on retiring there?

As it has long been a popular destination for retirees who want to fill their days with beautiful beaches, warm weather, rambling golf courses, and the luxury of no state income taxes, even many smaller Florida cities are seeing a spike in real estate prices and general expenses across the board.

While financially planning for your life after work, you may have already ruled out retirement communities in more expensive places like Miami, Fort Myers, Palm Beach, or Key West, but it is also good to know which smaller towns look to be offering less competitive cost of living options.

GOBankingRates recently evaluated which cities in Florida have rapidly increasing housing prices, property taxes, monthly expenses, mortgage rates or cost of living. Here are some key findings:

• Of the over 450 cities in the study, nearly 30 have an average home value of over $1 million — places such as Key Largo, Bal Harbour or Miami Beach. However, the list below will focus more on small towns that are becoming unaffordable.
• All 20 cities on this list still have an estimated cost of living under $3,000 a month.
• Thirteen out of 20 of the cities listed have a monthly mortgage payment coming in under $1,000 a month on average.

Though Florida is a tax-friendly state as far as income state taxes are concerned, keep in mind this won’t factor in property taxes, estate taxes or surrounding rising real estate costs. Here are five cities that are becoming unaffordable where housing is concerned.

Gretna 

• Population: 1,208
• Average home value: $92,580
• Average monthly mortgage payment: $552
• Average monthly cost of expenditures: $2,006
• Average monthly cost of living total: $2,557

Campbellton 

• Population: 240
• Average home value: $130,762
• Average monthly mortgage payment: $779
• Average monthly cost of expenditures: $1,836
• Average monthly cost of living total: $2,615

Cottondale 

• Population: 965
• Average home value: $135,082
• Average monthly mortgage payment: $805
• Average monthly cost of expenditures: $1,844
• Average monthly cost of living total: $2,648

Malone 

• Population: 2,162
• Average home value: $136,676
• Average monthly mortgage payment: $814
• Average monthly cost of expenditures: $1,838
• Average monthly cost of living total: $2,653

Chattahoochee

• Population: 2,975
• Average home value: $113,922
• Average monthly mortgage payment: $679
• Average monthly cost of expenditures: $2,016
• Average monthly cost of living total: $2,694

Mortgage payments can be the biggest chunk of your monthly retirement budget. Make sure you research which cities may have higher costs than you previously considered.

Cross City 

• Population: 2,485
• Average home value: $138,766
• Average monthly mortgage payment: $827
• Average monthly cost of expenditures: $1,907
• Average monthly cost of living total: $2,733

Bonifay 

• Population: 2,760
• Average home value: $144,327
• Average monthly mortgage payment: $860
• Average monthly cost of expenditures: $1,894
• Average monthly cost of living total: $2,754

Sneads

• Population: 1,744
• Average home value: $157,692
• Average monthly mortgage payment: $939
• Average monthly cost of expenditures: $1,833
• Average monthly cost of living total: $2,773

Blountstown 

• Population: 3,297
• Average home value: $152,640
• Average monthly mortgage payment: $909
• Average monthly cost of expenditures: $1,872
• Average monthly cost of living total: $2,782

Greenwood

• Population: 713
• Average home value: $165,511
• Average monthly mortgage payment: $986
• Average monthly cost of expenditures: $1,839
• Average monthly cost of living total: $2,825

Whether it’s how rising food costs wrack up your grocery bill or if you just want to have some extra cushion to go to the occasional theme park or even Walt Disney World, necessary and discretionary spending can take a toll on your retirement savings. Some cities in Florida have growing estimated expenses that may push them to the point of unaffordability.

Interlachen

• Population: 1,648
• Average home value: $167,653
• Average monthly mortgage payment: $999
• Average monthly cost of expenditures: $1,843
• Average monthly cost of living total: $2,841

Bascom 

• Population: 123
• Average home value: $172,131
• Average monthly mortgage payment: $1,025
• Average monthly cost of expenditures: $1,838
• Average monthly cost of living total: $2,863

Graceville 

• Population: 2,717
• Average home value: $172,108
• Average monthly mortgage payment: $1,025
• Average monthly cost of expenditures: $1,838
• Average monthly cost of living total: $2,863

Paxton 

• Population: 583
• Average home value: $165,356
• Average monthly mortgage payment: $985
• Average monthly cost of expenditures: $1,913
• Average monthly cost of living total: $2,898

Hosford

• Population: 709
• Average home value: $158,964
• Average monthly mortgage payment: $947
• Average monthly cost of expenditures: $1,953
• Average monthly cost of living total: $2,900

There are so many rising costs it may seem hard to determine where your money is going every month. Knowing what to expect down the line can help you plan accordingly now. Here are five Florida cities where the rising cost of living may be too much for your retirement budget.

Wewahitchka

• Population: 1,668
• Average home value: $185,792
• Average monthly mortgage payment: $1,107
• Average monthly cost of expenditures: $1,822
• Average monthly cost of living total: $2,929

Waldo

• Population: 1,080
• Average home value: $179,189
• Average monthly mortgage payment: $1,068
• Average monthly cost of expenditures: $1,869
• Average monthly cost of living total: $2,937

Grand Ridge 

• Population: 824
• Average home value: $185,213
• Average monthly mortgage payment: $1,103
• Average monthly cost of expenditures: $1,836
• Average monthly cost of living total: $2,940

Century

• Population: 1,952
• Average home value: $186,812
• Average monthly mortgage payment: $1,113
• Average monthly cost of expenditures: $1,834
• Average monthly cost of living total: $2,947

Coleman

• Population: 918
• Average home value: $195,013
• Average monthly mortgage payment: $1,162
• Average monthly cost of expenditures: $1,791
• Average monthly cost of living total: $2,953

Methodology: GOBankingRates analyzed cities across the country to find replacement retirement cities for unaffordable cities. First, GOBankingRates gathered a few factors for each city, including: total population, as sourced from the U.S. Census American Community Survey; the cost of living indexes, as sourced from Sperling’s BestPlaces; the average expenditure costs for residents aged 65 and over, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey; the livability index, as sourced from AreaVibes; the average home value for single-family homes, as sourced from the Zillow Home Value Index; and, by assuming a 10% down payment and using the National Average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. The total monthly cost of living can be calculated by using the average expenditure and the average mortgage costs. All data was collected on and is up to date as of Jul. 8, 2024.