Renting vs Buying in Florida (2025): Which Saves You More Money?
February 9, 2025
5 Minutes
The median home price in Florida is $435,000, meaning with a 20% down payment and a 6.5% interest rate, your monthly mortgage (including taxes & insurance) could be around $2,500 – $2,800.
Meanwhile, the average rent in Florida is $2,300 – $2,600/month, money that never comes back to you.
Florida is a state where real estate is booming. With a growing job market, no state income tax, and millions moving here annually, owning a home could be your smartest financial move. But is buying better than renting?
Let's find out in this blog.
Florida Housing Costs: Renting vs. Buying
Housing prices in Florida keep climbing and choosing between renting and buying is more important than ever. Let’s break down the costs so you can decide what works best for you.
Renting in Florida
- Rent increases: Expect 5% – 10% hikes every year
- Upfront costs: First and last month’s rent plus a security deposit ($5,000–$7,000 total)
- Average monthly rent: $2,300–$2,500
Buying a Home in Florida
- Median home price: $425,000 – $450,000 (assuming a 20% down payment)
- Mortgage rate: 6.5% (30-year fixed loan)
- Monthly mortgage payment: Around $2,150
- Property taxes & insurance: $500–$800 per month
Key takeaway: Renting costs less upfront and offers flexibility, but homeownership provides long-term financial stability and equity growth. If you plan to stay in Florida for five years or more, buying could be the smarter choice.
Save Big when you Buy a Home with reAlpha!
Discover how our all-in-one homebuying platform can increase your buying power and put money back in your pocket. Start your journey today!
Renting vs. Buying Cost Breakup
| Category | Renting in Florida | Buying a Home in Florida |
|---|---|---|
| Average Monthly Payment | $2,300 - $2,500 | $2,650 - $2,950 (Includes mortgage, taxes & insurance) |
| Annual Increases | 5 - 10% | Fixed mortgage payment (if 30-year fixed rate loan) |
| Upfront Costs | 1st & last month’s rent + security deposit ($5,000 - $7,000) | 20% down payment ($85,000 - $90,000) + closing costs (~$8,000 - $12,000) |
| Property Taxes & Insurance | None (covered by landlord) | $500 - $800/month |
| Maintenance & Repairs | Landlord is responsible | Homeowner pays (estimated $2,000 - $4,000 per year) |
Cost Analysis for Renting Vs. Buying a House in Major Florida Cities
How do you decide if you have enough to live in Florida? After checking out the monthly costs of renting or buying, you should know the cost of living in a tourist state like Florida. Florida’s cost of living varies by region.
| City | Median Home Price (2025) | Estimated Mortgage (Incl. Taxes & Insurance) | Average Rent (2025) | Verdict |
|---|---|---|---|---|
| Jacksonville | $380,000 | $2,300/month | $2,100/month | Better to Buy if staying long-term |
| Miami | $550,000 | $3,400/month | $3,000/month | Renting is more affordable, but buying offers long-term stability |
| Orlando | $410,000 | $2,600/month | $2,400/month | Buying is a good option for stability |
| Tampa | $420,000 | $2,700/month | $2,500/month | It is a very close comparison, depending on financial goals |
| St. Petersburg | $400,000 | $2,550/month | $2,400/month | Buying is slightly better if staying 5+ years |
Key Takeaways from the Table
1. Buying in cities like Jacksonville, Orlando, and St. Petersburg is better. Mortgage payments are close to rent prices.
2. It’s better to rent in expensive cities like Miami (Unless you are an investor).
3. Tampa is toss up between rent v/s buy - decide based on your long-term goals.
Pros and Cons of Renting in Florida
The biggest reasons to rent are flexibility and lower upfront costs. Not sure how long you want to live in FL? You should rent. But if you want to build equity - buying is the way to go.
Save Big when you Buy a Home with reAlpha!
Discover how our all-in-one homebuying platform can increase your buying power and put money back in your pocket. Start your journey today!
| Pros of Renting in Florida | Cons of Renting in Florida |
|---|---|
| Lower upfront costs: Renters only need to pay a security deposit and the first month's rent, which is much cheaper than a down payment. | No equity or ownership: Rent payments do not contribute to property ownership or long-term wealth. |
| No maintenance costs: The landlord is responsible for repairs, maintenance, and property taxes. | Rent increases yearly: Florida’s rent prices have risen 5-10% per year, making long-term renting expensive. |
| Flexibility to move: Renting allows easy relocation without the hassle of selling a home. This is great for students or short-term residents. | No control over property: Renters cannot renovate or personalize their space. |
| No property taxes or insurance: Homeowners pay thousands per year in taxes and insurance, while renters avoid these costs. | Eviction risk: Landlords can choose not to renew leases, forcing tenants to move unexpectedly. |
| Access to amenities: Many Florida rental apartments offer pools, gyms, and clubhouses at no additional cost. | Less stability: Moving frequently can be stressful, and rent prices in desirable areas like Miami or Orlando are unpredictable. |
Pros and Cons of Buying in Florida
Buying property in Florida is a great long-term investment. Consider if you have financial stability and the cash for upfront costs, such as agent fees.
P.S: You can now save 3% of the buyer agent fees with reAlpha.
| Pros of Buying in FL | Cons of Buying in FL |
|---|---|
| Builds equity: Homeownership allows you to invest in property instead of paying rent. Over time, home values in Florida have increased, and your wealth has increased | High upfront costs: Buyers must cover a down payment (typically 10-20%), closing costs, and mortgage fees. |
| Predictable monthly payments: A fixed-rate mortgage keeps payments stable, unlike rent, which increases annually. | Home maintenance responsibility: Homeowners pay for repairs, landscaping, and maintenance, which can be expensive. |
| Potential tax benefits: Homeowners can deduct mortgage interest and property taxes, reducing their overall tax burden. | Home values fluctuate: While Florida’s housing market is strong, economic downturns can lower home values. |
| Freedom to renovate: Owners can customize and upgrade their homes as they please. | Higher insurance costs: Florida homeowners pay higher insurance rates due to hurricanes and floods. |
| Long-term financial stability: A homeowner who buys at $425,000 with a fixed mortgage will still pay the same monthly mortgage 20 years later, while rent keeps rising. | Difficult to relocate: Selling a home takes time and involves closing costs and realtor fees. |
Which Option Is Best for You?
Renting might seem cheaper in the short term, but over time, it’s a financial trap. Let’s do the math: The average rent in Florida is $2,200/month. That’s $26,400 per year Gone, $132,000 in just five years with zero return.
Compare that to homeownership, where each mortgage payment builds your equity. Even with a $350,000 home purchase (a common price in cities like Jacksonville and Orlando), your mortgage could be around $2,100/month, less than rent, while building $100,000+ in equity over five years.
The biggest hurdle? Upfront costs. But smart buyers know how to reduce expenses. Platforms like reAlpha skip the agent fees by 3%, saving you $10,500+ on a $350,000 home, money that stays in your pocket instead of vanishing into rent. With this money, you can easily pay off a few month's mortgage in advance.
FAQ
Is it better to rent or buy a house?
If you plan to stay in Florida long-term and have the financial means, buying is often the better choice. If you need flexibility or aren't ready for upfront costs, renting may be the smarter short-term option.
What Are the Pros of Buying a House?
- Builds equity: Monthly mortgage payments increase ownership and long-term wealth. Florida home values keep rising.
- Locks in costs: Fixed-rate mortgages keep payments stable. Rent increases by 5-10% per year.
- Offers tax benefits: Homeowners deduct mortgage interest and property taxes, reducing costs.
- Allows customization: Owners renovate and upgrade without restrictions.
- Provides investment growth: Florida’s real estate market remains strong. Property values appreciate over time.
What is the average rent in Florida?
Median rents in Florida are between $2,300 - $2,600/month. Rent varies based on the location. Cities like Miami attract tourists and that’s why there is a higher demand for short-term rentals. On the other hand, it’s cheaper to rent in a place like Jacksonville.
Save Big when you Buy a Home with reAlpha!
Discover how our all-in-one homebuying platform can increase your buying power and put money back in your pocket. Start your journey today!
Get the latest market trends, homebuying tips, and insider updates—straight to your inbox. No fluff, just the good stuff.
Article by
As a great communicator with excellent negotiation skills, I focus more on establishing unbreakable ties between my clients, as opposed to just helping them achieve their real estate dreams. As a representative of both buyers and sellers, I understand how to lead a transaction process to ensure that the needs of both are met. My track record speaks for itself. Since I ventured into the industry in 2013 as a realtor, I have not only helped many buyers land perfect homes, but I have also assisted tons of owners and investors build wealth.