A new report from Florida TaxWatch confirms what many residents have been feeling at the checkout line and when opening their mail: Florida is getting significantly more expensive, and the spike is happening faster than in neighboring states.
The mid-decade check-in, titled “Cost of Living in Florida,” reveals a mounting affordability crisis driven by skyrocketing insurance premiums and rent hikes that have outpaced nearly the entire country.
The data paints a stark picture of a shifting demographic. Despite Florida’s massive economy—which would rank 15th in the world if it were its own nation—the average resident is struggling to keep up with the basics.
According to Florida TaxWatch President and CEO Jeff Kottkamp, nearly 90 percent of people in the state are worried about inflation, and roughly half are considering leaving Florida altogether because they can no longer afford to stay.
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Housing remains the primary pain point for most households. Since 2020, Florida has held the unenviable title of having the highest residential home insurance premiums in the United States.
By the third quarter of 2025, the average yearly bill reached $2,794, marking a 63 percent increase in just five years. Renters are feeling the squeeze as well; Florida’s average asking rent jumped from the 16th highest in the nation in 2020 to the 6th highest by 2025.
“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,” Kottkamp said.
The report also highlights that the financial pressure extends far beyond the front door. Costs for childcare, municipal utilities, and grocery staples have all climbed to levels far exceeding the trends seen in the 2010s. While there is a slight silver lining—price increases peaked around 2022 and have since begun to slow—they remain well above pre-2020 levels.
Florida’s lack of a personal income tax continues to offer some relief compared to other states, but the report suggests that tax policy alone isn’t enough to offset the rising tide of daily expenses.
As the state enters the latter half of the decade, the findings indicate that state-level focus on property insurance, health care, and housing remains critical to preventing more residents from living paycheck-to-paycheck.
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