Many people looking to invest in affordable real estate markets head to Florida in search of inexpensive home prices — especially for retirement destinations. However, before you start packing your bags and heading to the Sunshine State, you should know certain Florida housing markets may not offer them the best quality of life when you consider factors such as insurance costs, mortgage rates or lack of housing inventory in general.
To find out which Florida housing markets buyers should avoid based on housing affordability, interest rates and more, GOBankingRates analyzed the average single-family home value from September 2023 to September 2024, sourced from the Zillow Home Value Index. The average income was also sourced from the U.S. Census American Community Survey, and the liability index was sourced from AreaVibes.
Here are some key takeaways:
Five of the top 10 cities listed below have a retirement population of 20% or higher.
Every city listed except for Gretna has an average monthly cost of living that’s more than $3,000.
The highest median income from these 10 cities is in East Palatka at $63,047.
To focus on Florida cities with bad housing markets, qualifying cities had to have an average house value below the national average, and the livability index had to be below 75. In ascending order, real estate experts and chief economists alike would advise buyers to avoid shopping for homes in these 10 Florida cities.
September 2023 average home value: $198,268
September 2024 average home value: $204,480
Year-over-year change (2023 to 2024): $6,212
Average income: $30,945
Livability index: 55
Both Palatka and East Palatka suffer from real estate woes for both buyers and sellers. The difference for Palatka’s home value from the national average is about -$155,412, which goes to -$80,395 in East Palatka. That’s no friend to anyone trying to not take a bath on their home sale.
The good news is that not every real estate transaction needs to end in a bidding war. The bad news is, not every house value appreciates in Crescent City. This, compounded with high insurance premiums and an estimated total cost of living of $38,270 per year, takes this city out of the running for good investment ideas.
September 2023 average home value: $226,126
September 2024 average home value: $251,138
Year-over-year change (2023 to 2024): $25,012
Average income: $40,511
Livability index: 66
Mayo comes with the convenience of proximity to big cities like Gainesville, Tallahassee and Jacksonville, but that doesn’t necessarily mean it will work for your home price growth. It also has an average monthly cost of living of about $3,512.
September 2023 average home value: $200,530
September 2024 average home value: $213,808
Year-over-year change (2023 to 2024): $13,278
Average income: $35,000
Livability index: 61
Though it sounds like an idyllic place to move whether it’s for a new start or a place to retire, Pomona Park isn’t all it’s cracked up to be when it comes to Florida real estate. The difference from the national average for home value is about — $146,084, which could make buying a home here a poor investment.
September 2023 average home value: $286,991
September 2024 average home value: $292,014
Year-over-year change (2023 to 2024): $5,023
Average income: $41,700
Livability index: 57
Bushnell, like many cities in Florida, comes with high insurance premiums and other expenses. It has an average monthly mortgage of about $1,699 and an annual average cost of living of $43,717.
September 2023 average home value: $182,215
September 2024 average home value: $187,971
Year-over-year change (2023 to 2024): $5,756
Average income: $52,204
Livability index: 56
With limited transportation as well as high living and home insurance costs, Greenville might not be the best place for your budget. It has an average monthly expenditure cost of $2,038 and there is a -$171,921 difference in home value from the national average.
September 2023 average home value: $81,554
September 2024 average home value: $88,887
Year-over-year change (2023 to 2024): $7,333
Average income: $27,419
Livability index: 61
Gretna comes with lower property prices, but it also has a lower rate of homeownership. Buying a home may be more in your price range but you could take a bath when trying to sell it as there is a -$271,005 difference from the national average home value.
September 2023 average home value: $190,602
September 2024 average home value: $194,588
Year-over-year change (2023 to 2024): $3,986
Average income: $27,296
Livability index: 62
Marianna suffers from a slightly poor economy as well as fewer career prospects. These facts, compounded by the total cost of living of around $36,400 annually, may mean you want to avoid moving here and buying a home.
September 2023 average home value: $215,713
September 2024 average home value: $223,435
Year-over-year change (2023 to 2024): $7,723
Average income: $48,355
Livability index: 61
Florida has a lot to offer but some smaller cities, like Lawtey, have higher poverty rates and medical bills than others. It has an average monthly expendure cost estimated to be near $2,043 and an annual total cost of living of about $40,116.
September 2023 average home value: $254,251
September 2024 average home value: $261,718
Year-over-year change (2023 to 2024): $7,467
Average income: $42,314
Livability index: 59
Belle Glade has an average monthly expenditure cost of $2,220 and a total cost of living to be estimated at about $44,917 a year. If you are considering buying a home here, it’s good to know that the average monthly mortgage payment is about $1,523, which given the other factors, might not be the best for your financial situation.
Methodology: For this study, GOBankingRates analyzed cities across Florida to find the housing markets you should avoid in 2025. First, GOBankingRates found data for the cities in Florida including; total population, population ages 65 and over, total households, and household median income all sourced from the U.S. Census American Community Survey. Using this data, the percentage of the population ages 65 and over can be calculated. The cost-of-living indexes were sourced from Sperlings BestPlaces and include the grocery, healthcare, housing, utilities, transportation, and miscellaneous cost-of-living indexes. Using the cost-of-living indexes for grocery, healthcare, utilities, transportation, and miscellaneous and the national average expenditure costs, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each location can be calculated. The livability index was sourced from AreaVibes for each location, and places with a livability of 75 and above were removed as they represent places of higher quality of life. The average single-family home value was sourced from Zillow Home Value Index for Sept. 2024 and Sept. 2023 as well as the national average from Sept. 2024. The one-year difference was calculated as well as the difference from the national average. Using the average single-family home value, assuming a 10% down payment, and using the most recent national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated. Using the average mortgage and average expenditure costs, the average total monthly and annual cost of living can be calculated. The household median income was scored and weighted at 1.00, the difference from the national average home value was scored and weighted at 2.00, the total cost of living was scored and weighted at 2.00, the livability index was scored and weighted at 2.00, and the one-year change in home value was scored and weighted at 3.00. All the scores were summed and sorted to show the housing markets to avoid in Florida. All data was collected on and is up to date as of November 1, 2024.
