Florida TaxWatch said in a new report published on Thursday that Florida’s rising housing, health care and property insurance costs are making the state increasingly difficult for residents to afford, even as broader inflation pressures have cooled from their 2022 peak.
In its report, “Cost of Living in Florida: A Mid-Decade Check-In,” the nonprofit government watchdog said Florida’s status as an economic powerhouse does not necessarily translate into affordability for average households. The report noted that Florida ranked third nationally in population and civilian labor force at the end of 2025 and fourth in GDP, but said those measures do not capture the financial strain residents face in covering everyday expenses.
If Florida was its own country, it would have the 15th largest economy in the world. It is ranked 3rd in population and civilian labor force at the end of 2025 and 4th in GDP in the nation. Florida’s position as an economic powerhouse is charged by its strong workforce and economic hubs. While impressive, these gross output measures are not very accurate indicators of affordability for the average resident,” said Florida TaxWatch President and CEO Jeff Kottkamp.
Florida ranked as the 18th most expensive state in the nation in 2025, according to the Cost of Living Index cited in the report, and the fourth most expensive in the South, behind Maryland, Delaware and Virginia. The report also said Florida’s cost increases have accelerated sharply this decade, with the state’s implicit regional price deflator rising an average of 5.8% annually in the 2020s, compared with 1.3% in the 2010s.
Housing was identified as the biggest driver of affordability pressures. Florida TaxWatch said housing costs in the Miami and Tampa metro areas have risen much faster than other major spending categories. The report also said Florida has had the highest residential home insurance premiums in the nation since 2020, averaging $2,794 annually through the third quarter of 2025, while average yearly premiums have increased 63% since 2020.
Rent has also climbed sharply. The report said Florida’s average asking rent rose from $1,445 in 2020 to $2,208 in 2025, pushing the state from 16th to sixth nationally. It also pointed to rising childcare, utility and grocery costs as adding to household strain.
Florida TaxWatch said that while price increases have slowed since 2022, state policymakers should continue prioritizing housing, health care and property insurance affordability.
