Out of the 50 states and the District of Columbia that make up the United States, Florida ranks 21st in housing affordability, taking into account both property prices and per capita income. On the other hand, North Port, Tampa, and Lakeland are among the metropolitan areas in the state of Florida that experienced some of the most significant price declines last January.
In 2024, 365,377 homes were sold in Florida, the highest number among all states in the country; the most expensive properties in the state are located in Key West.
The data comes from the market research study “The Least and Most Affordable U.S. States to Buy a Home” by the website TradingPedia, based on median home sale prices between January and December 2024 from real estate broker Redfin. TradingPedia correlated these prices with third-quarter 2024 per capita personal income data from the country’s Bureau of Economic Analysis.
In 2024, property prices in the United States continued to soar to record highs, driven by inflation and sustained demand from prospective buyers and investors. Median property prices are nearly six times higher than average annual incomes, and on top of this, mortgages remained expensive despite three interest rate cuts introduced by the Federal Reserve in recent months.
According to the report, the median home price in the United States reached $428,201 last year, while per capita income stood at $72,741 in the third quarter. This means that the average home costs about six times a person’s annual income.
Michael Fisher of TradingPedia states that “even with the housing affordability crisis plaguing the U.S. real estate market, certain states offer relatively accessible housing alternatives if we look at home prices in relation to personal income.”
Far From the American Dream of Homeownership
Although Californians have to deal with the highest median home sale price in the country ($819,983), Hawaiians face even worse affordability levels, according to the report. Residents of the Aloha State have an average annual income of $70,082, which accounts for just 9.09% of the median home price ($771,350). As a result, homebuyers would have to set aside more than 11 years of income if they choose to buy a home with cash.
At the other end, the cheapest properties per square foot are found in the state of Mississippi, followed by Louisiana, Indiana, Kansas, and West Virginia.
With a per capita personal income of $70,581 (the 22nd highest in the country) and a median home price of $411,658, Florida has a property price-to-income ratio of 5.83. This makes it the 21st most affordable state to buy a home. In 2024, 365,377 homes were sold in the state, the highest number among all states in the country. Per capita sales are also the highest, with 15.6 sales per 1,000 residents.
The per capita personal income in the state of Florida is $70,581, which is approximately 17.15% of the state’s median home price ($411,658). Within Florida, the places where prices fell the most in January 2025 were North Port (9.66% lower than in January 2024), Tampa (4.05% lower), and Lakeland (3.13% lower).
Focusing on the 31 metropolitan areas in Florida listed by Redfin, the research found that the most expensive homes in the state are located in Key West. The median home price there in January was $1,075,000, a decline of 11.16% compared to the same month in 2024. However, only 96 homes were sold there during the month. The most popular real estate markets, on the other hand, are Tampa (median price of $355,000; 3,468 homes sold in January 2025) and Orlando ($400,000; 2,329 homes sold in January 2025).
Based on median home prices and annual incomes, Iowa emerges as the most affordable housing market in the U.S. The median sale price of all residential properties rose slightly from 2023 to $234,708, the lowest rate in the country.
These are the most expensive metropolitan areas in Florida, according to the median home sale price in January 2025:
– Key West ($1,075,000), 96 homes sold
– Naples ($699,608), 626 homes sold
– Miami ($560,000), 1,439 homes sold
– West Palm Beach ($520,000), 1,501 homes sold
– Fort Lauderdale ($460,000), 1,574 homes sold
– Crestview ($440,000), 441 homes sold
– North Port ($423,000), 1,505 homes sold
– Orlando ($400,000), 2,329 homes sold
– Port St. Lucie ($385,000), 579 homes sold
– Cape Coral ($385,000), 1,113 homes sold
To access the full TradingPedia report, click here.
