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10 Hidden Living Costs in Florida That Could Wreck Your Retirement Plan

There are a lot of things to love about living in Florida, but the above-average cost of these items isn't among them.

By Michelle Smith

Edited by Jessica Gibson

Updated Dec. 4, 2025

Whether you've recently retired to Florida or you're a lifelong resident, you know there is plenty to enjoy about life in the Sunshine State.

However, Florida's above-average cost of living can make it harder to keep more money in your bank account. That is especially true when it comes to these 10 crucial costs.

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Homeownership

Housing costs in Florida are above the nationwide average. The average home value in Florida is $374,697 according to the most recent data from Zillow. That's nearly $15,000 higher than the national average of $360,727.

It's also notably higher than the average cost of a house in the neighboring states of Georgia ($329,538) and Alabama ($231,003). So, if you are thinking of spending your golden years in Florida, housing is one area where you might struggle to stretch your retirement savings.

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Rent

Homeowners aren't the only ones paying above-average prices for the roof over their heads.

While the cost of rent is lower now than it was last year, the average expense remains $2,350 a month in Florida, according to Zillow. That is about 17.5% above the national average.

Electricity

Luckily for warm-weather lovers, there's little chance of snow in Florida. But all that sunshine and heat can take a toll on your budget, especially if you spend most of your time inside with the air conditioner running.

According to data compiled by PowerOutage.us, Floridians pay an average of $163 per month for electricity alone.

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Homeowners insurance

The cost of homeowners insurance in Florida is dramatically higher than in other parts of the country.

You can expect to spend an average of $5,838 on homeowners insurance in Florida per year. That is a shocking $3,414 higher than the national average, according to Bankrate.

Some say the higher insurance costs are due to devastating hurricanes and tropical storms. However, the Insurance Information Institute says Florida's high costs are due to widespread fraud and litigation.

Car insurance

If you plan to own and operate a car in Florida, you will need automobile insurance, which costs more on average in Florida than in other states.

While the national average cost of car insurance is $2,697, Florida residents pay an average of $3,884. However, in several Florida cities, you may pay much more than that, according to our best car insurance page and analysis.

Health insurance premiums

On top of paying more for homeowners and car insurance, Floridians also pay more in health insurance premiums.

Per data from the Kaiser Family Foundation, households with employer-supported insurance pay an average annual premium of $8,831 for family coverage, the highest in the nation.

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Medigap insurance plans

Medigap health insurance plans cover gaps in traditional Medicare coverage. Thanks in large part to its popularity among retirees, Florida has a high percentage of Medicare enrollees.

The demand for Medigap coverage in Florida means residents often pay above-average prices for a policy.

Gas

After a rapid price increase at Florida's pumps a year ago, the average cost of gas in the state dropped to $3.012 per gallon. However, Florida's gas prices remain among the highest in the country.

In other words, depending on the month, Florida's gas prices can be among the highest in the nation, or they can be perfectly average. The fluctuating prices can make it hard to budget for transportation in Florida.

Groceries

Individual Floridians spend an average of $120 per week on groceries. That makes Florida's groceries the sixteenth-priciest in the nation.

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Golf

In fairness to Florida, golfing doesn't necessarily cost more on average there than elsewhere. But Florida has more than 1,000 golf courses, and you could spend a minimum of $35 to $75 to book a round, with top-tier courses costing well over $100.

But there's good news for Florida residents who love to golf but hate wasting money: Florida residents often get discounted fees compared to out-of-state players, which should help you save money.

Bottom line

Whether you dream of a stress-free retirement in Florida or want to move to the state at a younger age, beware of some of the higher costs in the Sunshine State.

With a little forethought and some careful math, your life in Florida can still be sunshine and rainbows.

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