The Florida Housing Market: 10 Cities to Avoid for Homebuyers in 2025

Many individuals seeking budget-friendly real estate options are attracted to Florida, often envisioning a sought-after retirement haven. However, before you leap into action, it’s crucial to evaluate which Florida housing markets might not deliver the quality of life you’re hoping for. Critical factors include insurance costs, mortgage rates, and limited housing inventory.

Highlights You Need to Know

• High Living Costs: Most cities analyzed have monthly living expenses exceeding $3,000.
• Aging Population: Five of the top 10 flagged cities have retirement populations of over 20%.
• Stagnant Home Values: All cities apart from Gretna exhibit average home values significantly below the national average.

Methodology Behind the Findings

GOBankingRates conducted a detailed analysis comparing average single-family home values from September 2023 to September 2024, with data extracted from the Zillow Home Value Index. Additionally, average income information was gathered from the U.S. Census American Community Survey, while the livability index was sourced from AreaVibes. The selected cities demonstrated average home values below national standards and a livability index below 75.

The Cities to Steer Clear Of

1. Palatka

• 2023 Avg. Home Value: $198,268
• 2024 Avg. Home Value: $204,480
• Income: $30,945
• Livability Index: 55
• Overview: Home values are about $155,412 below the national average, making it a challenging market for sellers.

2. East Palatka

• 2023 Avg. Home Value: $200,492
• 2024 Avg. Home Value: $208,144
• Income: $36,625
• Livability Index: 55
• Overview: High insurance premiums coupled with an estimated annual cost of living of $38,270 make it less appealing for homeowners.

3. Crescent City

• 2023 Avg. Home Value: $200,530
• 2024 Avg. Home Value: $213,808
• Income: $35,000
• Livability Index: 61
• Overview: Although affordable, home value appreciation is stagnant, diminishing its attractiveness as an investment.

4. Mayo

• 2023 Avg. Home Value: $226,126
• 2024 Avg. Home Value: $251,138
• Income: $40,511
• Livability Index: 66
• Overview: Proximity to larger cities does not guarantee good home price growth. The increased living cost (approximately $3,512 monthly) also plays a role.

5. Pomona Park

• 2023 Avg. Home Value: $200,530
• 2024 Avg. Home Value: $213,808
• Income: $35,000
• Livability Index: 61
• Overview: Home values are about $146,084 below the national average, rendering it a potentially poor investment choice.

6. Bushnell

• 2023 Avg. Home Value: $286,991
• 2024 Avg. Home Value: $292,014
• Income: $41,700
• Livability Index: 57
• Overview: High insurance premiums in Bushnell coupled with an average monthly mortgage of $1,699 create financial strain for residents.

7. Greenville

• 2023 Avg. Home Value: $81,554
• 2024 Avg. Home Value: $88,887
• Income: $27,419
• Livability Index: 61
• Overview: Limited public transport and high living costs make this area less desirable for budget-conscious buyers.

8. Gretna

• 2023 Avg. Home Value: $190,602
• 2024 Avg. Home Value: $194,588
• Income: $27,296
• Livability Index: 62
• Overview: Low property prices are less beneficial due to a significant difference ($271,005) from the national average home value.

9. Marianna

• 2023 Avg. Home Value: $215,713
• 2024 Avg. Home Value: $223,435
• Income: $48,355
• Livability Index: 61
• Overview: Economic challenges and limited job opportunities make this city less attractive for potential homeowners.

10. Lawtey

• 2023 Avg. Home Value: $254,251
• 2024 Avg. Home Value: $261,718
• Income: $42,314
• Livability Index: 59
• Overview: High poverty rates and medical expenses contribute to a less favorable living situation.

Final Thoughts

While Florida boasts numerous appealing locales, buyers should approach smaller cities with caution. Factors like a high cost of living, stagnant home values, and low livability indices suggest these ten locations may not be wise choices for home investment. Always weigh your options and conduct thorough research before making any decisions.

For further insights on promising real estate markets, check out our additional articles on home investments and retirement strategies!