Rent vs buy in Florida
Using current figures over 7 years, buying wins in 57 of the 63 cities with 50,000+ people, renting wins in 5, and 1 comes out a toss-up.
Renting or buying in Florida's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Jacksonville | Buy | buying wins by $27k | year 5 | $284,832 | $1,589 |
| Fort Lauderdale | Buy | buying wins by $25k | year 6 | $509,743 | $2,697 |
| Pembroke Pines | Buy | buying wins by $22k | year 6 | $486,731 | $2,570 |
| West Palm Beach | Buy | buying wins by $38k | year 5 | $404,711 | $2,365 |
| Lakeland | Buy | buying wins by $26k | year 5 | $309,422 | $1,687 |
| Miami Gardens | Buy | buying wins by $31k | year 5 | $474,495 | $2,521 |
| Davie | Rent | renting wins by $8k | year 8 | $515,457 | $2,432 |
| Palm Coast | Buy | buying wins by $32k | year 5 | $343,894 | $1,897 |
| Boca Raton | Buy | buying wins by $20k | year 6 | $580,267 | $2,967 |
| Plantation | Buy | buying wins by $8k | year 7 | $492,003 | $2,466 |
| North Port | Buy | buying wins by $48k | year 4 | $303,227 | $1,937 |
| Homestead | Buy | buying wins by $30k | year 5 | $437,198 | $2,447 |
| Miami Beach | Buy | buying wins by $32k | year 5 | $530,649 | $2,750 |
| Tamarac | Buy | buying wins by $67k | year 3 | $291,266 | $2,121 |
| Sanford | Buy | buying wins by $31k | year 5 | $339,925 | $1,821 |
| Wellington | Buy | buying wins by $60k | year 5 | $661,404 | $3,808 |
| Winter Haven | Buy | buying wins by $39k | year 4 | $271,922 | $1,686 |
| Pinellas Park | Buy | buying wins by $68k | year 3 | $300,743 | $2,077 |
Sources: Zillow Home Value and Observed Rent indexes. The verdicts come from our rent vs buy method run with 20% down and a 7-year period.
What we think of Florida
Across most of Florida, buying comes out ahead of renting, and it wins in 57 of the state's 63 largest cities over a 7-year period. Renting comes out ahead in just 5 cities, and 1 is even. A typical home in Port St. Lucie costs you $384,099, and rent runs $2,356 a month. You'll break even in year 4 and come out $48k ahead. St. Petersburg reaches break-even in year 4 as well, gaining you $41k on a $351,862 home with rent of $2,039.
Owning comes out ahead in both pricey and cheaper cities, if you stay there 5 or 6 years. Rent for a $583,705 home in Miami runs $2,965 a month. In year 6 you break even, and you finish $27k ahead. In cheaper Jacksonville, the home price is $284,832 and the rent is $1,589. Here you break even in year 5 and gain $27k.
Statewide numbers show why buying pays off for you. The typical home price is $375k, with prices up 8.9% a year over 10 years, ahead of the 5.4% a year pace over the long run. Your property tax comes to 0.76%, while the rate across the US is 0.94%. Homeowners insurance costs more: $2,044 a year for you, against $1,308 nationwide. The median monthly rent is $1,669, compared with $1,413 nationwide. Just 32% of households here rent, against 35% in the US.
Our take: buying in Florida is what we recommend if you'll stay for 4 to 6 years. The steep insurance bill is beaten by high rents and fast price growth, so rent only if your move comes sooner.