For years, Florida sold itself as the affordable alternative to New York.
Today, that pitch is getting harder to make.
The Palm Beach-Fort Lauderdale-Miami metro area now has a higher overall cost of living than the New York City metro area for the first time, according to a Bloomberg analysis of new data from the U.S. Bureau of Economic Analysis.
The region now ranks as the second-most expensive major metro area in the country, behind only the San Francisco Bay Area.
The biggest reason? Housing.
Home prices across the Palm Beach-Fort Lauderdale-Miami metro have soared 79% since the pandemic, while consumer prices have climbed 36% since 2019 — the second-fastest inflation increase among major U.S. markets, trailing only Tampa.
The lack of a state income tax still attracts newcomers, but many quickly discover the savings disappear elsewhere.
Florida homeowners pay an average of $8,292 a year for property insurance — the highest in the nation and about four times what many homeowners pay in New York. Add in rising property taxes, HOA fees, condo assessments and flood-related costs, and owning a home has become significantly more expensive.
Housing costs in the Palm Beach-Fort Lauderdale-Miami metro now sit 55.6% above the national average, compared with 48.6% in metropolitan New York.
Even everyday expenses are climbing. The average restaurant bill in the region is now about $94 per person, compared with roughly $79 in New York City.
Adding to the squeeze, the typical household income in the metro area remains about $1,000 below the national median, making it increasingly difficult for many residents to keep pace with rising costs.
Florida continues to gain new residents, but the pandemic migration boom helped drive home prices and rents to record levels across Palm Beach, Broward and Miami-Dade counties.
There may be some relief ahead. Florida voters will decide in November 2026 whether to expand the state’s homestead exemption, a constitutional amendment backed by Gov. Ron DeSantis and the Legislature that could lower property taxes for eligible homeowners beginning in 2027 if approved by at least 60% of voters.
Florida still offers warm weather, world-class beaches and no state income tax.
What it no longer offers is a convincing argument that it’s cheaper than New York. According to the latest federal data, only the San Francisco Bay Area is now more expensive than the Palm Beach-Fort Lauderdale-Miami metro area.
