The Cost of Living in the Florida Keys: A Comprehensive Guide
Living in the Florida Keys can present a unique set of challenges, with a cost of living that often varies based on individual choices. These charming islands, known for their natural beauty and year-round comfortable weather, come with a price tag that includes higher expenses than many other locations.
Gas Prices and Travel
The cost of maintaining a vehicle in the Florida Keys is a significant factor in the overall cost of living. Gas prices tend to be comparable to those in Miami, particularly in Key Largo. However, as you progress further south towards Key West, you'll notice a noticeable increase in gas prices, with residents paying an additional 30–40 cents per gallon more.
Another challenge arises due to the layout of the Keys. Many jobs, services, and retail outlets are not conveniently located within the islands themselves. This necessitates extensive travel via car, which can quickly add up, as the distances can be considerable. For instance, getting to Miami or Fort Lauderdale for shopping can take about 4 hours one way, and the round-trip with tolls and gas costs could easily add up to 2.5 hours, with a minimum of 75 minutes of driving time at an average of 25 mpg.
Insurance Costs
Home-related insurance in the Florida Keys is notoriously expensive. If you have a mortgage, you are required to carry both wind and flood insurance, which are often perceived as less useful due to their high deductibles and limited coverage. Moving to the Keys from Maryland, for instance, I saw my home-related insurance costs increase by a factor of 10.
In terms of health insurance, the situation is even more challenging. Compared to Miami, health insurance is significantly more expensive, with fewer options available for coverage. This can be a concerning factor for those who are not properly insured.
Groceries and Dining
Shopping for groceries in the Florida Keys is another significant expense. Due to the isolated nature of the Keys, most food must be transported in from the mainland, which drives up the cost. Additionally, dining out can also be more costly, as restaurants need to cover their higher operating costs.
On average, groceries in the Keys are likely to be 10-20% more expensive than in urban areas. Similarly, eating at a restaurant can cost more due to the higher operating expenses and premium ingredients used to cater to the island's lifestyle.
Real Estate
The real estate market in the Florida Keys is one of the most expensive in the country. The average sale price for homes of all types in the Keys in 2019 was $701,352. While this might seem high, it's important to note what you get for that price. In many parts of the country, $701,352 would buy a significantly larger home or property with more amenities.
The cost of real estate is driven by the lack of dense population allowing major retailers to establish themselves in the Keys. The only big box stores present are K-Mart, Home Depot, and a small Sears in Key West. This means that for essential shopping, residents either venture to Miami-Ft. Lauderdale with extensive shopping lists or buy on the internet, which can add to the overall cost.
The Choice to Live in the Keys
Housing the cost savings of the last decades in key tenets of our lives, such as insurance and groceries, do not make it easy. Given these high costs, the trade-offs for living in the Florida Keys are numerous. Despite the high cost of living, many residents choose to make these sacrifices due to the natural beauty, year-round pleasant weather, and outstanding access to water activities.
The vibrant community of Keys residents also plays a crucial role in the decision to live here. The tight-knit and resilient community has helped to keep the Keys a desirable place to live. Additionally, there are some less tangible benefits, such as the sense of community, privacy, and charming lifestyle that come with island living. However, it's important to weigh these factors against the costs before making the decision to live in the Florida Keys.
Contact a local real estate agent or do extensive research to fully understand all aspects of the cost of living in the Florida Keys, and consult with a financial advisor to assess whether the cost and benefits align with your personal and financial goals.