Cost of Living in Miami: A Guide for Homebuyers
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
If you’re considering a move to Miami, understanding the cost of living in the Magic City can help you make plans more confidently.
In this guide, we break down the cost of living in Miami, from housing expenses to food and healthcare costs. We’ll provide data from local cost of living index and comparison tools, and look at how Miami ranks for livability compared to other U.S. cities.
We’ll also share a handy set of additional online resources to measure and compare cost of living and expenses in other Florida cities.
Yes, You Can Buy Before You Sell. Why Move Twice?
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
What makes up the ‘cost of living’ in Miami?
When you’re planning to live in a new city, the cost of living there will be a combination of expenses required to maintain your desired lifestyle. Cambridge Dictionary defines cost of living as “the amount of money that people need to spend in order to buy basic goods or services such as food, clothes, and a place to live.”
This overall cost can vary significantly based on location, even within Florida. But the living expenses you’ll pay for typically include the following categories:
- Housing (mortgage/rent)
- Energy (utility costs)
- Food (groceries)
- Transportation (vehicle or transit systems)
- Healthcare (doctors, hospitals, dentists, etc.)
However, the costs often extend beyond these basics to cover other expenses, such as:
- Clothing
- Education
- Childcare
- Entertainment
These elements, when combined, establish the core costs associated with a particular way of living. However, the standard of living you achieve is largely influenced by your income and debts and how the dollar amounts compare to the costs of basic needs in your location or, in this case, the Miami community where you might want to live.
Let’s take a quick look at some ways you can compare your current living cost with what you might experience if you move to Miami.
What’s a Miami cost of living index (CLI)?
A cost of living index (CLI) monitors how much these basic expenses go up or down over time in different states, cities, or regions. They provide a way to compare the price of maintaining a particular standard of living.
The CLI for a city like Miami is calculated by assessing the price of essential goods and services, such as housing, food, transportation, and healthcare, in different areas.
A local index is typically standardized, with a base city assigned a baseline index value (usually set at 100). Other cities are then compared against this benchmark. For example, a Florida community with a CLI of 125 would signify that living there is 25% more expensive than the base location, while an index of 75 indicates it’s 25% less expensive.
A cost of living index will typically break down and score each basic expense by category. Here are separate scores for Miami from the AXIOS Miami Cost of Living Index:
- Overall CLI score: 115.3
- Housing: 145.3
- Healthcare: 96.6
- Transportation: 102.6
- Misc. goods and services: 104.8
- Grocery items: 103.8
- Utilities: 102.9
Data source used: C2ER Council for Economic and Social Research
According to AXIOS, Miami has a higher cost of living than the national average.
Cost perspective
While Miami’s overall cost of living is 15.3 points higher than the baseline established for the 269 cities included in the index, it’s well below the costs to live in Seattle, which — with a CLI score of 145.7) is 45.7 points higher than the base of other scored communities.
Additional cost of living data for Miami
Now let’s look at some real-world dollar amounts collected by various cost of living sources. Here’s more of what you can expect if you move to Miami.
Expatistan, a cost-of-living data site, provides these monthly cost estimates for Miami:
- Family of four estimated monthly costs: $7,769
- Single person estimated monthly costs: $4,821
Best Places lists these housing estimates on their Miami cost of living pages:
Miami housing data
| Number of homes | 211,084 |
| Median home age | 46 years |
| Median home cost | $524,600 |
| Home appreciation rate (last 12 months) | 25.1% |
| Home appreciation rate (last 5 years) | 73.5% |
| Home appreciation rate (last 10 years) | 179% |
| Property tax rate (per $1,000 of value) | $9.18 |
| Property taxes paid (average home) | $3,389 |
| Homes owned | 25.8% |
| Housing vacant | 14% |
| Homes rented | 60.2% |
Source: BestPlaces.com
Miami tax rates
- State individual income tax rate: Florida does not have a state individual income tax
- State sales tax rate: 6%
- Miami sales tax rate: 7%
- Effective property tax rate (percentage of home value): 0.86%
How does Miami rank for livability?
Along with the cost of living, you might be curious how Miami ranks as far as livability or quality of life. According to the AARP Livability Index in the U.S., Miami has an above-average quality of life score of 56.
For their livability index, AARP separates cities into one of four size categories, Very Large, Large, Midsize, and Small. Miami did especially well in the “neighborhood” (proximity and security) category.
The index then provides an overall score between 0-100 (higher is better), based on rankings from seven categories:
- Overall Livability Score: 56
- Housing (affordability and access): 62
- Neighborhood (proximity and security): 68
- Transportation (safety and convenience): 66
- Environment (clean air and water): 48
- Health (prevention, access, and quality): 58
- Engagement (civic and social involvement): 53
- Opportunity (inclusion and possibilities): 35
For perspective, the highest-ranked city scores in each category were:
- Very Large: San Francisco, 66
- Large: Madison, Wisconsin, 67
- Mid-size: Portland Main, 68
- Small: Aspen, Colorado, 73
No city earned a perfect score of 100. You can learn more about this livability index on AARP’s methodology page.
Check your current city’s livability score
AARP provides a Livability Index Search Page where it scores communities and even neighborhoods across the country for services and amenities that impact your life. You can check your current city score or others where you might like to live near Miami. The livability index Community Finder tool allows you to filter by location, community size, livability measures, and other features, such as state and local plans to create age-friendly communities.
Additional cost of living indexes
Here are some cost of living index links to research additional Florida living expenses:
- Statista: Provides free access to many basic statistics. Paid subscriptions are available for more detailed information about Florida communities.
- ACCRA (C2ER): Maintained by the Council for Community and Economic Research. This is a paid service that maintains one of the largest databases of cost-of-living metrics for Miami and other Florida cities.
- World Population Review CLI page: This website provides a free search-by-state tool at the bottom of its Cost of Living Index page.
- Numbeo: This crowd-sourced CLI promotes itself as “the world’s largest database of user-contributed data about cities and countries worldwide.” This service can show you user-provided insights such as the cost of an inexpensive restaurant in Miami or the perceived presence of crime in different parts of Florida. It’s free for personal use.
Why are people moving to (or from) Florida?
According to the United Van Lines 47th Annual Movers Study that tracks migrations within the United States, here are the reasons people are moving into Florida, or moving away to other states.
Primary reasons people are moving
| Inbound | Reason for the move | Outbound |
| 29.00% | Retirement | 4.90% |
| 3.80% | Health | 6.30% |
| 19.60% | Family | 38.60% |
| 17.00% | Lifestyle | 11.80% |
| 16.50% | Job | 20.30% |
| 1.90% | Cost | 3.40% |
Total inbound: 56.9%
Total outbound: 43.1%
How Much Is Your Home Worth Now?
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.
Property insurance
As property insurance rates continue to skyrocket in states prone to environmental catastrophes like hurricanes, such as Southern states like Florida, it’s important to get a good handle on what you might be in for regarding homeowner insurance rates when considering moving to one of these locations.
According to survey data from HomeLight’s 2023 Top Agent Insights report, 25% of agents nationwide have said they saw an increase in home sale cancellations due to rising or unexpected insurance costs.
For seniors considering moving to the Sunshine State to retire, you might want to reconsider. Amid the exploding costs of homeowner’s insurance premiums in the state, some senior citizens currently living in the state have expressed concern that the rising cost of insurance premiums may cause them to lose their homes, according to a report from WPTV.
Several high-profile insurance companies vacated the state last year, with more expected to follow as insurers battle back against rising claims costs due to weather conditions in the state.
According to USNews, homeowner’s insurance premiums in Miami among three separate carriers can range between $3,082 annually and $4,158 annually — easily some of the highest rates nationwide.
Budgeting for your move to Miami
Below is a collection of handy online tools you can use to help estimate your moving costs and living expenses in Miami — from how much you’ll need to pay a mover to how much your current home might sell for and the proceeds you can expect.
1. Online move cost estimators
With today’s smart technology, you can find a wide variety of tools to help you estimate the cost of paying for a mover, or how to find a trusted mover for your relocation to Miami. Some examples include:
- Move.com Moving Cost Calculator
- Consumer Affairs ‘Find a Mover’ tool
- U-HAUL ‘Moving Help Cost’ resource page
2. Cost of living calculators
Cost of living calculators are different from cost of living indexes. These tools, which are typically free, provide a comparison based on income and regional costs for housing, transportation, food, healthcare, and other basic necessities in the two locations you select.
For example, if you live in Denver, you can view a side-by-side cost comparison with Miami expenses — or other nearby Florida cities. Some popular cost-of-living calculators include:
3. Living wage and budget calculators
- Living Wage Calculator: Designed by the Massachusetts Institute of Technology (MIT), this calculator can help you estimate the local wage rate that you’ll need as a full-time Miami worker in order to cover the costs of your family’s basic living expenses.
- Family Budget Calculator: This tool, provided by the Economic Policy Institute (EPI), estimates the income your family will need to attain a modest — yet adequate — standard of living in your new Miami community. Choose from 10 family types.
4. Homebuyer calculators
- Home Affordability Calculator: Understand the costs associated with buying a home in Miami and find out how much home you can afford before you start shopping or planning a move.
- Down Payment Calculator: Estimate how much you might need to put down on a home in Miami and learn more about the loan options that work best for you.
- Closing Costs Calculator: Find out how much cash you’ll need for closing costs on a Miami house, including estimated lender and third-party fees.
5. Home seller calculators
- Home Value Estimator: Get a preliminary estimate of what your current home is worth, along with options to help you get the best price when you’re ready to sell.
- Best Time to Sell Calculator: Use this calculator that incorporates nationwide real estate transaction data to help time your move.
- Agent Commissions Calculator: Learn how much you might pay in real estate agent commissions when selling a house in your current market.
- Net Proceeds Calculator: Get a ballpark idea of the net proceeds you could earn from the sale of your existing home.
Selling your current home and buying in Miami
To make your move smoother and less stressful, modern real estate solution companies like HomeLight have created innovative programs to help you buy a house before you sell your old one.
Watch the short video below to learn about HomeLight’s Buy Before You Sell program that lets you move into your new Miami home now and sell your current house with peace of mind and on your timeline.
Partner with a professional to find your new Miami home
As you plan your move, HomeLight can connect you with a top-performing, trusted real estate agent in your current city or in the Miami community where you’d like to live. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
For the best of both worlds — coming and going — ask your agent about HomeLight’s Buy Before You Sell program to help take the uncertainty out of your Miami home purchase.
Header Image Source: (Steele Rutherford / Unsplash)
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