Moving to Key West, FL

What a move to Key West costs in housing

Prices climbed 24.8% over five years and then stopped climbing. The all-homes index moved 0.3% in the past year, houses 0.4% and condos slightly negative. A typical single-family house sits near $1,149,359 and a typical condo near $705,769.

Size is where the budget breaks. A 2-bedroom runs about $838,599 and a 3-bedroom about $1,238,154, so going from two bedrooms to three costs roughly $400,000 more. Families moving with kids feel this first. A 4-bedroom is about $1,818,997, and the upper third of the market starts around $1,930,373.

A flat year after a long run-up means you are buying at a high plateau. In practice that gives buyers more room to ask for repairs and credits than they had a few years ago. I would build the budget on today's values and keep a cushion for insurance, which is the cost movers most often underestimate here.

An island of old frame houses and small complexes

Census data puts the median year built at 1968, which is old even by Florida standards. About 42.0% of homes are detached single-family houses, 17.0% of units are in buildings with 10 or more units, and mobile homes are a small 2.4%. There are few towers. Most condos are in low-rise complexes or older buildings divided into units.

In the historic core you find wood-frame houses, many raised on piers, with metal roofs and porches. Exterior changes inside the historic district go through the city's Historic Architectural Review Commission, so a new owner cannot freely swap windows, siding or roofing. Farther east, the island has more concrete block homes from the middle of the last century.

Each type has its own inspection list. Wood houses need a close look for termites, rot and the condition of the piers. Block homes need checks on roof age, windows and old plumbing. Insurers will ask for a 4-point inspection on most of this stock because of its age.

Who lives here year-round

The median age is 46.1, and 21.6% of residents are 65 or older. Seasonal homes make up 14.8% of housing units, so a meaningful share of houses sit empty for part of the year, mostly in summer and fall.

The year-round economy runs on tourism, the city and county governments, the hospital and Naval Air Station Key West on Boca Chica Key just up the chain. Working households face the same prices as everyone else, and housing costs for local workers are a constant topic in town. If you are moving for a job on the island, run the mortgage, insurance and association fees against your actual income before you fall for a porch.

Day to day, the island is small enough that many residents bike or walk for errands. Parking is tight in the older neighborhoods, and a driveway or off-street space adds real value to a house.

One road, one small airport, one hospital

The Overseas Highway, US 1, is the only road out. Miami is several hours away by car, longer on holiday weekends or after an accident on a two-lane stretch. Key West International Airport has commercial flights, which helps for family visits, though fares and schedules are less flexible than on the mainland.

Lower Keys Medical Center on neighboring Stock Island is the area's hospital. Its board has been working on finding the next operator as the current lease approaches its 2029 end. For some specialist care, residents travel to the mainland. If you have ongoing medical needs, check that your doctors, plan network and pharmacy work from here before you sign a contract.

Groceries, building materials and contractors all cost more because everything comes down the same highway. Plan for longer waits on repairs, especially after a storm.

Storms, flood zones and the insurance bill

Key West sits low, and much of the island falls in FEMA high-risk flood zones. Lenders require flood insurance there, and flood coverage is a separate policy from homeowners insurance. Hurricane Irma in 2017 made landfall in the Lower Keys, and buyers still see its effects in permit histories and repairs on older houses.

During your inspection period, get real quotes for wind, flood and homeowners coverage on the exact address. Ask for the roof age, a wind mitigation report and the elevation certificate if one exists. Your hurricane deductible will be set as a share of the dwelling limit, and on a $1,000,000 Key West house a 5% deductible means $50,000 out of pocket before the policy pays. Florida applies it once per calendar year.

Evacuation orders in the Keys come early and cover the whole chain. Newcomers should have a plan for where they go and how long they can stay away.

Taxes, and the mistakes I see newcomers make

Florida has no state income tax. If Key West becomes your permanent residence, the homestead exemption takes up to $51,411 off assessed value in 2026, and Save Our Homes limits yearly increases in that assessment to 3% or CPI. Keep the place as a winter home and you lose the exemption, with only the 10% non-school cap to slow increases. After any sale the assessment resets to market value, so the seller's tax bill tells you little about yours.

• Budgeting from the listing's tax line. Recalculate on your purchase price.
• Assuming you can add on. New units are limited by the Keys permit allocation system, and historic rules shape what you can change.
• Skipping the summer visit. See the island in August heat before committing.
• Assuming the rest of the Keys is cheaper. Stock Island is about $667,304 and Big Pine Key about $752,866, but Key Largo ($1,094,723) and Islamorada ($1,238,000) cost more than Key West.

This isn't legal or tax advice. If you want a list of homes that fit your budget and the insurance numbers behind them, a shortlist is the practical next step.