I’m a Real Estate Agent: Here Are the 4 Florida Cities Where You Should Avoid Buying a Home

aerial skyscrapers downtown miama florida_iStock-1716498889

The average home value in Florida is $397,137, which is 3.3% higher than what it was a year ago. While this is lower than the national median home price of $417,700, it’s still more expensive than what the average American can comfortably afford. This is especially true when you factor in high interest rates, homeowners insurance premiums and maintenance.

Check Out: I’m a Real Estate Agent: These 5 Cities Are Becoming Unaffordable

Still, if you’re thinking about buying a home in The Sunshine State, there are many places worth checking out. At the same time, there are certain cities where you might be better off not purchasing property.

Price is a major factor here, but it’s not the only one. Certain Florida cities also have high crime rates or weather hazards that can cause insurance prices to skyrocket. All of this is important to consider before making your purchasing decision.

So, where should you avoid buying a home in Florida? Here’s what Martin Orefice, a Florida real estate agent and the CEO of Rent To Own Labs, said about the locations to avoid.

Sponsored: Protect Your Wealth With A Gold IRA. Take advantage of the timeless appeal of gold in a Gold IRA recommended by Sean Hannity.

Miami

Orefice suggested avoiding the greater Miami area. This includes everything from the Keys to Hollywood.

“The entire area is so thoroughly built up that there’s essentially no new construction to keep prices in check,” he said. “Throw in high property tax rates and the cratering insurance market, and it’s just not worth it, especially for the average homebuyer.”

The typical home value in Miami is $571,215 — up 8.7% over the past 12 months. This is about $150,000 higher than the national average and will price out the average buyer.

“People who can afford the high prices will still find a wonderful place to live,” said Orefice, “but the bottom and middle of the market just aren’t there.”

Be Aware: ​ChatGPT Unveils: 5 Worst Cities To Buy a House in 2024

Boca Raton

Next up on the list is Boca Raton, which is home to about 100,000 people and is located along the state’s southeastern coast. While a beautiful area, the cost of real estate alone might deter the average buyer.

The typical home value is $585,861, a 5.9% increase from the past year.

“Coastal cities in Florida are becoming increasingly difficult places to own a home. This is especially true of places like Boca Raton,” Orefice said. “While [the] area has lovely beaches, it also has home prices that simply can’t justify the financial risk.”

According to NeighborhoodScout, the crime rate in Boca Raton is also significantly higher than the national average for communities of its size. That doesn’t mean all neighborhoods are unsafe, but it’s worth keeping in mind.

And don’t forget about homeowners insurance. The average yearly cost of insurance is $3,377 in Boca Raton. In comparison, the average cost of homeowners insurance statewide is $2,490 a year.

Sarasota

Another coastal area to avoid, according to Orefice, is Sarasota.

Home prices there are a little lower than what you’d get in Miami at $464,458. They’re also increasing at a slower rate than other areas of the state. But the cost of insurance alone could eat into your homebuying budget.

“Homeowners insurance is becoming increasingly expensive in Florida,” Orefice said. This is largely due to the increased climate risk from hurricanes.

According to the Insurance Information Institute, the average annual cost of homeowners insurance in Sarasota is $2,165. The region has historically suffered from less hurricane-related property damage than other states, which is good news, but it can still happen.

Daytona Beach Shores

Daytona Beach and the nearby Daytona Beach Shores are also areas Orefice suggested avoiding.

In terms of property prices, Daytona Beach Shores is above the national average at $432,384. For a home around that price, the average homeowners insurance premium is around $4,657 a year.

According to Risk Factor, Daytona Beach Shores also has an extreme risk factor, meaning it’s at a high risk of experiencing severe storm winds, hurricanes and tornadoes. That being said, if you head north to Daytona Beach, you could see lower insurance costs and fewer environmental-related damages.

“Your beachfront home is likely to be underwater financially as well as literally,” Orefice said. If you want to lower your insurance risk, you might want to look further inland.

Where To Buy a Home in Florida

When it comes to buying a home, it’s important to consider your own financial situation, goals and needs. While one person might avoid a place like Miami or Sarasota, someone else might find great appeal in those areas.

If you’re looking for other places to buy property, Orefice had some suggestions for where to start your search.

“Orlando, Lakeland, and Gainesville all have wonderful Florida weather and zero income tax, and also come with a lot less climate risk,” he said. “The I-4 corridor from Lakeland up to Sanford, anchored by Orlando, is far enough inland to be safe from storm surges, which helps to keep insurance costs somewhat more survivable.”

These areas also have room to grow, he added, so now might be a good time to get in.

Just be sure to consider your own budget, mortgage interest rates, the cost of property taxes, homeowners insurance and maintenance. Check out the area’s crime rate, livability score and opportunities as well to ensure you’re moving somewhere that fits both your budget and lifestyle needs.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: Here Are the 4 Florida Cities Where You Should Avoid Buying a Home