.svg)
Thinking about making a move to the Sunshine State? With nearly 1,000 people relocating to Florida every day, the Florida real estate market is evolving fast. If you’re weighing the benefits of buying a home vs. renting, understanding the local real estate market is key.
Both options come with pros and cons, from cost and flexibility to investment potential and lifestyle. By weighing these factors against your own goals, you’ll be better equipped to make a confident, informed choice.
Pros and Cons of Building vs. Renting
Choosing between building and renting involves weighing your long-term goals against short-term flexibility.
A new build offers customization, a focus on energy efficiency and the chance to build equity for yourself. However, you won't be able to move into a to-be-built home right away.
Renting provides you with flexibility, lower upfront costs and the relief of limited maintenance. On the downside, you miss out on equity growth, are limited in customization and face the risk of rent increases.
Current State of the Florida Real Estate Market
Florida’s housing market in 2025 is showing signs of becoming more balanced and sustainable, but certain areas are booming in popularity.
Housing Market Trends in Florida
Inventory is rising in Florida’s housing market, offering more options for excited buyers. According to Quantum Realty Advisors, statewide median home prices that were once surging have started to stabilize. In many areas, home prices have declined modestly by around 1% to 3%.
Regions like Sarasota, Tampa and Cape Coral are experiencing price adjustments from prior highs, with some declining by up to 10%. Florida homes are also staying on the market longer, with the median time around 70-75 days.
Popular Areas for Buying and Renting
Florida’s population is growing, with nearly 1,000 new residents a day. Hotspots in South Florida, like Miami-Dade, Broward and Palm Beach, have seen continued price gains of 8%-11% year-over-year.
However, markets like Sarasota, Bradenton and Parrish are cooling down and finding equilibrium.
Ultra-luxury areas like Port Royal in Naples have median home prices that stretch into the tens of millions with significant appreciation. Meanwhile, mainstream markets around Sarasota, Bradenton and Parrish are drawing attention for their affordability, lifestyle value and new inventory.
Building a Home in Florida
If you’re trying to figure out whether it’s the right time to buy a home in Florida, it’s vital that you weigh the benefits against the challenges. Let’s take a closer look.
Advantages of Building Your Own Home
The three main advantages of building a home are customization, modern design and long-term value.
When you build your own home, you can design it in a way that fits your aesthetic and lifestyle. From layout and finishes to energy-efficient features and modern amenities in some communities, you get full control of customization. New homes can be built to current energy-efficient and hurricane-resistant standards, saving you money on utilities and insurance.
With a new home, you create equity from day one. You can also tailor your features to improve your resale potential in a competitive market.
Challenges and Considerations
The four main challenges to consider when thinking about buying a home in Florida are time, cost uncertainty, permitting delays and insurance requirements due to climate change.
From selecting a homesite to the build process, new construction demands a whole lot of patience and planning.
Unexpected delays due to permitting or supply chain issues can also increase your timeline and budget. In hurricane-prone Florida, insurance premiums remain higher than the national average, making it another important factor to plan for when building.
Building in Medallion Home Communities
If you’re considering building with Medallion Home, we have localized advantages in communities like Sarasota, Bradenton and Parrish.
With over 40 years of semi-custom homebuilding experience and trusted craftsmanship, Medallion Home delivers homes built to last, designed specifically for the Florida lifestyle.
When you work with Medallion Home, you can explore semi-custom design options in the models and discuss them at the Sales Center. Then, you can bring the vision to life at the Design Center.
With a focus on honesty, reliability and great customer service, Medallion Home makes the whole building process smooth and stress-free.
Renting in Florida
If you’re not quite ready to buy, renting in Florida can be a practical short-term option. Like building a new home, it comes with both benefits and drawbacks.
Benefits of Renting
The three main benefits of renting are flexibility, lower upfront costs and simplicity of maintenance.
Renting is ideal for people not quite ready to settle down. It offers the flexibility to move or change neighborhoods, along with lower upfront costs compared to a down payment. Plus, because landlords typically handle repairs and maintenance, you're also protected from many unexpected expenses.
Drawbacks of Renting
The three main drawbacks of renting are lack of equity, unexpected rent increases and limited personalization.
Rent payments don’t translate into long-term investment or ownership, which means you’re not building equity. In areas with high demand, rent inflation can make affordability a challenge. Additionally, you can’t renovate or upgrade freely, so your living space is often less personalized to your style and preferences.
Renting Options in Popular Florida Communities
In areas like Sarasota, Bradenton and Parrish, rentals tend to be single-family or duplex units. Rental markets can vary, but generally, the rents are higher than average. However, rising inventory is slowly easing some of that pressure.
In broader Florida metros like Miami-Dade, Orlando and Tampa, rental rates remain elevated. Miami averages around $2,800 a month, Orlando $2,300 a month and Tampa $2,200 a month. It continues to rise by about 6% each year.
Financial Considerations
Before making a big decision, it’s important to understand the financial implications of both renting and buying.
Cost Comparison: Building vs. Renting
A good way to split up cost comparisons is between short-term and long-term goals.
Short Term:
- Renting is less expensive upfront with minimal closing costs and a lower financial commitment.
- Building requires more capital, including land, construction, insurance and permit costs.
Long term:
- Renting offers no return. Monthly rent is an expense without ever owning an asset.
- Constructing a building increases property value and can lead to long-term appreciation, especially in desirable communities.
Financing and Mortgage Options
If you decide to rent, you’ll need to meet a few requirements to get approved, such as proof of income and funds for a security deposit plus first or last month’s rent. While renting doesn’t require a loan, it also doesn’t let you build equity in the property.
When building or buying, you have multiple financing options available, including new construction loans, FHA, VA and USDA programs, as well as conventional mortgages, often with available incentives.
As of early 2025, rates remain around 6.5% to 6.9%, with projections suggesting a potential dip to 6.4% before the end of the year. This marks a positive shift from the 2023 peak of 7.79%.
Building vs. Renting: Make the Right Choice for You
Lifestyle and Personal Preferences
If you value personalization, long-term stability and a home designed specifically for your family, building is a compelling option. If your situation calls for mobility and you want to wait out market changes, renting offers flexibility without long-term commitment.
Long-Term Investment Potential
Building gives you tangible, long-term gains of equity and appreciation, especially in stable or growing communities like the areas that Medallion Home specializes in. Even in cooling or oversupplied markets, new homes in high-quality communities can outperform resale.
Renting offers no capital return, leaves you vulnerable to market rent increases and provides no long-term investment benefits.
Find Your Dream Home With Medallion Home
Choosing between buying and renting in the Florida real estate market carries more weight than ever. Building with Medallion Home puts you in control with craftsmanship, customization and equity designed around the Florida lifestyle.
Tour available homes, step inside model homes and browse community portfolios to see our work in action. With our award‑winning team, custom Design Center and flexible floor plans, you can design a home that’s truly yours with Medallion Home.
