What Is The Cost Of Living In Orlando Vs. Miami?

When considering a new place to call home in The Sunshine State, Orlando and Miami may be at the top of your list – and understandably so. These popular Florida cities may as well be in a world of their own, as they each have unique characteristics.

On the one hand, Orlando is great for families with kids, because of the city’s close proximity to numerous world-renowned theme parks. On the other hand, if you’re someone that prefers beaches and nightlife, Miami may be more your style. But, how do these two cities stack up when it comes to cost of living?

The overall cost of living index in Orlando, Florida is 103.3, meaning it is roughly 3% more expensive to live in Orlando than the national average (100). Miami, Florida, on the other hand, has a cost of living index of 122.4, so it is considerably more expensive than both Orlando and the national average. Orlando’s median home price is $294,400, which is pretty on par with the national average of $291,700. Meanwhile, the median home price in Miami is $398,100 – about 35.2% more than Orlando.

Aside from median housing prices, let’s take a more comprehensive look at how the cost of living compares in Orlando vs. Miami.

Throughout much of 2020, the state of Florida saw a huge migration of transplants as people discovered that they could earn the same amount of money and have a much higher quality of life in the state. The combination of a massive influx of people and record-low mortgage rates resulted in limited inventory, a high demand for housing, and skyrocketing prices. Though, prices are higher than ideal across the state of Florida, home prices still differ between Orlando and Miami.

The cost of owning a home in Orlando is only slightly more expensive than the rest of the U.S. Whereas, housing prices in Miami tend to be quite a bit higher than the national average. The median cost of a home in Orlando is only $294,400, while Miami’s median home price is $398,100.

This means that you’d end up spending between 30 and 40 percent more on a home in Miami compared to Orlando. Overall, cheaper housing can be seen as a significant advantage to opting for Orlando instead of Miami as a place to live.

Observing housing cost indexes can give you an even better idea of how home prices differ in Orlando versus Miami. Based on a nationwide average of 100, Orlando’s housing cost index is 106.1 and Miami’s is 142.7. This means that housing in Miami, Florida is about 34.5% more expensive than Orlando, Florida. However, prices will vary depending on where you specifically live in either city.

Like home prices, rental prices vary based on a few different factors, including location, size, and quality. The average rent for an apartment in Orlando, Florida is $1,611 a month and the average apartment size is 963 square feet. However, the rent you can expect to pay in the city ultimately comes down to the neighborhood that you live in.

For example, the most affordable neighborhoods in Orlando are Seaboard Industrial, Mercy Drive, Signal Hill, The Willows, and Rosemont North, where renters pay an average of $1,062 per month. Whereas, College Park, Palomar, Lake Shore Village, and Spring Lake are the most expensive neighborhoods in the city, each with an average monthly rent of $2,028.

With that said, examine the table below for a breakdown of the average monthly rent in some of the many neighborhoods across Orlando:

Conversely, the average rent in Miami, Florida is $1,915 and the average apartment size is 887 square feet. This means that, on average, apartments are smaller and more expensive in Miami than Orlando. However, like Orlando, rental prices in Miami differ based on the specific neighborhood that you rent in.

For instance, Palmer Lake – Mia Station is the most affordable neighborhood in Miami, where renters pay an average monthly rent of $986. Whereas, the most expensive neighborhood in Miami is Brickell Key, with an average rent of $2,646 per month.

The following table provides a more detailed look at the average monthly rent in some of Miami’s many neighborhoods:

The state of Florida is known for having property taxes well below the national average. Property taxes in Florida are collected at the county level. Orlando’s Orange County has an average effective property tax rate of 0.96%, which is quite a bit lower than the national average of 1.07%. This means that Orlando homeowners pay 0.96% of their home’s assessed value in property taxes annually, equating to a median payment of $2,073 a year.

Although Miami’s property taxes are slightly higher, they are still below the national average at 0.97%. However, since the median home cost is more in Miami, the median annual property tax payment is $2,610.

The median household income in Orlando is $45,436, which is roughly 21% lower than the national median household income of $57,652. When compared to Miami, however, Orlando residents make nearly 34% more than Miami residents – with Miami’s median household income of only $33,999. Although both cities have median household incomes below the national average, overall, you have a better chance of making more money in Orlando than Miami.

These two cities also differ substantially when it comes to unemployment rates. The unemployment rate in Miami is quite a bit higher than both Orlando and the national average. Orlando’s unemployment rate is 5.8% and Miami’s is 8.3%, compared to the national average of 6%.

Since food and groceries are expenses that people encounter on a daily basis, the overall grocery and food index is another important factor that influences the cost of living in a particular area. If you choose to live in Orlando instead of Miami, you’re looking at about a 6.5% savings on food and groceries.

The overall grocery cost index in both Orlando and Miami are above the national average of 100, coming in at 100.7 and 107.3 respectively. Refer to the following table for a more detailed look at the average prices of groceries in Orlando vs. Miami.

Whether you choose to move to Orlando or Miami, you must also consider transportation costs in order to correctly determine the cost of living in both cities. These costs include expenses such as gas prices, vehicle purchase costs, bus fares, monthly transit fees, and other public transportation expenses.

Although both cities have higher transportation costs than the rest of the country, with Orlando’s transportation cost index of 110.1 and Miami’s transportation cost index of 144.5, you’d enjoy a very nice savings of about 23.8% on transportation costs in Orlando.

When you consider overall cost of living index, Orlando and Miami may be located in the same state but they differ considerably. Overall, Miami is approximately 18.5% more expensive than Orlando. The cost savings in Orlando is mainly contributed to more affordable housing, as Miami’s median home cost is 35% more. Though, Orlando residents also enjoy cheaper transportation, food and groceries, healthcare, and childcare.

Additionally, you have a higher chance of earning more money in Orlando compared to Miami, with the higher median household income. Not to mention, the lower unemployment rate is a positive sign for the economy in Orlando.