Thinking about retiring in Florida? Here's what you need to know about costs in South Walton and nearby areas:
- South Walton: Median home price of $324,000, but costs rise with coastal living. Expect higher insurance premiums ($5,695/year) and HOA fees ($400–$600/month). Utilities range from $521–$639/month, while groceries average $1,150/month.
- Destin: A pricier option with a median home price of $550,000. Similar insurance costs, but higher dining and entertainment expenses due to tourism.
- Fort Walton Beach: A more budget-friendly coastal choice with homes at $324,000 and lower daily living costs.
- Ocala: The most affordable, with a median home price of $275,000. No hurricane risks mean lower insurance costs, but it lacks beach access.
Key Takeaways:
- Coastal areas like South Walton and Destin offer scenic beauty but come with higher costs.
- Fort Walton Beach balances affordability with beach access.
- Ocala is ideal for retirees prioritizing budget over coastal living.
Annual Retirement Costs:
- Coastal areas: $66,000–$78,000
- Ocala: $54,000–$66,000
Florida’s tax perks (no state income tax, 0.82% average property tax rate) apply statewide, but hurricane insurance and HOA fees make a big difference in coastal budgets. Choose based on your financial goals and desired lifestyle.
The 10 CHEAPEST RETIREMENT TOWNS in Florida 2025
1. South Walton
South Walton, located along Florida's scenic 30A, has become a popular choice for retirees seeking a coastal lifestyle. With its stunning emerald beaches and resort-like communities, living here requires careful financial planning to enjoy its many perks.
Housing Costs
Housing is the biggest expense in South Walton. Home prices vary widely, starting around $350,000 for smaller homes or condos and exceeding $1 million for luxury or waterfront properties. On top of mortgage payments, retirees should budget for homeowners' insurance, which typically runs between $475 and $700 per month, and HOA fees ranging from $400 to $600 . Renting is another option, with two-bedroom rentals costing anywhere from $2,000 to $3,500 per month, depending on location and amenities.
Cost of Living
Living in South Walton costs more than the state and national averages, largely due to its appeal as a tourist hotspot. Florida's 6% state sales tax, combined with local surcharges, pushes the total to 7–8.5%, making dining and entertainment pricier . However, property taxes remain manageable, with an effective rate of 0.82%. For a median-priced home, this translates to about $198 per month . Coastal properties may face additional fees for storm-related repairs or maintenance.
Healthcare Access
Healthcare is another key consideration for retirees in South Walton. The area offers access to several providers, including Gulf Coast Medical Center and facilities in nearby Destin and Fort Walton Beach. Healthcare costs align with Florida's average, coming in at roughly $21,400 annually. However, living in a coastal region can lead to higher insurance premiums, and specialized care might require travel to larger medical centers.
Lifestyle Amenities
While living costs are higher, South Walton offers a lifestyle that many find worth the expense. Its pristine beaches, state parks, golf courses, and year-round events create an inviting environment for retirees. For those who enjoy activities like golf memberships, beach club access, or fine dining, these extras can add $100–$300 per month to a budget. Dining and entertainment are generally more expensive compared to less touristy areas, but free activities - like strolling along the beach or exploring state parks - can help balance the budget.
For retirees exploring South Walton, resources like sowal.co provide helpful tips on local events, dining specials, and hidden gems along the 30A coastline.
2. Destin
A short drive east of South Walton, Destin offers retirees a distinct coastal lifestyle, albeit with a steeper price tag. Unlike South Walton's relatively balanced pricing, Destin's housing market carries a noticeable coastal premium.
Housing Costs
Living in Destin doesn't come cheap. As of August 2025, the median home sale price stood at around $550,000, significantly higher than nearby Fort Walton Beach, where the median price is about $324,000. Housing options vary widely, from condos starting at $209,000 to luxury waterfront estates that can reach $5.9 million. Most homes, however, fall in the range of $350,000 to $450,000[3,4].
Monthly housing expenses go beyond the mortgage. Gated and resort-style communities often come with HOA fees ranging from $400 to $600 per month. Property taxes, based on Florida's median effective rate, average $2,386 annually. And like other coastal areas, hurricane risks push up homeowners' insurance costs, averaging $5,695 per year (or about $475 per month) for a $300,000 home[1,2]. Once housing is accounted for, everyday expenses further define Destin's premium cost of living.
Cost of Living
Everyday living costs in Destin are slightly above the national average. Monthly utilities, driven by year-round air conditioning needs, average around $639. Groceries for Florida households typically cost about $1,150 per month, which breaks down to roughly $287 per week. Sales tax in Destin hovers around 7%, combining a 6% state rate with local surcharges. However, essentials like groceries and prescription medications are exempt from sales tax.
Healthcare Access
Destin is home to hospitals, clinics, and specialists, though some advanced treatments may require travel to larger medical centers in the region. On average, healthcare costs in this area amount to $21,400 annually, making it a key consideration for retirees, especially since coastal living can raise insurance premiums.
Lifestyle Amenities
Destin shines when it comes to lifestyle perks. With pristine beaches, top-tier golf courses, world-class fishing, and extensive boating facilities, the area is a haven for outdoor enthusiasts. Many communities offer resort-style amenities, such as pools, fitness centers, and social clubs, often included in HOA fees. The town also boasts a lively dining scene and plenty of entertainment options. While these features elevate the quality of life, they also contribute to the area's higher living costs.
For more tips and resources on coastal retirement planning, websites like sowal.co provide valuable local insights and advice.
3. Fort Walton Beach
Fort Walton Beach offers an affordable coastal lifestyle that’s hard to beat. Nestled just minutes from Destin, it provides easy beach access and plenty of amenities without the hefty price tag, making it a great option for retirees looking to stretch their budget.
Housing Costs
Housing in Fort Walton Beach is considerably more affordable compared to its upscale neighbor. As of August 2025, the median home price sits at $324,000, which is well below Florida's state median of $412,500 and a whopping $226,000 less than Destin’s median of $550,000. Options range from cozy condos starting at $209,000 for a 2-bedroom, 1-bath unit (900 sq ft) to luxurious waterfront properties priced up to $5.9 million. Most homes typically fall in the $350,000 to $450,000 range.
Monthly housing costs are relatively manageable. Property taxes average around $2,386 annually (roughly $198 per month), based on Florida's median effective rate of 0.82%. Homeowners' insurance tends to run between $475 and $700 per month, while HOA fees in retirement communities generally range from $400 to $600 per month.
Cost of Living
Everyday expenses in Fort Walton Beach are in line with state averages. Utilities, including electricity, water, sewer, trash, internet, and phone services, average about $521 per month. Grocery bills hover around $1,150 monthly, and the local sales tax is approximately 7%, with essential items exempt. Retirees also benefit from Florida's lack of state income, estate, and inheritance taxes, providing an extra layer of financial ease.
Healthcare Access
Fort Walton Beach is well-equipped to meet retirees' healthcare needs. The area features facilities like Fort Walton Beach Medical Center and various specialty clinics, making it a standout choice for retirees in Okaloosa County. On average, healthcare costs for retirees in the area amount to $21,400 annually.
Lifestyle Amenities
Life in Fort Walton Beach comes with plenty of perks. Retirees can enjoy pristine beaches, golf courses, fishing, and boating. The community also hosts regular events and boasts a lively dining scene, adding to its charm for those who want an active retirement. Being part of the Destin–Fort Walton Beach metropolitan area means access to even more attractions, all while maintaining its own distinct and affordable character. For more local insights, check out sowal.co.
Up next, we’ll explore the retirement cost benefits of Ocala.
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4. Ocala
Ocala is a standout choice for retirees looking for a budget-friendly lifestyle in Florida. Nestled in central Florida, Ocala offers a more affordable alternative to the pricier coastal areas while still delivering the amenities that retirees value.
Housing Costs
One of Ocala's biggest draws is its affordable housing market. The median home price is about $275,000, which is a whopping $137,500 less than Florida's state median of $412,500 and an even more impressive $380,000 less than Miami's median of $655,000. This affordability extends across all types of properties.
Monthly housing costs are manageable, which is a huge plus for retirees on a fixed income. Property taxes align with Florida's average effective rate of 0.82%, amounting to around $198 per month for a typical home. Additionally, homeowners in Ocala enjoy lower insurance premiums because the area faces less risk from hurricanes and flooding compared to coastal regions. Utility bills, covering essentials like electricity, water, garbage, and internet, average $639.25 per month, further contributing to the area's affordability.
Cost of Living
Everyday expenses in Ocala are over 20% lower than in Florida's larger cities. For example, groceries cost retirees about $1,150 per month, and the local sales tax is 7%, with necessities like groceries and prescription medications exempt from this tax.
Florida's tax-friendly policies, including no state income tax, make Ocala an attractive option for stretching retirement budgets. This combination of low living expenses and tax advantages makes it especially appealing for those looking to maximize their savings.
Healthcare Access
Healthcare in Ocala is both accessible and affordable. Retirees typically spend $21,400 annually on medical expenses starting at age 65, which is in line with state averages. While the city may not offer the extensive range of medical facilities found in larger metropolitan areas, it does provide a solid selection of hospitals, clinics, and specialized services. For most retirees, this ensures adequate care for routine and specialized medical needs.
Lifestyle Amenities
Ocala doesn’t skimp on lifestyle perks. Its natural beauty and outdoor recreation opportunities are showcased through golf courses, parks, and equestrian centers. Retirement communities like On Top of the World and Stone Creek offer amenities such as clubhouses, fitness centers, pools, and a variety of social activities. HOA fees in these communities typically range from $400 to $600 per month, making them an affordable option for retirees.
The city also boasts a lively dining scene and a calendar filled with cultural events, giving retirees plenty of opportunities to stay engaged. Ocala’s balance of affordability and quality amenities makes it a top recommendation among financial experts and retirement planners. With its mix of affordable housing, low daily expenses, and enjoyable lifestyle options, Ocala is an excellent choice for retirees looking to make the most of their golden years.
Now, let’s dive into the pros and cons of each retirement destination to help you make the best decision.
Pros and Cons
Here's a breakdown of the main pros and cons influencing retirement costs and lifestyle across popular Florida destinations. The table below highlights key differences in housing, insurance, and overall lifestyle.
| Location | Pros | Cons |
|---|---|---|
| South Walton | • High-end coastal living with stunning 30A beaches and exclusive communities • Scenic beauty, including coastal dune lakes and sugar-white sands • Upscale amenities like fine dining and spas • Quieter atmosphere compared to Destin, while still offering beach access • Variety of housing options for different budgets |
• Expensive housing, especially for beachfront properties • Costly insurance premiums due to hurricane risks • Hurricane exposure, requiring preparation and potential evacuation • Higher upkeep costs from coastal weather and salt air |
| Destin | • Lively community with abundant social and entertainment options • Good healthcare access, including local hospitals • Emerald coast beaches and plenty of water activities • Strong resale market for properties • Well-developed infrastructure for year-round living |
• Tourist-heavy area with seasonal crowds and traffic • Higher costs for dining and services due to tourism • Above-average property prices, limiting budget-friendly options • Seasonal price spikes and limited availability during peak times • Hurricane insurance costs, similar to other coastal areas |
| Fort Walton Beach | • Affordable coastal living with lower median home prices • Laid-back vibe with less commercial development than Destin • Family-oriented community with quality schools and programs • Moderate insurance costs compared to premium coastal areas • Military benefits, including healthcare and social networks |
• Fewer luxury amenities compared to South Walton • Limited specialist healthcare compared to larger cities • Fewer cultural activities and upscale dining options • Hurricane risks, requiring preparation and insurance • Smaller retirement community, with fewer age-specific programs |
| Ocala | • Most budget-friendly with a median home price of $275,000 • No hurricane risks, eliminating high insurance costs • Lower overall living expenses • Established retirement communities, such as On Top of the World, with HOA fees ranging from $400–$600 • Outdoor recreation and equestrian activities • Same tax benefits as coastal areas without the added costs |
• No beaches nearby, requiring travel for coastal activities • Limited specialist healthcare, requiring travel for advanced care • Fewer entertainment and cultural options • Hot, humid summers without the relief of coastal breezes • Less diverse dining scene compared to tourist-driven areas |
For retirees, the cost of living varies significantly between these locations. Coastal destinations like South Walton typically require $66,000–$78,000 annually, while inland Ocala offers a more affordable range of $54,000–$66,000 yearly. The difference - ranging from $12,000 to $24,000 annually - is largely due to disparities in housing prices, insurance costs, and tourism-related expenses.
Insurance is a major factor. Inland areas like Ocala enjoy lower, more predictable premiums, while coastal retirees often face homeowners' insurance costs exceeding $700 per month, adding an extra $3,000–$8,400 annually compared to inland locations. However, all four locations benefit from Florida's tax perks, including no state income tax and an average property tax rate of 0.82%.
Healthcare access also varies. Coastal areas like South Walton and Destin generally offer better access to specialized care, while retirees in Ocala and Fort Walton Beach might need to travel for certain procedures. That said, average healthcare costs remain consistent across all locations, starting at about $21,400 annually for retirees aged 65 and older.
Conclusion
Choosing where to retire in Florida means weighing your budget against the lifestyle you envision. For those with higher budgets, South Walton offers a luxurious coastal experience with its stunning beaches, upscale dining options, and a lively community atmosphere. If you're considering relocating there, check out sowal.co for helpful local insights.
For retirees seeking a balance between cost and coastal living, Destin and Fort Walton Beach provide mid-range options, combining reasonable expenses with access to the Gulf's beauty. On the other hand, Ocala stands out as the most budget-friendly choice, thanks to its significantly lower housing costs and inland location.
It's important to remember that retirement expenses go beyond just the price of a home. Coastal living often comes with added costs like higher homeowners' insurance, HOA fees ranging from $400 to $600 per month, and elevated prices for dining and services due to tourism. However, all these locations share one major advantage: Florida's tax perks, including no state income tax and property tax rates averaging just 0.82%.
Healthcare costs remain fairly consistent across the state, but coastal areas may provide better access to specialized medical care - something to consider as health needs evolve with age. Ultimately, your decision should align with both your financial situation and the lifestyle you want to enjoy.
While South Walton represents the pinnacle of coastal retirement, it requires thoughtful financial planning to ensure it fits your long-term goals. Whether you prioritize affordability, access to amenities, or a peaceful inland retreat, the choice comes down to what best matches your vision for retirement.
FAQs
Why is the cost of living higher in South Walton compared to other areas like Ocala?
The cost of living in South Walton tends to run higher, and there are a few key reasons for this. Housing costs play a major role. South Walton's prime location along the Gulf Coast, paired with its luxury real estate market, naturally drives up property values and rental prices. It's a sought-after area, and that demand comes with a price tag.
Another factor is healthcare services. The region emphasizes top-notch facilities and specialized care, which often translates to higher costs compared to other areas.
Everyday expenses also add up. Whether it's dining out, buying groceries, or enjoying leisure activities, prices in South Walton often reflect its appeal to both residents and tourists who are looking for premium experiences. When you compare it to a place like Ocala, where housing and daily essentials are generally more affordable, South Walton stands out as a more upscale retirement choice.
How do insurance costs in South Walton compare to inland areas like Ocala?
Insurance costs in South Walton tend to run higher compared to inland areas like Ocala. Why? Coastal living comes with added risks, such as hurricanes and flooding, which drive up premiums. Homeowners in these regions often need extra policies, like flood insurance, adding to the total expense.
On the other hand, inland areas usually experience fewer weather-related risks. This often translates to lower insurance premiums for comparable coverage. If South Walton is on your radar for retirement, it’s wise to plan ahead and account for these higher insurance costs in your budget.
How does retiring in a coastal area like Destin compare to an inland area like Ocala in terms of lifestyle and amenities?
Retiring in a coastal gem like Destin means embracing a relaxed lifestyle where stunning beaches, water activities, and a lively social scene are right at your doorstep. Destin boasts an array of seafood restaurants, outdoor festivals, and breathtaking scenery, giving it that "permanent vacation" vibe. That said, its popularity as a tourist hotspot can drive up the cost of living - especially when it comes to housing.
In contrast, Ocala offers a quieter, more rural retreat, celebrated for its equestrian culture, nature trails, and a much lower cost of living. If you're drawn to a slower pace and more affordable housing, this spot might be your match. While it doesn’t have the ocean views of Destin, Ocala makes up for it with a close-knit community feel and access to natural treasures like the Ocala National Forest.
Your choice ultimately hinges on what suits your lifestyle and budget best. If ocean breezes and vibrant energy call your name, Destin could be the perfect fit. But if serenity and affordability are your priorities, Ocala might just feel like home.
