Is Palm Beach Still Affordable? What Buyers Need to Know in 2025

Palm Beach has long been known for its luxury lifestyle, oceanfront estates, and exclusive communities. But in 2025, many homebuyers are asking the big question: Is Palm Beach still affordable? Whether you're relocating from out of state or upgrading locally, understanding the Palm Beach real estate market is essential to making a smart investment.

As a top-producing real estate agent serving Palm Beach, West Palm Beach, and Broward County, I’ve helped hundreds of clients navigate the ever-changing South Florida market. Here's what buyers need to know about affordability in Palm Beach right now.

Palm Beach Real Estate Market Overview in 2025

Palm Beach has seen significant growth in home values over the past decade. According to recent data, the median home price in Palm Beach now exceeds $2.5 million, up from around $1.2 million just five years ago. Much of this increase has been driven by:

• An influx of high-net-worth buyers from New York, California, and Illinois

• Low housing inventory and strong demand

• The appeal of Florida’s no state income tax

• A thriving luxury and waterfront home market

While this upward trend may seem to price out the average buyer, affordability depends on how you define it—and where you look.

Is There Still Affordable Real Estate in Palm Beach?

The short answer is: Yes, but it’s competitive and requires strategy.

Here’s where you can still find opportunities:

1. West Palm Beach

Just across the bridge from Palm Beach Island, West Palm Beach offers urban living, walkable neighborhoods, and prices that are significantly more accessible. In 2025, the median home price in West Palm Beach is around $525,000—well below island prices, with great access to amenities and culture.

2. Condo Living

Condos are still a relatively affordable way to enter the Palm Beach market. While oceanfront units command premium prices, inland and older condo buildings offer options from $350,000 to $800,000, depending on location, views, and amenities.

3. Broward County

If you're open to a short commute, Broward County provides additional value, with a wider range of single-family homes under $600,000 and a strong rental market for investors. Cities like Fort Lauderdale, Pompano Beach, and Coral Springs continue to attract buyers priced out of Palm Beach.

Factors Affecting Affordability in 2025

Interest Rates

Mortgage interest rates in early 2025 have stabilized around 6.0%–6.5%, higher than the historic lows of 2020–2021, but still manageable with proper financial planning. A strong credit score and working with a local lender can help buyers secure better terms.

Insurance Costs

Rising property insurance premiums—especially for coastal homes—have impacted affordability in South Florida. Be sure to get quotes early and work with a local agent who understands wind mitigation credits and flood zones.

Taxes and Cost of Living

Florida’s no state income tax remains a big financial incentive. Many buyers relocating from high-tax states still find the overall cost of living more favorable, especially when factoring in tax savings.

How to Buy Smart in Palm Beach

Even in a high-demand market, buyers can find value with the right strategy:

• Work with a local expert who understands micro-markets within Palm Beach and West Palm Beach

• Get pre-approved for a mortgage to act quickly when the right home appears

• Consider properties that need cosmetic updates, which can offer better pricing and equity potential

• Look just outside high-demand zones like Delray Beach, Lake Worth Beach, or Boynton Beach for more options under $1 million

Final Thoughts: Palm Beach Affordability in 2025

Palm Beach is no longer a hidden gem—it’s a high-demand market with luxury appeal and national attention. But that doesn’t mean affordability is gone. With expert guidance, realistic expectations, and a flexible approach, there are still opportunities to own property in one of the most desirable areas of South Florida.

📞 Thinking of buying in Palm Beach, West Palm Beach, or Broward County? With over 400 happy clients and $405 million in real estate sold, I can help you find the right home at the right price. Let’s connect and explore your options in today’s market.

Alexander Steinhardt

United Realty Group

561-405-8787

AlexSteinhardt@gmail.com

. Sold by Alexander Steinhardt. $570,000. Aerial view of a Palm Beach FL (4181 Coconut Boulevard) real estate property with a shingle roof, tropical landscaping, and close proximity to the Atlantic Ocean.