Why Are Houses So Cheap in Boca Raton?
Uncover the real factors influencing Boca Raton's housing market and if properties are truly as affordable as they seem.
Homes in Boca Raton can appear to offer surprising value, especially considering the area’s reputation. This perception stems from market forces and property characteristics. The initial purchase price is only one component of the overall cost of homeownership.
Understanding Housing Supply and Demand
The real estate market in Boca Raton is shaped by housing supply and buyer demand. Recent data indicates an increase in active listings, with total inventory up by 23% from December 2023 to December 2024, reaching 2,552 active listings. This expanded inventory provides more options for buyers, influencing pricing. Despite this increase, overall supply remains 3% below pre-pandemic levels, suggesting low supply continues to pressure prices upward.
In July 2025, median listing home prices were around $585,000, with the median sold price slightly higher at $597,000. While average sale prices rose 23% to $1,127,794 in December 2024, the median sale price increased more modestly by 3% to $594,950. Homes are taking longer to sell, with average days on market increasing to 84 days in December 2024, up from 62 days the previous year. This indicates a less competitive market for buyers, contributing to the perception of more accessible pricing.
Property Type, Age, and Associated Ownership Costs
Property characteristics significantly influence purchase price and ongoing ownership costs. The city features diverse housing, including single-family homes, condominiums, and townhouses. In August 2025, the average list price for houses was approximately $2.8 million, while condos and co-ops averaged around $875,725. This highlights a substantial price difference between property types.
Older homes, especially those built before 2000, may have lower initial prices but often require higher maintenance and incur increased insurance premiums. The median year properties were built in Boca Raton is 1983.
Associated ownership costs can substantially affect a home’s true affordability. Homeowners Association (HOA) fees are common, especially in condominium and gated communities, and can be substantial for upscale properties. These fees cover shared amenities and maintenance, adding a recurring expense.
Property insurance, especially hurricane insurance, is a significant factor in Florida. The average cost of homeowners insurance in Boca Raton can range from $1,500 to $3,000 annually, with some data suggesting an average of $4,402 per year, significantly higher than the state average. Factors like home age, construction materials, and coastal proximity, along with flood zone designations, directly impact these premiums. Many areas of Boca Raton fall within FEMA-designated flood zones, potentially requiring additional flood insurance.
Local Economic and Demographic Factors
Boca Raton’s housing market is influenced by economic and demographic trends. The city’s population continues to grow, increasing by 1,164 between 2021 and 2023 to nearly 100,000 residents. Projections suggest continued growth, with an estimated population of 103,062 by 2025. This population increase drives housing demand.
The local economy is robust, with a low unemployment rate of 4.1% in June 2025. Key industries include healthcare, biotechnology, finance, technology, and tourism, contributing to a strong job market. From 2019 to 2024, Boca Raton’s job growth of 8.4% exceeded the national average of 3.7%. The average household income is $168,999, with a median of $102,722, indicating a prosperous resident base.
Property tax rates in Boca Raton are lower than in many other Florida cities, at $3.67 per $1,000 of taxable property value for the fiscal year beginning October 1, 2024. This lower tax burden can make homeownership appear more affordable, even as property values increase.
Geographic Variations Within Boca Raton
The perception of “cheap” housing in Boca Raton often overlooks significant price disparities across its neighborhoods. Housing values vary based on location, amenities, and proximity to desirable features. For example, Royal Palm Yacht and Country Club boasts a median listing home price of $16.1 million, while Boca Teeca offers a median listing price of $295,000.
Areas closer to the coastline, within top-rated school districts, or near the vibrant downtown command higher prices. Conversely, homes further inland, in older communities, or lacking direct access to premium amenities may be available at lower price points. This wide range of values contributes to the perception of affordability, as some properties are less expensive, particularly compared to the city’s most exclusive enclaves. The diversity in housing options means some areas reflect the city’s luxury image, while others cater to a broader range of budgets.