Is Lakewood Ranch Too Expensive? A Cost of Living Comparison to NY & NJ

by Adam Miller

Is Lakewood Ranch Too Expensive? A Cost of Living Comparison to NY & NJ

Relocating to Florida, and specifically Lakewood Ranch, is an exciting opportunity for many homebuyers looking for a better quality of life. But one common concern that potential residents have is the cost of living. While Florida is known for its affordability compared to states like New York and New Jersey, Lakewood Ranch is an affluent, master-planned community that offers premium homes, top-tier amenities, and an unparalleled lifestyle. So, how does the cost of living truly compare? Let’s break it down by looking at housing, taxes, insurance, and everyday expenses.

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Housing Costs: What’s the Real Difference?

Housing is often the biggest expense when moving to a new area, and while Lakewood Ranch is considered a high-end community, it still offers significant savings compared to the Northeast.

New York City (NYC): The median home price in Manhattan is around $1.2 million, and even in the boroughs like Brooklyn and Queens, prices often exceed $800,000 for a modest home. Suburban areas like Westchester County or Long Island have median home prices of $700,000 to $900,000.
New Jersey: In areas like Bergen County or Essex County, home prices frequently range from $600,000 to over $1 million for a standard single-family home.
Lakewood Ranch, FL: The median home price in Lakewood Ranch sits around $600,000, with options ranging from $400,000 townhomes to multi-million-dollar luxury estates. The key difference? You get newer construction, modern amenities, and more space for the same price—or less—than in many NY/NJ locations.

Additionally, new construction homes in Lakewood Ranch often include energy-efficient features that reduce long-term costs, while Northeast homes, especially older ones, tend to come with maintenance and upgrade expenses.

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Property Taxes: A Major Savings Opportunity

One of the biggest financial advantages of moving to Florida is the significant reduction in property taxes. Here’s a comparison:

New York: Property tax rates vary, but in places like Westchester County, homeowners can expect to pay 2.5% to 3% of their home’s value annually in property taxes. That means a $700,000 home could come with a $17,500+ annual tax bill.
New Jersey: New Jersey has some of the highest property taxes in the country, averaging around 2.2% of a home’s value. A $600,000 home could mean a $13,000+ annual tax bill.
Lakewood Ranch, FL: Florida’s property tax rates are significantly lower, averaging 0.83% of a home’s assessed value. That means a $600,000 home in Lakewood Ranch might have an annual tax bill of $5,000 to $6,000—a fraction of what Northeast homeowners are used to paying.

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No State Income Tax: A Game-Changer

One of Florida’s biggest financial perks is no state income tax. In contrast:

New York: State income tax rates range from 4% to 10.9%, with NYC adding 3.9% local tax.
New Jersey: State income tax rates range from 1.4% to 10.75%.
Florida: 0% state income tax—meaning more money stays in your pocket.

For someone earning $150,000 per year, that could mean savings of $10,000 or more annually just by living in Florida instead of NY/NJ.

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Homeowners Insurance: A Common Concern

While Florida homeowners insurance rates are generally higher due to hurricane risks, it’s still often comparable to or lower than insurance costs in the Northeast, especially in high-tax areas.

NY/NJ Homeowners Insurance: Depending on the location, annual premiums typically range from $1,500 to $4,000, with additional costs for flood insurance in coastal areas.
Lakewood Ranch Homeowners Insurance: Florida insurance rates can range from $2,500 to $5,000 annually, but many Lakewood Ranch homes are built to modern hurricane-resistant standards, which can lower premiums. Additionally, the community is inland, reducing flood insurance requirements.

Everyday Expenses: Groceries, Utilities & More

Living in Lakewood Ranch also comes with everyday cost savings compared to NY/NJ.

Groceries: Food costs in Florida are generally 5-10% lower than in New York and New Jersey, particularly for fresh produce and seafood.
Utilities: Electricity bills in Florida average around $150 per month, compared to $200+ in NY/NJ. No heating bills in winter is another major savings factor.
Gas Prices: Florida’s gas prices are significantly lower, averaging 30-50 cents per gallon less than in NY/NJ.
Dining & Entertainment: Dining out in Florida is typically 15-20% more affordable, with lower menu prices and no additional NYC-style city taxes.

The Bottom Line: Lakewood Ranch is a Smart Financial Move

While Lakewood Ranch is considered a premier community in Florida, it remains far more affordable than comparable locations in New York and New Jersey. The combination of lower property taxes, no state income tax, reduced cost of living, and better overall home values makes relocating to Lakewood Ranch a financially smart decision.

If you’re considering making the move, let The 941 Lifestyle Group help you find the perfect home that fits your budget and lifestyle. Contact us at 941-233-9722 or email info@The941LifestyleGroup.com to learn more about living in Lakewood Ranch.

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