For decades, Florida has been a magnet for retirees chasing sunny skies, warm winters, and an active lifestyle. But in 2025, the reality of retiring in the Sunshine State is shifting and not always in ways people expect.
To dig deeper, I sat down with Mark Gilbo, a seasoned real estate broker with years of experience helping retirees navigate the Florida housing market. We discussed the changing cost of retirement, the biggest financial surprises, and a housing “loophole” that could save thousands.
“I think so,” Mark said. “There’s a lot of unforeseen expenses coming from COVID that people are now experiencing after the fact. Towns and villages spent the stimulus money, and now they’re trying to recoup it. It’s tougher for someone on a fixed income.”
In 55+ communities — where many residents live on $4,500–$6,000 a month — the pinch is noticeable. Even small changes, like fewer rounds of golf or fewer dinners out, are signs of rising costs. While the trend isn’t exclusive to Florida, the state’s most popular retirement areas are feeling the pressure.
Surprisingly, it’s not hurricanes or high insurance premiums for many retirees — at least not in Central Florida.
“In The Villages, insurance is still OK because we don’t get hit too badly by storms,” Mark explained.
Instead, it’s prices. “The Villages are anywhere between 10 to 30% overpriced compared to other communities, and they’ve held their value better. Prices haven’t corrected enough based on where rates have gone,” he said. “When rates go up to 7%, prices need to come down to keep payments the same — but that hasn’t happened. This is the first time in history we’ve seen that disconnect.”
Mark calls it looking for “properties that need help.” He’s talking about foreclosures, bank-owned homes, and tax defaults — a corner of the market many buyers overlook.
“I don’t like to take advantage of someone in a tough spot,” he emphasized, “but when you can help them out of a bad situation, it’s a win-win. I used to manage over 150 foreclosures a year for large banks, and most people were thankful to have a solution.”
With more foreclosures expected in the coming years, retirees who know where to look — and act quickly — could secure a home well below market value.
“Foreclosure.com is a great tool,” Mark noted. “It covers all 50 states, and you can see properties before they hit the open market.”
While bargains are rare in prime spots, Mark says opportunities still exist — especially with rentals and new builds.
“Rentals are great deals right now because there’s so much inventory. Builders are offering incentives like reduced rates and tens of thousands in upgrades. Just be careful, because sometimes those incentives mask an overpriced home,” he cautioned.
Smaller builders around The Villages are still active, and for buyers willing to look beyond the most famous communities, there’s value to be found.
Taxes are a big reason. “You get a pay increase the day you move here,” Mark said. “In New York, we have income tax. In Florida, you don’t. That’s money in your pocket without doing anything.”
For retirees leaving high-tax states like New York, New Jersey, Illinois, or Wisconsin, even Florida’s rising home prices feel manageable. “People say, ‘I’ll take a few hot days and some mosquitoes for that tax break.’ And honestly, mosquitoes aren’t bad here compared to up north,” he laughed.
The key, according to Mark, is looking beyond the MLS.
“A lot of people call a local broker and only see what’s available in that system. With Foreclosure.com, you can search any county in any state and find properties that aren’t on the open market yet.”
From there, it’s about outreach.
“Send a letter, skip trace for contact info, keep an eye on the property. At some point, it’ll go to foreclosure or tax auction, and you may be able to buy it before it gets there — while helping the owner in the process.”
Florida’s retirement dream is still alive, but in 2025 it takes more planning — and a sharper eye — to make it work financially. Rising costs, stubbornly high home prices, and a shifting market mean retirees need to be more strategic than ever.
For those willing to explore overlooked opportunities like distressed properties and less-hyped communities, the Sunshine State can still deliver the warm, affordable retirement so many envision.
As Mark put it, “You just have to know where to look — and be ready to act when the right deal comes along.”
If you’d like to explore current opportunities in Florida or get alerts about off-market properties, visit Foreclosure.com and get FREE foreclosure email alerts.
Learn more about Florida real estate with Mark Gilbo by visiting Gilbo Realty.
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