Key West, FL
Housing Market
Key West's housing market is dynamic, with home prices and demand constantly shifting. Houzeo's housing market report monitors these fluctuations, providing real-time insights into Key West's supply and demand trends. Our report equips you with all the information you need to make well-informed decisions.
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Buy or SellKey West Housing Market Overview
The Key West real estate market is characterized by its unique island charm. It features a blend of historic Conch houses, luxury waterfront properties, and tropical bungalows that attract vacation home buyers as well as permanent residents. Key West’s housing market has shown remarkable strength in recent months. The median home price has surged by 19.5% YoY to $1,135,000. Key West homes for sale typically remain on the market for 80 days, unchanged from last year. Over the years, the Key West market has maintained its status as a premium real estate destination due to its limited land availability, strict development regulations, and continued appeal as a tropical paradise.
Median Sale Price
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Key West Housing Supply
Key West presents a specialized market for real estate investors due to its limited geographic footprint and strong vacation rental potential. The number of homes for sale in Key West has increased to 331—a modest 3.4% YoY rise. However, new listings have decreased by 14.6% YoY, with only 76 fresh properties entering the market. The Key West housing supply currently stands at 8.9 months citywide, down 0.5 months from the previous year. While still a buyer's market, the decreasing months of supply point to a gradual shift toward more balanced conditions.
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Key West Housing Demand
The Key West housing market shows signs of increasing competition in certain segments. 5.4% of Key West houses are selling above their list price, up by 5.4 percentage points from last year when no homes sold above the asking price. On the other hand, price reductions have increased to 35.6% of all Key West housing listings, a 26.9% rise from last year. The sale-to-list price ratio has decreased to 93.7%, down 1.3 percentage points YoY. This means that sellers are now getting about 6.2% below their asking prices on average.
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Strong
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Balanced
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Buyer’s Market
Seller’s Market
Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.
Key West Housing Market: When to Buy or Sell?
Key West's housing market traditionally operates on different seasonal cycles than mainland Florida's real estate market, with winter and early spring typically being the most active periods. The near 9 months of supply far exceeds the balanced conditions of the US housing market (5 to 6 months), which signals that buyers have more negotiating power. However, the 19.5% price increase and rising sales volumes indicate competition for certain property types.
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Frequently Asked Questions
How have Key West real estate prices changed over the past year?
Over the past year, median home prices in Key West have increased dramatically. The median price of a house in Key West now sits at $1,135,000, a 19.5% increase from the previous year. This appreciation rate significantly outpaces most Florida markets and the national average. Consider using our free home value estimator to assess your property's current market value to know where you stand.
What are Key West real estate market predictions for 2025?
The Key West housing market is expected to maintain its strong position throughout 2025, though possibly with a more moderate price growth than the current 19.5% YoY increase. Limited inventory, strict development regulations, and the area's enduring appeal as a vacation destination support its continued price stability. Key West's unique island economy and limited housing insulate it from some of the challenges faced by the broader Florida housing market .
What's the average home price in Key West?
The average house price in Key West varies significantly based on factors like property type, size, and location. While the median home price stands at $1,139,000, condos average $769,000. Historic homes in Old Town or waterfront villas in Key West Florida can exceed the median price. If you're looking for options, you can explore homes for sale in Key West, FL.
Is this a good time to buy a home in Key West, FL?
Current Key West real estate market conditions present a mixed picture for potential buyers. While the 8.9 months of supply technically indicates a buyer's market, the 19.5% YoY price increase suggests strong ongoing demand.
How is the housing market right now in Key West?
The housing market in Key West shows strong price appreciation with a 19.5% YoY increase, coupled with rising sales volumes (up 8.8%). However, the 8.9 months of supply and increase in price reductions (35.6% of all listings) indicate that the market is not universally competitive.
When will the Key West housing market cool down?
According to housing market forecasts, the Key West real estate market may see more moderate price growth later in 2025, as the current 19.5% appreciation rate is likely unsustainable long-term.
How to buy a property in Key West Florida?
The process of purchasing a property in Key West Florida should begin with establishing a clear budget and securing a mortgage pre-approval. Given the high median price of $1,135,000, you may need to consider jumbo loans. Then, search for houses for sale in Key West, submit offers, complete inspections (with particular focus on hurricane resilience and flood zones), and complete the closing process.
How can I list my home for sale in Key West, FL?
You can list your home for sale with a Flat Fee MLS Florida listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location.
What is the average mortgage rate for buyers in Key West?
The average mortgage rate for buyers in Key West currently fluctuates between 5.9% and 6.7%. However, given the high median price, many Key West purchases require jumbo loans, which may carry slightly different rates. These depend on market conditions and the borrower's credit score. Always check current rates with multiple lenders.
How much does it cost to live in Key West?
The cost of living in Key West is approximately 48% higher than the national average, and 44% higher than Florida’s cost of living. Housing costs drive much of this difference, with prices approximately 200% above the US median. The typical single-family home in Key West costs over $1.6 million, with significant premiums for historic or waterfront properties. Other necessities such as groceries and transportation also exceed national averages due to the island's remote location.
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