The Real Cost of Living in Pensacola, FL

What is the cost of living in Pensacola, FL? Here is what it will cost you to move to Pensacola. 

As you searching for your next home or vacation destination? Then we hope Pensacola is at the top of your list. Pensacola has been known as one of the best places to live in Florida since it has beautiful real estate and everything you need, whether you are a young professional, a small family, or a new retiree. 

Overall, Pensacola is home to some of the best beaches in Florida and the Southeastern United States for its clear water and warm white sand. As you join the other 53,845 residents who love Pensacola, you'll find that the beautiful seaside city has much more to offer than just its breathtaking beaches. You can enjoy its lively downtown, elegant restaurants, exciting bars, and, most importantly, its low cost of living.

Pensacola has so many excellent opportunities and fun things to do for residents to enjoy year-round. There are endless outdoor activities, great employment opportunities, and amazingly-rated healthcare that is perfect for any resident. Even if you decide you are not ready to move, Pensacola is a fantastic vacation destination for you and your closest friends, family, or loved ones. 

If you move to Pensacola, there are many important factors to remember as you decide on your new home, such as taxes, transportation, and healthcare. We have compiled the perfect guide to find all of the correct information quickly regarding the cost of living in Pensacola, Florida. 

Here is what you need to know about the cost of living in Pensacola 

Cost of Living

Finding an ideal new home can be extremely overwhelming; considering all the factors is essential. If you want to move to an affordable city, Pensacola is the one for you. The cost of living in Pensacola is 6% lower than the state average and 5% lower than the national average. In any city, the cost of living is calculated by combining several necessary expenses. Many other southern states have a low cost of living, like New Mexico. 

Although residents tend to earn less than the average, the annual salary in Pensacola is $48,311. However, lower taxes and housing prices help residents save tons of money on other essential activities. 

Generally, almost all expenses in Pensacola are lower than the national and state averages. Here, you can see the substantial costs and how they compare to the rest of the state and the U.S.

Cost of Living Item	Compared to State's Average	Compared to National Average
Housing	13% lower	9% lower
Utilities (Monthly)	16% higher	17% higher
Food	5% lower	2% lower
Healthcare	6% lower	10% lower
Transportation	9% lower	9% lower
Good & Services	5% lower	7% lower

Income

As you prepare to move to any new location, finding a job that can support your life can be stressful. Over the last year, Pensacola has seen a job market increase of 1.9%. Over the next ten years, future job growth is projected to be 42.0%, much higher than the U.S. average of 33.5%. 

The median household income between 2017 and 2021 was $59,119, higher than the U.S. average of $53,400. This makes the area much more affordable for families with dual incomes looking for a place to relocate. 

The major industries in Pensacola are aerospace and defense, cyber security, advanced manufacturing, and professional services. As a result of the significant military presence in the area, many jobs come from the naval station in Pensacola. Pensacola is a great place to find a good paying job based on its stable economy and low cost of doing business. 

Food and Grocery Costs

Compared to the national average, food prices in Florida are a bit higher. Luckily, in Pensacola, grocery prices are 2% lower than the national average. This may seem like a small amount, but that 2% can go a long way and save you a lot of money in the long run. 

Compared to the state average, Pensacola residents spend 5% less on food overall. Food prices vary around the country and are an essential but often forgotten expense. On nights when you are too tired to cook at home, you can enjoy one of Pensacola's top-rated restaurants downtown or by the beach. 

Fresh food is necessary and can become one of your most expensive monthly expenses. Here are the prices of the most commonly purchased items at a grocery store in Pensacola. 

Grocery Item	Price
Loaf of Bread	$3.81
Gallon of Milk	$2.39
Carton of Eggs	$2.21
Bunch of Bananas	$3.30
Hamburger	$5.05

Check out these top ten best restaurants in Pensacola, FL. 

Transportation

Located along the Florida seaside, Pensacola is a significant vacation spot. The city has an international airport, making traveling in and out of the city easy. You can catch a bus, cab, or Uber from the airport. 

Pensacola also has an affordable and trustworthy transit complex, the Rosa L. Parks Transit Complex, which runs Monday through Friday. Buses also run at varying times on Saturday and Sunday.

As you plan your day in Pensacola, make sure to take advantage of these great transportation options, as they are wheelchair accessible and include bike racks for your convenience. Make sure to check out the bus schedule before your trip. 

The city is relatively spread out, meaning the majority is not walkable. Although, the downtown area is highly walkable and offers beautiful sites as you walk the streets by the marina. Don't worry if your legs get tired. There are also trolleys around town to help you learn more about the city or give you a lift. The beach is about a 20-minute drive from downtown, with unique opportunities to boat around the crystal-clear water. 

Housing Costs

Housing costs in Pensacola, including renting or buying, are significantly lower than the state and national averages. This is a huge reason why Pensacola is so affordable: housing costs can be the most significant expense for most American households. 

Housing costs can vary depending on where you plant your roots in Pensacola, as beachfront properties can be expensive and drive up the median home price. The median home price in Pensacola is $411,647 as of July 2023. Luckily, houses in Pensacola stay on the market for an average of 71 days, allowing you all the time you need to find your perfect neighborhood. 

Many people from New York, Chicago, and Boston decide to move to Florida for the beautiful Southern weather. Buyers and renters mainly seek single-family homes, apartments, and waterfront homes. Make sure you save time and start your search for the best house. 

There are also many beautiful and affordable homes for sale around Pensacola in places like Gulf Breeze, Ferry Pass Heights, and Mills Lakes Estates. 

Taxes

Florida has many outstanding qualities, such as its beautiful beaches, amazing food, low cost of living, and, most importantly, no income state tax. This allows you to use that extra cash usually taken from your paycheck in any other state. 

Pensacola has a higher sales tax rate than the rest of the state. Pensacola's sales tax is 7.5 percent, and Florida's is 6 percent. 

While you think about where to move next, take into account different tax laws and percentages, as this can impact the individual cost of items and what you will pay in taxes at the end of the year.

Here are some critical tax percentages for Pensacola, FL:

• Florida's corporate income tax is 5.5%
• Florida does not tax capital gains as income
• Florida does not charge inheritance tax 

Healthcare

Healthcare is another often overlooked expense, although it is imperative to understand the cost of healthcare in any new area. Prices can vary depending on what doctor you plan on visiting and the specialized service you need.

Here are the prices for typical specialized services in Pensacola, FL. 

Service	Average Price
Doctor	$105.35
Dentist	$102.96
Optometrist	$76.87

It is important to note that prices may vary even more depending on your specific type of insurance plan, where you go, and the service you need. 

FAQ: Cost of living in Pensacola, FL

Here are some commonly asked questions about living in Pensacola, FL. 

Is it expensive to live in Pensacola?

Surprisingly, the cost of living in Pensacola is 6% lower than the state average and 5% lower than the national average. This makes living in Pensacola much less expensive than other cities around Florida.

Is Pensacola, Florida, an affordable place to live?

Housing prices, which include buying and renting, are genuinely affordable. The housing is even 9% cheaper than the U.S. average. 

What's the minimum wage in Pensacola?

In September 2023, the minimum wage is aimed to be $12.00 an hour and is projected to go up $1 each year. This makes it much more affordable compared to other states around the nation. 

Is Pensacola an excellent place to live?

With a population of 53,845, Pensacola is known as one of Florida's best places to live. It has fantastic beaches, an affordable housing market, great job opportunities, and many fun activities. The city offers residents anything and everything they could need.

Why are people moving to Pensacola?

Most notably, Pensacola is a beautiful and affordable place to live. There are many affordable neighborhoods, excellent schools, and just an overall great atmosphere. The city is also a well-known vacation spot for families and spring break. 

Moving to Pensacola - Last Thoughts

Deciding which area is perfect for you can be overwhelming when so many factors come into play. Learning about the cost of living is exceptionally important as you decide where to plant your roots next. Florida has many affordable cities and towns, including Pensacola, Destin, and Cape Coral. 

Pensacola is an excellent option for young professionals, retirees, and small families. It has low housing costs, an affordable cost of living, a healthy job market, fantastic weather, and the best beaches around. You couldn't pick a better city if you tried. 

If you want to learn more about Pensacola homes for sale, you can contact one of our Real Estate Specialists to help you search for your home. We have plenty of helpful guides about many cities and states nationwide that will give you all the information you need before you move. 

Our team at UpHomes is dedicated to helping you find the perfect home for your budget, family, and lifestyle and giving you all the information you need to know about the area. Please don't hesitate to reach out to us, as we are excited to help you with any questions and concerns about real estate if you are moving to Florida.