Rent vs. Buy in Palm Beach County: What’s the Smarter Move in 2025?

If you’re weighing the pros and cons of renting versus buying in Palm Beach County, you’re not alone. With rising rents and fluctuating mortgage rates, many South Florida residents are asking the same question: Is it still worth it to buy a home?

The answer depends on several personal and market-driven factors—including how long you plan to stay in the home, your financial stability, and the current cost of ownership. But before jumping to conclusions, it’s important to evaluate the true cost of both renting and owning—beyond just your monthly payments.

Fortunately, you don’t have to do the math on your own. This helpful Rent vs. Buy Calculator can help you compare long-term costs and see which option makes more financial sense for your lifestyle.

The Full Picture: Ownership Costs Beyond the Mortgage

Let’s take a closer look at what it would cost to buy a home in Palm Beach County using a $500,000 purchase price as an example.

Down Payment & Mortgage

If you’re putting 10% down ($50,000), your loan amount would be $450,000. With a 30-year fixed-rate mortgage at 6.5%, your monthly principal and interest (P&I) payment would be approximately $2,844.

Property Taxes

Property taxes in Florida average around 1.0% of a home’s value. For a $500,000 home, you can expect annual taxes of about $5,000—or $417 per month.

Homeowners Insurance

Given South Florida’s risk profile (hurricanes, flood zones, etc.), insurance tends to be higher than national averages. Many homeowners in Palm Beach County pay between $3,000 and $5,000 annually. For this example, we’ll use a midpoint of $4,000, or about $333 per month.

Mortgage Insurance

If you put down less than 20%, most lenders will require private mortgage insurance (PMI). On a $450,000 loan with a 10% down payment and a strong credit score, your PMI might add approximately $100–$150 per month, depending on the provider and policy.

Estimated Total Monthly Cost to Own:

• Principal & Interest: $2,844

• Property Taxes: $417

• Homeowners Insurance: $333

• Mortgage Insurance: $125 (average)

Estimated Monthly Total: $3,719

Additional Costs of Ownership

Closing Costs:

Expect to pay 3%–5% of the loan amount in closing costs. On a $450,000 loan, this equates to $13,500–$22,500. These are typically one-time costs, but they should be factored into your financial planning.

Maintenance and Repairs:

General upkeep on a home typically runs about 1%–2% of the property value per year. For a $500,000 home, plan to set aside $5,000–$10,000 annually for maintenance and unexpected repairs.

Future Appreciation & Equity Growth:

Real estate in Palm Beach County has seen steady appreciation. If your home appreciates at a conservative 4% annually, your $500,000 home would gain approximately $20,000 in value after one year—plus the equity you gain by paying down your mortgage.

What About Renting?

Renters in Palm Beach County are facing steep increases, especially in desirable neighborhoods. A comparable rental property may cost anywhere from $2,800 to $3,500+ per month. However, renters may also need to factor in:

• Application fees

• Security deposits

• Renter’s insurance

• Pet fees

• Parking and utility costs

• Annual rent increases

These recurring and incidental costs can significantly raise the total cost of renting, even if your base rent is lower than a mortgage payment.

The Bottom Line: Should You Rent or Buy?

The decision comes down to your long-term plans and financial readiness. Buying a home typically becomes more cost-effective the longer you own the property—thanks to equity building, appreciation, and potential tax benefits.

If you plan to stay in Palm Beach County for five years or more, and you’re financially prepared for the upfront costs, homeownership may offer substantial long-term advantages.

Want to see what the numbers look like based on your situation?

Use this Rent vs. Buy Calculator to get a personalized analysis.

Ready to Make a Move?

If you’re considering buying a home in Palm Beach County, I can help you evaluate the market, understand your financing options, and find a home that fits both your lifestyle and budget. Let’s talk through your goals and make a plan that works for you.