Buying property in the Florida Keys is more than a real estate transaction—it’s an investment in a laid-back island lifestyle surrounded by turquoise waters, world-class fishing, and year-round sunshine.
Whether you’re looking for a vacation home, rental investment, or full-time residence, the Keys offer a unique blend of tropical charm and strong property values.
In this guide, we’ll walk you through everything you need to know about buying a home in the Florida Keys—from the best areas and property types to financing, regulations, and market trends.
Why Buy in the Florida Keys?
The Florida Keys are a 125-mile island chain stretching from Key Largo to Key West, connected by the famous Overseas Highway.
Key benefits of owning property here include:
- Year-round warm climate and breathtaking ocean views
- Strong vacation rental market for short-term income potential
- Limited supply of land, which helps preserve long-term value
- Proximity to Miami, making weekend getaways easy
The Keys attract both domestic and international buyers, making it one of the most competitive real estate markets in Florida.
Popular Areas to Buy Property in the Florida Keys
Different parts of the Keys cater to different lifestyles and budgets. Here’s a quick breakdown:
Key Largo
- Known as the “Dive Capital of the World”
- Ideal for boating, fishing, and scuba diving enthusiasts
- Offers a mix of waterfront condos, single-family homes, and luxury estates
Islamorada
- Famous for sport fishing and upscale dining
- High demand for vacation rentals
- Luxury homes with private docks are common
Marathon
- Centrally located in the Middle Keys
- Family-friendly with good schools and parks
- Strong rental income opportunities
Big Pine Key & Lower Keys
- More laid-back and affordable compared to the Upper Keys
- Great for buyers seeking privacy and natural surroundings
Key West
- Historic architecture, vibrant nightlife, and cultural events
- Strongest short-term rental market in the Keys
- Higher property prices due to high demand
Types of Property in the Florida Keys
- Waterfront Homes – Premium prices, but unmatched views and boating access
- Canal-Front Properties – More affordable than open-water homes, but still with dockage
- Condos & Townhomes – Lower maintenance, often with resort-style amenities
- Vacant Land – Rare due to building restrictions, but possible in certain zones
Special Considerations for Buying in the Florida Keys
1. Flood Zones & Insurance
Much of the Keys is in a flood zone, which means you’ll likely need flood insurance in addition to standard homeowners’ coverage. Insurance costs can vary widely based on elevation and location.
2. Building & Permit Restrictions
The Rate of Growth Ordinance (ROGO) limits new construction in the Keys to protect the environment. This makes existing homes highly valuable but also means vacant land can be tricky to develop.
3. Hurricane Preparedness
Hurricane-resistant building codes are strict here. When buying, look for properties built to post-2002 building standards for better storm protection.
4. Vacation Rental Regulations
Some municipalities have strict rules for short-term rentals. Always confirm if your property is eligible for platforms like Airbnb or VRBO.
Financing Property in the Florida Keys
While cash offers are common in competitive markets like the Keys, financing is available. Local lenders are often more familiar with flood zone issues, insurance requirements, and ROGO restrictions than national banks. Consider getting pre-approved before starting your search.
Market Trends in 2025
The Florida Keys real estate market remains strong due to limited inventory and ongoing demand from remote workers, retirees, and investors. While prices have stabilized compared to the post-pandemic surge, the scarcity of available land keeps values resilient.
Tips for Buying Property in the Florida Keys
- Work with a local real estate agent who specializes in Keys properties
- Inspect thoroughly—especially for wind and water damage
- Check rental potential if you plan to generate income
- Factor in insurance and HOA fees to your budget
- Act quickly—well-priced homes often sell in days
Final Thoughts
Buying property in the Florida Keys offers more than just a home—it’s a chance to embrace a slower pace of life, surrounded by natural beauty and a welcoming community. With limited supply and high demand, the Keys remain one of Florida’s most desirable real estate markets.
Whether you’re searching for a Key West historic cottage, a Marathon waterfront villa, or a Key Largo diving retreat, the right property can serve as both a dream getaway and a solid investment.