Nationwide inflation is on the rise and many Americans are looking at their state policy makers for solutions to rising prices. In South Florida, it is no different.
On June 30th, Gov. Ron DeSantis signed Florida’s 2025-2026 budget, addressing issues such as tax cuts, pay increases for teachers and law enforcement, a reduction in state spending and debt, as well as lessening some expenses Florida’s condo owners face.
DeSantis highlighted $2 billion in tax relief through permanently repealing the business rent tax and expanding, renewing and instilling new tax holidays, aiming to “help keep more money in the pockets of Florida’s families,” he said last month. “The reality is the economy is cyclical by nature … you see it in real estate, in equities, you see it in different things.”
Florida’s cost of living has steadily risen over the past 10 years, resulting in the state currently being 2% above the national average; however, major cities such as Miami and Fort Lauderdale are seen to be 21 to 22% over the national average. Although some initiatives in this budget aim to help Florida residents battle this issue, the state is still seeing some of the highest inflation rates in the country. This is due to significant population growth, increasing the demand for real estate, goods and services.
A report by the U.S. Bureau of Labor Statistics conducted in April 2025 has shown that area prices in Miami, Fort Lauderdale and West Palm Beach have increased 2.2 percent this year. Items such as groceries, housing, utilities and homeowners’ insurance are the most expensive.
“Here in Florida, we have two main problems, housing and insurance,” Dr. Omid Asadollah, a macroeconomics professor at Florida International University, said. “Yes, minimum wages have increased, but if you want to compare that with the housing costs, it is not a lot. The state could decrease taxes for low-income households and in cases of auto insurance, the state can allocate more funds to public transportation.”
Remy Tejeda, a server at True Food Kitchen Miami and a sales representative for Ion Corp, stated “as long as I keep my two jobs, it is not hard to sustain myself. .. My greatest expenses are housing, insurance and my vehicle loan.”
The 54-year-old Tejeda, however, is not the only one dependent on his paycheck.
“I cover all of my daughter’s car insurance and maintenance, her meals, and part of her board at her college,” Tejeda added. “Any additional costs besides her scholarship, I cover and my mother is elderly. So, I also handle any repairs on the house and food as well.”
Tejeda is just one of the many South Floridians whose income relies on tourism, another factor that heavily influences the state’s economy and residents’ livelihood. Florida’s peak tourism season — December to April — is when the state can see increased cash flow.
During the rest of the year, businesses like airboat rides in the Everglades, “booze cruises” along the coast, and other hospitality-based occupations see decreased visitors and cash flow.
“The structure of Miami is based on tourists,” said Asadollah. “People who work for restaurants or hotels didn’t see much increase in their salaries. They didn’t increase enough to compensate for costs. As I see the trend, I guess [the cost of living] increases, but it really depends on the government. We cannot say anything without knowing their polices.”
