It’s Becoming More Affordable to Buy a Home in Sarasota and Lakewood Ranch

If you’ve been sidelined by rising home prices or waiting for the right market conditions, there’s encouraging news: buying a home in Sarasota, Lakewood Ranch, Manatee County, or Charlotte County is becoming more affordable.

Monthly mortgage payments are gradually decreasing, giving buyers a little breathing room after years of tight affordability. While this doesn’t mean homes are suddenly cheap, the shift is meaningful, especially for those looking to invest locally.

Sarasota & Lakewood Ranch Affordability Trends

One of the clearest ways to measure affordability is by comparing monthly housing costs to household income. Zillow research indicates that housing is generally considered affordable when it consumes 30% or less of monthly income, including mortgage, taxes, insurance, and maintenance.

For the past few years, Sarasota and Lakewood Ranch households were well above this threshold. But now, affordability is slowly improving:

Although affordability hasn’t fully returned to the 30% benchmark, the market is moving in the right direction.

What’s Driving Improved Affordability in Sarasota & Lakewood Ranch?

Several factors are helping buyers today:

1. Mortgage rates have eased.
   Rates in 2026 are near a three-year low, which directly lowers monthly payments.

2. Home price growth has slowed.
   While prices aren’t dropping, they’re increasing at a slower pace. This stabilizes monthly payments and makes homebuying more predictable.

3. Wages are rising faster than home prices.
   When income growth outpaces home price growth, buyers gain real purchasing power. Mark Fleming, Chief Economist at First American, explains:

“Affordability remains challenging, but for the first time in several years, the underlying forces are aligned toward gradual improvement…income growth exceeding house price appreciation will provide a boost to house-buying power even in a higher-rate world.”

These trends suggest that homebuyers in Sarasota, Lakewood Ranch, and surrounding areas will find affordability gradually improving through 2026.

Where Local Affordability is Improving Fastest

Some neighborhoods and communities in Sarasota, Manatee, and Charlotte counties are already seeing noticeable improvements in affordability.

Even if your target neighborhood isn’t on this map yet, working with a local expert can help you identify opportunities to buy before competition heats up.

Bottom Line

For the first time in several years, home affordability is moving in a positive direction in Sarasota, Lakewood Ranch, and neighboring counties. Understanding local market shifts is key to making a confident buying decision.

If you’re ready to explore your options and see how these trends affect your buying power, contact Darren Dowling today.

Beyond Realty
2170 Main Street, Suite 103, Sarasota, FL 34237
941-204-0493

Darren Dowling is a Sarasota-based real estate broker-owner specializing in Sarasota and Lakewood Ranch residential real estate, new construction, and relocation.