Moving to Sarasota in 2026: Is It Still Worth It for High-Tax State Buyers?

Moving to Sarasota in 2026: Is It Still Worth It for High-Tax State Buyers?

If you're considering relocating to Sarasota from states like New York, New Jersey, California, or Illinois, you've likely heard the same thing:

“Sarasota isn’t cheap anymore.”

That’s true but it’s also incomplete.

Sarasota is no longer a low-cost alternative. However, for many buyers in 2026, it represents a strategic financial shift especially when you compare total tax burden, long-term equity growth, and overall quality of life.

Let’s break down the real numbers.

Sarasota Home Prices in 2026

The median home price in Sarasota is approximately $474,700, reflecting a modest adjustment from peak pricing levels.

In absolute terms, that may not feel “cheap.” But smart buyers don’t evaluate price alone they evaluate total cost of ownership.

And that’s where Florida stands apart.

The Tax Advantage: A Real Relocation Scenario

Let’s look at a common situation.

A couple in their early 60s earning $250,000 per year is considering relocating from Westchester County, NY to Lakewood Ranch in the Sarasota area.

In New York:

• State income tax on $250,000: ~$17,000 annually

• Property tax on an $800,000 home: ~$18,000 annually

• Total estimated annual tax burden: $35,000+

In Florida:

• State income tax: $0

• Property tax on a $600,000 home: ~$9,000 annually

• Total estimated annual tax burden: ~$9,000

Estimated Annual Tax Savings:

~$26,000 per year

Over 10 years of retirement:
$260,000 retained instead of paid in taxes

That savings alone could fund a 20% down payment on a Sarasota-area property.

This is why many relocations to Florida are strategic financial decisions not emotional ones.

Where Should You Live in the Sarasota Area?

Not all communities are created equal. Here’s how they break down by lifestyle and budget.

1. Lakewood Ranch – Modern, Master-Planned Living

Median Single-Family Price: $600,000–$700,000
HOA Fees: $200–$400/month
Insurance: Typically lower (new construction, outside major flood zones)

Best For:

• Families

• Active adults

• Buyers wanting new construction

• Those prioritizing storm-resistant building codes

Most homes are built post-2002 with hurricane impact windows and reinforced construction, many engineered to withstand 150+ mph winds.

2. West of Trail – Historic, Walkable Sarasota Living

Located west of U.S. Route 41, this is one of Sarasota’s most desirable lifestyle areas.

Entry Price: Around $1.5M and up
Insurance: Higher (older homes, closer to water, potential flood zones)

Best For:

• Empty nesters

• Lifestyle buyers

• Walkability to downtown

• Proximity to beaches and hospitals

You’re paying a premium for location and lifestyle not square footage.

3. Wellen Park – Growth & Value in South County

One of the fastest-growing areas in Sarasota County.

Median Prices: $450,000–$650,000
HOA Fees: $150–$350/month
Construction: Primarily new builds

Best For:

• Value-focused buyers

• Young families

• Price-conscious relocators

Modern amenities, new infrastructure, and strong appreciation potential make this a popular alternative to higher-priced central Sarasota.

Renting vs Buying in Sarasota (2026 Market)

Mortgage rates are hovering around 6%, which leads many relocating buyers to ask:

“Should I rent first?”

Current Rental Market:

• Single-family homes: $2,800–$4,500/month

• Condos: $2,200–$3,500/month

• Limited inventory for high-quality properties

If you're paying $3,500/month in rent:

• That’s $42,000 per year

• Zero equity

• Subject to annual rent increases

Buying Example:

$550,000 purchase price
20% down = $110,000
30-year mortgage at 6%
Principal & Interest: ~$2,640/month
Estimated total with taxes, insurance, HOA: ~$3,800/month

For roughly $300 more per month, you:

• Build equity

• Lock in housing costs

• Qualify for Florida’s homestead exemption

• Maintain refinancing flexibility if rates decline

For long-term residents, buying often provides stronger financial positioning than renting.

Hurricanes & Insurance: What’s Actually Changed?

Florida experienced major hurricane seasons between 2022–2024. That understandably raised concerns.

However, several stabilizing factors have emerged:

• Citizens Insurance rates have decreased on average

• Multiple private insurers have entered the Florida market

• Tort reform has reduced litigation-driven premium spikes

• New construction standards are significantly stronger

Building Code Reality:

Homes built after 2002 include:

• Hurricane impact windows

• Reinforced roofing systems

• Enhanced wind mitigation

If purchasing a post-2010 home in Flood Zone X (lowest flood risk), annual insurance premiums often range between $2,000–$3,500 far lower than many out-of-state buyers expect.

Is Moving to Sarasota in 2026 Worth It?

For buyers relocating from high-tax states, the numbers often make the move compelling. When you factor in:

• Zero state income tax

• Lower property taxes

• Homestead protections

• Strong building codes

• Long-term equity growth

• Quality of life improvements

Sarasota becomes less about “cheap housing” and more about smart financial repositioning.

The real question isn’t: “Is Sarasota affordable?”
It’s: “Does Sarasota align with my 10-year financial and lifestyle plan?”

Schedule a Zoom consultation or in-person meeting to evaluate your numbers and determine which community fits your long-term strategy.

Work With a Sarasota Relocation Specialist

If you're considering a move to Sarasota or Lakewood Ranch, a customized relocation plan is critical.

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.