Key West, FL Housing Market
AI-powered market intelligence for the Key West-Key Largo, FL metro area.
PropertyIQ Scores
Key West, FL Market Analysis
Market Overview
Key West presents as a weak housing market, reflected in a PropertyIQ Score of 19 out of 100. The median home value is $959,889, more than two and a half times the Florida state median home value of $375,470. The rent index is $3,601, well above the state benchmark of $1,669. Median household income is $87,738, which is above the state median of $74,568, but the gap in incomes is much smaller than the gap in home values and rents. As a result, the median home value is roughly 10.9 times median household income locally, compared with about 5.0 times at the state level. That affordability strain places the market in a weak position even though incomes and rents are above average.
Activity data reinforces the weak positioning. Median days on market is 110 days, and 13.5% of listings have had a price cut. There are 1,226 homes for sale, giving buyers meaningful inventory. Home value momentum is modest: 2.16% over 12 months and 0.15% over three months. The posted year-over-year home value change is $-6, essentially flat. The unemployment rate is 4.6%, equal to the state benchmark, so local labor conditions do not appear to be the main drag. Population growth is not available in this dataset.
Key Trends
The first trend is an affordability gap driven by housing costs. The median home value of $959,889 is far above the state median of $375,470, while the median household income of $87,738 is only about 18% above the state median of $74,568. Rents show a similar pattern: the local rent index of $3,601 is more than double the state rent index of $1,669. This mismatch means local incomes do not comfortably support the median home price.
The second trend is cooling price momentum. The 12-month home value momentum of 2.16% is modest, and the 3-month momentum of 0.15% is nearly flat. The year-over-year home value figure of $-6 also points to stagnation rather than meaningful decline. Together, these numbers suggest that home values are not rising at a pace that would offset the high cost of entry.
The third trend is slower sales activity. A median of 110 days on market is elevated, and 13.5% of listings have had a price cut. With 1,226 homes for sale, supply is high enough that sellers are waiting longer and adjusting prices. This is a more buyer-friendly environment than a fast-moving seller’s market.
The fourth trend is a two-sided rental and income picture. The rent index of $3,601 is high relative to the state, which may support rental demand. However, the unemployment rate is 4.6%, matching the state average, and population growth is not available. The high rent level has not translated into strong home value momentum in the sales market.
Who Is This Market For
This market is unlikely to fit most first-time buyers. A median home value of $959,889 against a median household income of $87,738 creates a difficult affordability threshold. Buyers relying primarily on local wages would need substantial savings or outside funds. The state comparison makes that clear: local home values are far above the state benchmark, while incomes are only somewhat above the state benchmark.
The market is better suited to high-income buyers, cash buyers, and investors who can handle the high price point. The rent index of $3,601 is more than double the state average, which may attract investors looking for rental income. At the median home value, that rent level implies annual rent of about $43,212, a gross yield near 4.5% before expenses. However, with 110 days on market and 13.5% of listings cutting prices, investors should expect slower exits and must account for holding costs. Move-up buyers may also face challenges because selling an existing home could take time and require price flexibility.
Outlook
The data points to a cautious outlook. Home value momentum is only 2.16% over 12 months and 0.15% over three months, with a year-over-year change of $-6. Those figures suggest flat-to-very-slow price movement. At the same time, 110 days on market, 13.5% of listings with price cuts, and 1,226 homes for sale indicate that supply is absorbing slowly. Buyers are likely to retain negotiating power as long as those conditions persist. The high rent index of $3,601 may provide some underlying housing demand, but the sales market is not showing strong upward price pressure. Population growth is not available, so there is no demographic tailwind in the data. Overall, the near-term view is for continued softness or stability in pricing rather than rapid appreciation.
AI-generated analysis based on current market data. Last updated October 2, 2026.
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Key West, FL market data
Key West, FL Housing Market Overview
Key West, FL's median home value is $960K, up 2.2% over the past year. Homes here sell in a median 110 days. Its PropertyIQ Score of 19 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
Understanding the Key West, FL housing market requires looking beyond headline price figures. The PropertyIQ Score reads both sides of market strength: Zillow price momentum across 3- and 12-month windows, and Realtor.com flow signals — days on market and the share of listings with price cuts. Together they predict how this FL metro is set to perform relative to the rest of its state.
The South Atlantic region continues to attract domestic migration with its combination of job growth, favorable tax environments, and year-round climate. Markets range from rapidly appreciating tech corridors to established retirement destinations with strong rental demand. Within the South Atlantic, Key West, FL's PropertyIQ Score of 19 runs below the South Atlantic norm.
Florida's zero state income tax, warm climate, and retirement appeal maintain strong population inflows. The state's insurance market dynamics and hurricane risk are important context for reading how individual Florida metros are positioned relative to the state.
Each month, PropertyIQ updates its score for Key West, FL using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been positive, with home values up 2.2% over the past year.
Use PropertyIQ's interactive analytics to compare Key West, FL against any other US metro on its PropertyIQ Score and underlying metrics. Generate a free AI market report, explore historical trends on the graphs page, or see how this market ranks on the scores dashboard.
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Key West, FL a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Key West, FL currently scores 19, a very weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $960K, up 2.2% over the past year. So whether Key West, FL is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Key West, FL?
Key West, FL's PropertyIQ Score is 19, indicating very weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 19 places Key West, FL below its state benchmark.
Are home prices in Key West, FL rising or falling?
Home prices in Key West, FL are rising. Over the past year, the median home value increased 2.2%, reaching $960K. Over the latest three months, values moved up 0.2%, a sign near-term demand remains firm. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Key West, FL's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Key West, FL?
In Key West, FL, homes sell in a median of 110 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 13% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Key West, FL market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.