This Florida City Was Named Best Hidden Gem Housing Market for Its Affordability—and It Has White Sand Beaches and Small Town Charm

Florida is a popular place to buy a house, and for people hoping to make a big purchase, some cities are more buyer-friendly than others.

Of all cities in the Sunshine State, Pensacola came out on top thanks to its relatively low housing costs and beautiful location along the Gulf of Mexico, according to a recent study from GOBankingRates. The study, which looked at the 30 best hidden gem cities in the United States, found the average home value in the city was $260,455, nearly half the statewide average of $402,892.

For people considering moving to Pensacola, the average median household income was $72,699 and the average monthly mortgage was $1,491. Overall, the study found the total cost of living came out to around $3,500 per month on average.

Pensacola was considered a balanced housing market in August with supply and demand generally about the same, according to Realtor.com. The median sale price of a home rose to $299,000, an increase compared to the August 2024 median price of $276,450.

Pensacola boasts white sand beaches and ample opportunities for outdoor activities like hiking and swimming, making it a popular vacation spot and an ideal place to settle down. The city can trace its modern roots all the way back to the 16th century when the Spanish arrived to establish a new colony, according to Visit Pensacola.

Popular sights include historic forts like Fort Pickens (built in the 1800s to defend the Gulf Coast) and the National Naval Aviation Museumwhich features 150 restored aircraft from across the Navy, Marine Corps, and Coast Guard Aviation.

In addition, visitors can explore Perdido Key, a barrier island that serves as a sanctuary for local wildlife; and Pensacola Beach, which is popular with travelers who love fishing and kayaking and includes many walking paths, shops, and restaurants to enjoy.

Beyond FloridaGOBankingRates noted California and New York had the strongest showing with each boasting five cities apiece on the company’s list of hidden gem housing markets. Together, they represented a third of all cities ranked.

To determine its list, GOBankingRates analyzed cities across the U.S. using data from the Zillow Home Value Index to find destinations where the value of an average single-family home was at least $50,000 less compared to the statewide average. The company also looked at the cost of living in each place. All data was current as of Sept. 2.