There are so many reasons to dive into Florida Keys real estate: the year-round resort atmosphere, the sparkling sea, the thriving economy—the only drawback is the cost. In the past several years, Keys real estate prices have risen steeply, but the plus side for those who can swing it is that their new property is unlikely to ever drop in value. Restrictions placed on new development, enacted to protect the remaining natural habitats on the islands, ensure that the cove and palm grove alongside your seashore bungalow won’t someday become a fifty-story Hilton. Equity accrues quickly, so you can profit from selling and move up the ladder to financial success, or put your investment back into your home and design the kitchen or balcony you see in your dreams.

Median home value in Key West was $250,000 for 2003, much higher than the national median of $134,000. Last year, 2004, that figure rose steeply to a heart-stopping $450,000 for a 1,400 square foot home. Homes nearer shore or in the Old Town historic district (alongside Duval or Whitehead Streets) are generally priced much higher. In 2004, the average selling price for homes throughout the Florida Keys totaled $530,000, with sellers receiving 95% of their original asking prices, according to Multiple Listing Service reports.

Naturally, homes farther north are more affordable and less encompassed by the sunscreen-scented throngs packed together in Key West. In Marathon, the average home is 1,600 square feet on a spacious lot and sells for around $375,000. Islamorada, Spanish for “purple isles,” is about halfway down the island chain. Homes on Islamorada average just under $500,000 for 2,450 square feet. Those wishing to purchase a home in northernmost Key Largo can look forward to a 2,250 square foot home for under $300,000, and they’ll be conveniently near Miami’s culture, shopping, and international airport.

The upper Keys also have much less crime, the surrounding waters are actually clearer, beaches are less populated, and wildlife is more abundant. Traffic is lighter and parking is simpler. Another advantage: you’ll have less driving in case of a hurricane evacuation.

Speaking of hurricanes, many of the newer Keys homes are concrete block and stucco on stilts, so they’ll suffer less damage from flood or storm surge waters. The old frame and Victorian homes (average age: 45 years) in Old Town Key West are generally wood structures with porches, balconies, and two or more stories. Tin roofs and open interior designs are hallmarks of Key West architecture.

Those searching for a vacation home or a more moderately priced option should consider town homes, condos, and apartments. These are less expensive, and generally don’t require you to perform maintenance such as yard work and painting. Many feature amenities such as pools, gyms, and often boat slips, and most of those located at the northern tip of Key West provide parking and balconies overlooking the water.

One of the primary benefits to having a home is the Sunshine State is Florida’s Homestead Exemption law, which prevents property taxes from skyrocketing based on real estate market activity. Additionally, Florida assesses no personal income tax or estate tax, so if you somehow fail to spend it all, your children will actually receive most of their inheritance.