Key West Real Estate Market Overview
The Key West real estate market presents a unique landscape, influenced by its island geography, tropical lifestyle, and historic character. Here’s a breakdown of the current market conditions, property types, and key considerations for buyers and sellers.
Market Conditions
The Key West housing market is currently experiencing a shift. While the market was a seller’s market in May 2024, it has transitioned into a buyer’s market as of May 2025 . This means that prices tend to be lower, and homes stay on the market longer .
Property Types and Prices
Median Sold Price: The median home sold price in Key West was $1,100,000 in May 2025, which is a 6.2% increase from the previous year . However, other sources show the median sale price in April 2025 at $1.1M, up 20.2% since last year .
Days on Market: Homes in Key West had an average listing age of 101 days in May 2025, up 16.4% compared to the previous year . Redfin data indicates homes sell in 93 days .
Homes for Sale: The Key West real estate market had 512 homes for sale in May 2025, a 2.6% increase compared to April 2025 .
Sale-to-List Price: Homes are selling for about 5% below the list price on average .
Key West offers a diverse range of properties, from historic cottages to luxury estates .
Several factors contribute to the unique characteristics of the Key West real estate market:
Factors Influencing the Market
Single-Family Homes: The median price for single-family homes is around $1.4 million .
Historic Homes: These are highly sought after, with Old Town homes starting near $700,000 .
Condominiums: These offer a more affordable option .
Waterfront Properties: Luxury homes with ocean views or dock access attract high-net-worth individuals .
Investment and Market Trends
Limited Space: The island’s small size (4.2 square miles) and zoning restrictions create high demand and premium prices .
Tropical Lifestyle: Properties are designed for outdoor living, with features like gardens, pools, verandas, and outdoor kitchens .
Historic Preservation: The city’s emphasis on preserving historic homes adds value and aesthetic appeal .
Tourism: Key West is a popular vacation destination, driving strong demand for vacation rentals .
Lifestyle-Driven Purchases: Buyers are seeking a way of life, with walkability, outdoor space, and proximity to water being key considerations .
Navigating the Key West real estate market requires local expertise. There are over 400 real estate agents in Key West .
Local Expertise
Note: Phone numbers and websites are included where available from the provided sources. Restaurant hours and reservation policies can change, so it’s always a good idea to check directly with the restaurant before visiting.
Better Than Sex – A Dessert Restaurant: 926 Simonton Street, Key West, FL 33040, betterthansexdesserts.com [1]
Blue Heaven: 729 Thomas Street, Key West, FL 33040, (305) 296-8666, blueheavenkw.com [1] [2]
Latitudes at Sunset Key: Sunset Key Island, Key West, FL 33040, (305) 292-5394, opalcollection.com [1]
Santiago’s Bodega: 207 Petronia Street, Key West, FL 33040, (305) 296-7691, santiagosbodega.com [1]
Cuban Coffee Queen: Multiple locations, cubancoffeequeen.com [1]
Louie’s Backyard: 700 Waddell Avenue, Key West, FL 33040, (305) 294-1061, louiesbackyard.com [1] [4]
Amigos Tortilla Bar: 425 Greene Street, Key West, FL 33040, amigostortillabar.com [1]
La Grignote: 1211 Duval Street, Key West, FL 33040, lagrignotecafebakery.com [1] [3]
Conch Republic Seafood Company: Historic Seaport, Key West, FL 33040, conchrepublicseafood.com [1]
Kermit’s Key West Key Lime Shoppe: Corner of Greene and Elizabeth Street, Key West, FL 33040, keylimeshop.com [1] [3]
Café Marquesa: 600 Fleming Street, Key West, FL 33040, (305) 292-1244, marquesa.com/cafe-marquesa [1] [4]
Salute! On the Beach: Higgs Beach, Key West, FL 33040, (305) 292-1117, saluteonthebeach.com [1]
Garbo’s Grill: 409 Caroline Street, Key West, FL 33040, garbosgrillkw.com [1]
DJ’s Clam Shack: 629 Duval Street, Key West, FL 33040, (305) 294-0102, djsclamshack.com [1] [4]
Eaton Street Seafood Market & Restaurant: 801 Eaton Street, Key West, FL 33040, kwseafood.com [1] [3]
Banana Café: 1215 Duval Street, Key West, FL 33040, (305) 294-7227, bananacafekw.com [1] [4]
El Siboney: 900 Caroline Street, Key West, FL 33040, (305) 296-4184, elsiboneyrestaurant.com [1]
Caroline’s Café: 310 Duval Street, Key West, FL 33040, carolinescafe.com [1]
Bagatelle: 115 Duval Street, Key West, FL 33040, bagatellekeywest.com [1]
Two Friends Patio Restaurant: 512 Front Street, Key West, FL 33040, twofriends.com [1]