Median home prices in Palm Bay, Florida, reached record highs in January 2026, with the most expensive properties selling for over a million dollars, according to Redfin Real Estate data. The bottom 5% of sales averaged $130,064, while the top 5% hit $1.2 million. Starter homes averaged $264,393, mid-tier homes $356,363, and high-tier homes $545,818. These prices outpace the national median for similar tiers, which range from $125,384 to $1.34 million. Redfin defines price tiers as bottom (bottom 5%), starter (5%-35%), mid (35%-65%), high (65%-95%), and luxury (top 5%).
Local median household income in Palm Bay is $85,474, compared to the national median of $87,934. This means even the most affordable homes in Palm Bay cost nearly 1.5 times the local median income. The gap is wider for higher-tier homes, where the luxury tier price is 14 times the median income. Redfin economists note that while 2025 saw record-high prices and historically slow sales, affordability may improve in 2026 as mortgage rates stabilize.
The data highlights the stark divide between income and housing costs in the area. For example, the mid-tier median sale price in Palm Bay is $356,363, which is $19,637 below the national mid-tier median of $375,000. However, the luxury tier in Palm Bay is $1.2 million, $137,000 below the national luxury median of $1.34 million. Redfin’s affordability calculator suggests buyers may need to adjust expectations or explore different price ranges.
Palm Bay’s housing market remains a focal point for local buyers and investors. With mortgage rates still above pandemic lows, the market is expected to remain competitive. Redfin’s analysis provides a snapshot of current conditions but does not account for potential changes in 2026. Homebuyers are advised to monitor market trends closely as affordability shifts may take time to materialize.