diff --git a/esphome/core/config.py b/esphome/core/config.py
index 00b36e7899..641c73a292 100644
--- a/esphome/core/config.py
+++ b/esphome/core/config.py
@@ -125,22 +125,12 @@ def validate_ids_and_references(config: ConfigType) -> ConfigType:
 
     # Validate device hash collisions and area references
     device_hashes: dict[int, str] = {}
-    for i, device in enumerate(config[CONF_DEVICES]):
+    for device in config[CONF_DEVICES]:
         device_id: core.ID = device[CONF_ID]
         check_hash_collision(
             device_id, device_hashes, "Device", [CONF_DEVICES, device_id.id]
         )
 
-        # Validate area_id reference if present
-        if CONF_AREA_ID in device:
-            area_ref_id: core.ID = device[CONF_AREA_ID]
-            if area_ref_id.id not in area_ids:
-                raise cv.Invalid(
-                    f"Device '{device[CONF_NAME]}' has an area_id '{area_ref_id.id}'"
-                    " that does not exist.",
-                    path=[CONF_DEVICES, i, CONF_AREA_ID],
-                )
-
     return config
 
 
@@ -200,12 +190,16 @@ DEVICE_SCHEMA = cv.Schema(
 )
 
 
+def validate_area_config(config: dict | str) -> dict[str, str | core.ID]:
+    return cv.maybe_simple_value(AREA_SCHEMA, key=CONF_NAME)(config)
+
+
 CONFIG_SCHEMA = cv.All(
     cv.Schema(
         {
             cv.Required(CONF_NAME): cv.valid_name,
             cv.Optional(CONF_FRIENDLY_NAME, ""): cv.string,
-            cv.Optional(CONF_AREA): cv.maybe_simple_value(AREA_SCHEMA, key=CONF_NAME),
+            cv.Optional(CONF_AREA): validate_area_config,
             cv.Optional(CONF_COMMENT): cv.string,
             cv.Required(CONF_BUILD_PATH): cv.string,
             cv.Optional(CONF_PLATFORMIO_OPTIONS, default={}): cv.Schema(
@@ -260,9 +254,12 @@ CONFIG_SCHEMA = cv.All(
         }
     ),
     validate_hostname,
-    validate_ids_and_references,
 )
 
+
+FINAL_VALIDATE_SCHEMA = cv.All(validate_ids_and_references)
+
+
 PRELOAD_CONFIG_SCHEMA = cv.Schema(
     {
         cv.Required(CONF_NAME): cv.valid_name,
diff --git a/tests/unit_tests/core/test_config.py b/tests/unit_tests/core/test_config.py
index 6a28925dd3..372c1df7ee 100644
--- a/tests/unit_tests/core/test_config.py
+++ b/tests/unit_tests/core/test_config.py
@@ -7,7 +7,7 @@ from unittest.mock import patch
 
 import pytest
 
-from esphome import config, config_validation as cv, yaml_util
+from esphome import config, config_validation as cv, core, yaml_util
 from esphome.config import Config
 from esphome.const import CONF_AREA, CONF_AREAS, CONF_DEVICES
 from esphome.core import CORE
@@ -67,8 +67,9 @@ def test_validate_area_config_with_string() -> None:
     assert "id" in result
     assert "name" in result
     assert result["name"] == "Living Room"
-    # ID should be based on slugified name
-    assert result["id"].id == "living_room"
+    assert isinstance(result["id"], core.ID)
+    assert result["id"].is_declaration
+    assert not result["id"].is_manual
 
 
 def test_validate_area_config_with_dict() -> None:
@@ -157,10 +158,9 @@ def test_legacy_string_area(
     area = esphome_config[CONF_AREA]
     assert isinstance(area, dict)
     assert area["name"] == "Living Room"
-    assert area["id"].id == "living_room"
-
-    # Check for deprecation warning
-    assert "Using 'area' as a string is deprecated" in caplog.text
+    assert isinstance(area["id"], core.ID)
+    assert area["id"].is_declaration
+    assert not area["id"].is_manual
 
 
 def test_area_id_collision(
@@ -205,8 +205,9 @@ def test_device_with_invalid_area_id(
 
     # Check for the specific error message in stdout
     captured = capsys.readouterr()
+    print(captured.out)
     assert (
-        "Device 'Test Device' has an area_id 'nonexistent_area' that does not exist."
+        "Couldn't find ID 'nonexistent_area'. Please check you have defined an ID with that name in your configuration."
         in captured.out
     )