The recent housing boom in Florida created not only inflated home prices, but an increase in many other monthly expenses as well. It used to be that many seniors or retirees moved to the sunshine state not only for the fabulous weather, but because it was extremely affordable. There is no state tax and the cost of living was much lower than most other states in warmer climates.
Changes Since 2020
When Covid-19 hit the world and everything shut down for months, people began migrating to other states for various reasons. Suddenly, many could now work from home; some were motivated by the freedom that other states offered; and of course the weather in the sunshine state was a popular magnet for moving. But what happened was that there were more buyers coming to the state than available homes for sale and that created a bidding war. There were many multiple contracts on one home with some buyers offering much more than the actual listing price. Since this continued for several months, home prices became extremely inflated in a short period of time.
Added to all of this is the problem getting homeowners insurance coverage throughout the state of Florida. Even before Hurricane Ian caused massive destruction in the southwest area of the state, there were many various insurance companies leaving the state and homeowners were being told their coverage was being canceled. Annual premiums have continually increased and now homeowners will most likely have an additional expense to help cover the tremendous amount of insurance claims that will be processed since the hurricane. Insurance coverage is becoming unaffordable for lots of families.
Currently with higher gas prices, food prices, utilities, HOA dues and general cost of living, the price to live in sunshine is becoming much more difficult for many. The question is: where do people move now where it is more affordable? Previously, Florida was one of the most affordable states especially for those on a fixed income. So, where to next? Hopefully, there will be positive changes in the near future and the market will correct itself. We are already paying the price for living in paradise!