Florida’s Rising Costs and Insurance Woes Are Driving Homeowners to Consider Other Markets
Florida had the highest net migration increase of all states in 2022, gaining a net population of 249,064 people.
In 2023, the top 3 cities people moved to in Florida were Palm Bay-Melbourne, Ocala and Sarasota-Bradenton.
Florida recorded an 86% net gain in new businesses in 2023.
- Florida continues to have a reputation as the best place to live and work, which attracts new residents. Florida has seen gains in population over the last 5 years from states like New York, New Jersey, and Illinois.
- In the last 5 years, 250,253 people have moved from New York to Florida, and 117,418 people have moved from New Jersey to Florida.
But now, with the recent increase in tropical storms, such moves are being reconsidered. - The Gulf of Mexico and Caribbean have become hotbeds for powerful storms, and the increasing frequency of hurricanes is leading to rising home insurance and flood insurance costs in Florida. As Floridians grapple with escalating expenses, many are reconsidering whether the Sunshine State is still the affordable paradise it once promised to be.
The high cost of living, coupled with record-breaking inflation and a volatile real estate market, is pushing some residents to explore alternatives, and markets like New Jersey could become an appealing option.
For decades, Florida has attracted retirees and others seeking sunny, affordable waterfront living. However, the onslaught of climate disasters and skyrocketing insurance premiums are now undermining that appeal. Just recently, millions were left without power as the state began assessing the widespread damage left by a devastating storm. The financial toll of such disasters, coupled with ongoing inflation, has led many homeowners to reach a breaking point.
Between 2021 and 2023, Florida’s population grew faster than almost any other state, largely driven by the flexibility of remote work, attractive tax policies, and a booming job market. But the pace of migration to Florida appears to be slowing, and some signals suggest a shift is underway. According to an analysis of driver-license exchanges by Brad O’Connor, chief economist at Florida Realtors, the number of people moving to Florida surged 41% higher in the first half of 2022 compared to pre-pandemic levels. However, in the first half of 2023, the number had leveled out, showing just a 12% increase over 2019, signaling that Florida’s allure may be fading.
Experts have predicted that Florida’s population growth will slow further in 2024. In fact, a report from the Florida Chamber of Commerce noted that more people are beginning to migrate to states like Georgia, North Carolina, and Tennessee, where the cost of living is lower, and some still offer the benefit of no state income tax. For many, the consistent rise in property values, coupled with unaffordable home insurance, has made living in Florida increasingly untenable.
In contrast, regions like New Jersey, where natural disasters pose less of a regular threat, are becoming more attractive. Although New Jersey has its own real estate challenges, its coastal regions and suburban areas could become an appealing alternative for those fleeing Florida’s increasingly uncertain landscape. With more stable insurance markets and fewer climate-related risks, New Jersey offers a level of security that Floridians may no longer find in their home state.
Despite these challenges, many coastal Florida residents are determined to stay, unwilling to part with the lifestyle they’ve built or the allure of waterfront living. However, as costs continue to soar, and hurricanes and insurance premiums show no signs of slowing down, the decision to stay could become more difficult for many. And as the Florida housing market begins to sputter, New Jersey could stand to gain a wave of new residents seeking stability in a turbulent world.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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