Florida has long been a go-to destination for many northern residents.
Florida’s net migration increased among all states in 2022, with a net population surge of 249,064 people. This atypical increase of relocation residents has made destinations within Florida including Palm Bay-Melbourne, Ocala, and Sarasota-Bradenton very popular.
The state also recorded an impressive 86% net gain in new businesses in 2023, highlighting its appeal as a healthy environment for businesses. This influx has been fueled by migration from states like New York, New Jersey, and Illinois over the past five years. From 2021 to 2023, Florida’s population growth outpaced most other states due to remote work flexibility, favorable tax policies, and a robust job market.
Specifically, 250,253 individuals moved from New York and 117,418 from New Jersey to Florida.
But this may come to a bit of a screeching stop! The rise and intensity of tropical storms stemming from the Gulf of Mexico and Caribbean is now driving home and flood insurance costs up significantly across Florida.
As these expenses rise, many residents are reconsidering whether Florida is the best place to retire or start a business.
The combination of high living costs, inflation, and a volatile real estate market is leading some to explore other markets. With the recent climate disasters and soaring insurance premiums, costs of living are taking their toll on many residents’ monthly budgets.
The two storms this year left millions without power and caused significant damage, exacerbating financial strains on homeowners.
The data from Brad O’Connor, chief economist at Florida Realtors, shows that while migration surged by 41% in early 2022 compared to pre-pandemic levels, it only increased by 12% over 2019 in the first half of 2023. This suggests Florida’s allure may be waning. Experts predict further slowing in population growth for 2024.
Now, the Florida Chamber of Commerce reports increasing migration to states like Georgia, North Carolina, and Tennessee—areas with lower living costs and no state income tax. The rising property values and unaffordable insurance are making living in Florida increasingly challenging.
New Jersey Looking Good
Meanwhile, New Jersey is emerging as an attractive alternative. Despite its own real estate hurdles, New Jersey offers more stable insurance markets and fewer climate-related risks than Florida. Its coastal regions and suburban areas could appeal to those seeking refuge from Florida’s uncertainties. While many Floridians remain committed to their coastal lifestyle despite rising costs and insurance premiums, the decision to stay is becoming tougher. As Florida’s housing market faces challenges, New Jersey may benefit from an influx of residents seeking stability amid turmoil. For title insurance agencies operating in this dynamic environment, understanding these trends is crucial. Agencies must adapt to shifting demographics and market conditions to continue providing essential services that protect homeowners’ investments in both established and emerging markets.
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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