Florida has consistently maintained its position as the top destination for relocation in the U.S. for five consecutive years, with more than 252,000 individuals relocating to the state between July 2019 and July 2020.
Even before the COVID-19 pandemic, almost two-thirds of Florida residents were migrants from different states.
According to the current US News & World Report, seven of the top ten fastest-growing areas in the U.S. is in Florida in 2023.
Lakeland, Sarasota, and Fort Myers, Florida, are in the top five, beaten by Myrtle Beach, South Carolina.
“With the pandemic creating unprecedented shifts, people living in New York, Seattle, Boston, and San Francisco continue to relocate to Florida, especially for its warmer weather, greater outdoor activities, job opportunities, and lower taxes. With the sudden surge in demand for these properties, even buyers who are acting quickly are getting into bidding wars. Homebuyers in highly urbanized areas and major metropolises have been increasingly interested in buying more spacious properties in milder climates,” states Moises Agami, CEO of Valor Capital.
Now an established migration hub, Florida gained over $200 billion in investments and economic activity from other states in the past two decades. With no income tax, Florida entices wealthy individuals from high-tax states like New York and New Jersey. Yet, Florida’s affordable living also appeals to low and middle-income families.
Prices Rising
However, as the demand for housing grows, so are property prices and the cost of living. Newcomers to the state, enticed by the low cost of living, might be in for a shock. Bankrate reported that “As of August 2022, median sale prices for homes in the state reached $407,000, according to Florida Realtors data. And Miami was labeled the least affordable city in the nation for renters by a Realtor.com report issued earlier this year.”
Additionally, while Florida has no income tax, property tax, especially for new homeowners, is around 6%. Cities in Florida vary widely in cost of living, so do your research before committing to a city.
Upward Trend
A real estate market forecast from U.S. News and World Report for 2027 suggests the average median home sales price in the U.S. will remain the same in five years ($367,000), and 30-year fixed mortgage rates would have decreased to 4.5%. In fact, the median sales price for houses in Florida grew by only 9.6% between December 2021 and December 2022.
“The Florida real estate market has been on an upward trend driven by a growing population. With the increasing number of family homes, condos, and luxury properties with high-demand amenities, investing in the Florida real estate market can be a lucrative and rewarding experience,” concludes Agami.
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This article was produced and syndicated by A Dime Saved.
Robyn Goldfarb
Hi! I am a millennial mom with a passion for personal finance. I have always been “into” personal finance but got inspired to start my blog after a period of extended unemployment. That experience really changed the way I viewed my relationship with money and the importance of accessible personal finance education.