Why Are People Leaving Florida?

Why are so many people thinking about leaving behind the sunshine state? In this video, I’m going to discuss why people are currently leaving Florida.

But since the pandemic when we saw people moving to Florida in droves, things have changed dramatically. As someone who helps people move to or within Florida on a daily basis, you may wonder why I would want to make a video like this. I’m always looking out for buyers and sellers alike and I never want anyone to move blindly into a situation that may become more than they can handle.

My name’s Krista Taurins and I’m a realtor helping people just like you move to the Central Florida area since 2009.

Reasons Why People Are Leaving Florida

1. The Magic Has Worn Off

Many people moved here during the pandemic when they realized – why am I working from home in New Jersey? What is stopping me from moving to FL and enjoying better weather and no state income tax? But day to day life is certainly different from a brief vacation, and for many people the family they left behind or maybe the office now being re-opened seems more appealing than sunny weather.

2. Equity in Homes

Most people have a TON of equity in their home. Yes, for those who moved here in 2020, the average home price in Florida was about $290,000 – a relatively affordable price. Now the average home price is $415,000. It’s tempting to take that $125,000 in equity and see what you can get elsewhere and for many people that’s enough to spur a move.

3. Insurance Costs

Insurance has absolutely skyrocketed in Florida since Hurricane Ian. This is normal, whenever a big storm blows through and there is a lot of damage, some carriers will simply phase out of the state. This causes a bit of a crisis as there is less competition, and rates increase and there are limited alternatives. Even worse, some homeowners are finding that their homes no longer can get any insurance. Things like outdated wiring, rotten wood which is pretty common in Florida, or insurance carriers expecting a new roof even when one isn’t exactly needed are all causing pain for homeowners. Coastal homes have always paid high premiums, but now it seems to be across the board. The average florida homeowners insurance premium now stands at over $6000 per year.

4. Condo Crisis

A looming condo crisis is also going to cause many people to sell their homes. After the tragedy in Miami when a 12-story beachside condo collapsed in Miami in 2021, new legislation was put into place forcing condo associations to maintain reserves to repair their buildings. The new laws will almost certainly reduce the likelihood of another Surfside tragedy. But in the process, the laws may force owners to sell if they cannot afford higher assessments. Some owners may sell because they simply do not want to pay higher assessments. Purchasers will have to consider cost of funding structural integrity reserves as part of a buying decision. And in still other buildings, the land value may be greater than the repair value, forcing the condo building to be torn down and the land redeveloped. Structural integrity reserve reports for condos higher than 3 stories are due by the end of the year for the nearly 70% of Florida’s condos that are over 30 years old.