Florida, often hailed as the “Sunshine State,” has long been a magnet for retirees and those seeking affordable coastal living. However, in recent years, a series of climate disasters, soaring housing prices, increased insurance costs, and skyrocketing inflation have started to diminish the state’s allure. Many residents are nearing their breaking point.
According to the U.S. Census Bureau, Florida was one of the fastest-growing states in the country from 2021 to 2023. During the COVID-19 pandemic, remote work opportunities, the absence of a state income tax, and a job growth rate that surpassed the national average attracted many to the state.
Yet, signs indicate that this population growth is beginning to slow, and Florida’s once-booming housing market is cooling off.
Brad O’Connor, chief economist for Florida Realtors, analyzed data on new residents replacing their previous driver’s licenses with Florida ones. He found that license swaps were up 41% in the first half of 2022 compared to the same period in 2019. However, in the first half of this year, that figure rose only 12% compared to three years prior.
A report from the Florida Chamber of Commerce in January projected a slowdown in the state’s population growth for 2024, primarily due to an increase in residents moving to other states. The report highlighted a trend of people leaving Florida for states like Georgia, North Carolina, and Tennessee, where the cost of living is lower or there is no income tax.
The report remarked, “Florida’s once-proud low cost of living has lessened its appeal, and those seeking a more affordable lifestyle may start considering other locations.”
Additionally, analysis from Parcl Labs, a real estate data and analytics company, revealed that many individuals are eager to leave, resulting in more frequent price reductions across several metropolitan areas in Florida.
As of October 7, in the Sarasota metropolitan area, including Englewood, 45% of all listed homes had seen price cuts. In the Tampa metro area, the figure stood at 49%.
Jason Lewris, co-founder of Parcl Labs, stated, “Since June, Florida has been our focus due to a significant supply-demand imbalance.”
