Floridians Feeling the ‘Sunshine Squeeze’: Nearly 50% Want to Move Due to Affordability

Living in Florida is becoming increasingly unaffordable, and nearly half of the Sunshine State’s residents are now considering moving elsewhere, a new study shows.

Florida Atlantic University Business and Economic Polling Initiative (BEPI) released the results of its latest poll this week, showing that just under 50% of Floridians are “seriously considering” moving due to the rising cost of living.

As part of the research, entitled “The American Dream Sentiment SurveyBEPI researchers surveyed 1,000 Floridians ages 18 and older, asking them about their economic concerns, household budgets and constraints to see if the American dream still seems attainable.

In the study’s summary, researchers noted that Florida’s booming economy is overshadowed by fears about affordability — what they call a “sunshine cramp” pushing Floridians toward the exits.

“That percentage of ‘moving quid pro quo’ is striking,” Eric Levydeputy director of FAU’s BEPI, in a statement. “It suggests that while Florida is attracting new residents, many current residents feel pressured enough to think about leaving.”

In the meantime, Realtor.com® senior economic research analyst Hannah Jones According to this finding, this finding highlights how Florida’s long-standing value proposition – sun, lifestyle and relative affordability – is under increasing pressure.

Florida’s rising cost of living is hitting residents hard, with 80% of respondents saying they are concerned about housing affordability – and nearly half describing themselves as “very concerned.”

Inflation is also weighing heavily on Floridians, with 90% saying they are at least “somewhat concerned” about rising prices and 56% saying they are “very concerned.”

“For retirees or residents on fixed incomes, the pressure is especially acute, as what was once considered a cost-efficient move south is now much less feasible,” says Jones. “Overall, the data suggests that Florida’s housing market may be transitioning from a story of rapid growth and migration to one defined by affordability pressures and recalibration.”

Dream of home ownership threatened

In fact, trying to make ends meet every month has become the norm in Florida due to the skyrocketing daily costs. Nearly 70% of respondents admit to experiencing this tension at least occasionally – and 43% say they live paycheck to paycheck.

“For most Floridians, financial security is just one expense away from collapse,” the report said Monica Escaleraschairman of the economics department and director of BEPI. “Many of those surveyed attributed the high cost of living to their inability to save.”

And while three in four Floridians still see homeownership as part of the American dream, many now consider it out of their reach.

Just over half of survey participants said they are at least “somewhat confident” they could buy a home today, and nearly 80% said it is harder to become a homeowner now than it was five years ago.

More than a third of respondents (36%) cite home prices as the biggest barrier to homeownership, followed by high interest rates (15%) and down payment costs (11%).

In light of these revelations, it is perhaps not surprising that Florida’s housing market has experienced the biggest slowdown in the US in recent months, despite falling mortgage rates. The typical Miami home for sale waited 13 days longer for a buyer in October than it did a year ago, according to Realtor.com’s latest monthly housing market trends report.

The average list price in the Magic City last month was $499,999, almost $76,000 higher than the national figure.

As a result of this trend, many Florida housing markets are now full of inventory, with supply rising well above pre-pandemic levels in some metro areas.

“If current homeowners feeling the sunshine squeeze start selling in greater numbers, that dynamic could further intensify, putting downward pressure on prices and changing the state’s real estate landscape,” Jones added.

Florida’s story of the haves and the have-nots

BEPI’s latest findings come as no surprise Cara Ameerreal estate agent at Coldwell Banker Vanguard Realty in Florida.

“Florida has become a tale of two markets: one for the very wealthy, many who have recently moved to the state to make it their primary residence, and one where many longtime owners who were either born in the state or moved there many years ago have felt the shift in the affordability of everything from housing, insurance, condo association dues, along with the costs associated with property maintenance and upkeep,” Ameer tells Realtor.com.

According to the veteran real estate agent, many Floridians are feeling pressured by myriad rising costs — from home insurance payments to maintenance fees and the cost of repairs related to climate-related wear and tear on properties, prompting some to head for the hills.

“I’ve seen a lot of sellers sell their property and leave the state in the last five years,” Ameer says. “The reasons are varied, but some of it had to do with a desire to move to other areas that were not as hot and humid and had less overall costs of maintaining a home or escaping high condo fees.”

At the height of the COVID-19 pandemic, Florida saw a huge influx of out-of-state transplants who were able to work remotely and enjoy the warm weather. However, according to Ameer, many of the newcomers had failed to take a “deep dive into where and what they were actually buying.”

Ameer emphasizes that the age-old idea of ​​Florida as a relatively affordable place where retirees and families can settle forever has gone out the window as the state has become a “tax shelter” for the wealthy.

“Many of these people can afford to self-insure their properties so that they are not affected by high insurance premiums or when their landscaper or pool service increases their prices,” the broker adds.

New migration forecast

But not everyone believes in the gloomy story that emerges from the BEPI research.

Ana Bozovica miami-based real estate agent and founder of Analysis Miamitells Realtor.com that Florida continues to gain population, wealth and businesses at a “remarkable pace.”

“When it comes to housing markets, it’s about net population movement,” she says. “While some Floridians are considering relocation, the influx of new residents continues to far exceed the outflow.”

And Bozovic notices that with the victory of Zohran Mamdani In New York City’s mayoral race on Tuesday, Florida will benefit from an accelerated flight of taxpayers from the high-tax and highly regulated Empire State.

“We are not bracing for an exodus,” she claims. “We are preparing for the next influx.”