Why do people retire in Florida? Many baby boomers approaching retirement age are hunting for a warmer climate to call home in their golden years. So, as you sit there mulling a retirement in the Southeast, thousands of others are already on their way to Florida with their household belongings. Should you join them?
Florida saw a net influx of more than 77,000 new retirees in 2022 — more than three times the influx to any other state, according to Smart Asset, using data from the U.S. Census Bureau. Not only is the state's weather a strong draw, but Florida also has no income or estate taxes, and property taxes aren’t too high compared with other states.
But Florida is a bit more complicated than just beaches, Disney World and the massive retirement community known as The Villages. You'll want to consider all aspects of the state before packing up and heading South. In fact, we recommend you "try before you buy" — spend an extended period of time in the Sunshine State to get to know the place before you make a move.
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Here's what you need to know about retiring to Florida. So grab an OJ and dive on in. The water’s warm, but...complex.
1. Prepare for harsh weather
Sure, Florida has great weather. After all, it is called the Sunshine State. But don't expect every day to be sunny. Thunderstorms in Florida are frequent and intense. The Atlantic hurricane season lasts six months, from June 1 until November 30, and peaks between mid-August and late October. Since 1850, all of Florida’s coastline has been impacted by at least one hurricane.
The 2024 hurricane season is expected to have above-normal activity, according to NOAA, thanks to La Nina conditions and warmer-than-average ocean temperatures. And there have already been several storms this season, including Hurricane Beryl and Hurricane Ernesto. Right now, Hurricane Helene is heading toward the Gulf Coast of Florida and is expected to land as a Category 3 storm.
The likelihood of harsh weather can affect the financial benefits of moving to Florida. Florida residents pay a lot more in insurance to protect their property. More on that below.
2. You'll need plenty of insurance in Florida
The risk of hurricanes makes insuring your home in Florida much more complex and expensive than it is in many other areas. In many hurricane-prone areas, insurance companies often require property owners to not only purchase homeowners insurance but also flood insurance and sometimes even windstorm coverage.
“The cost to insure a home without wind mitigation features could be four times higher than a home with wind mitigation,” says Chris Heidrick, an independent insurance agent in Sanibel, Fla.
Floods aren't covered by a standard homeowners policy, but you can get coverage from the National Flood Insurance Program. According to Policy Genius, flood insurance costs an average of $888 per year from the NFIP. You may also be able to find flood coverage from private insurers.
However, many insurance companies in Florida are leaving the state entirely. Others are choosing to significantly raise rates, limit coverage and even cancel policies. For example, last summer, AAA announced it would no longer be renewing policies with home, auto and umbrella bundles in Florida, and Farmers Insurance pulled out of Florida entirely, affecting 100,000 policies.
For this reason, the availability of coverage and cost of premiums can vary a lot by insurer in Florida. Plus, expect to pay a higher deductible for hurricane damage — generally, 5% to 10% of your coverage amount for damages caused by a hurricane. The Florida Office of Insurance Regulation has a great Rate Comparison Tool that provides premium estimates from insurers in your county.
Overall, It’s important to find out about a house’s insurability before buying it, so you don’t end up with annual premiums that are several thousand dollars more than you were expecting to pay.
You can use our tool below — powered by Bankrate — to compare home insurance policies today.
3. Florida’s a lot less taxing
Moving to the Sunshine State could save you a lot of money in taxes. Florida, one of our 10 most tax-friendly states for retirees, has no state income tax. That means no state taxes on Social Security benefits, pensions, IRAs, 401(k)s and other retirement income. It also has no inheritance tax or estate tax.
But snowbirds who maintain a second home in a colder state can’t just tap their heels together to establish residency in Florida for tax purposes. You’ll need to show that you spend more than half the year — 183 days — in Florida. But don’t expect state tax auditors to take your word for it. For starters, keep a diary or log showing the number of days you spend in each state during the year, says Tim Steffen, director of financial planning for Robert W. Baird.
Here's what else to do:
- Register to vote in Florida, and if you receive a jury summons, perform your civic duty
- Apply for a library card
- Change your driver’s license and car registration
- Establish relationships with health care providers in your new location
- Open an account at a local bank, and keep receipts of ATM withdrawals
- Shopping locally is also a good idea: State tax auditors sometimes review credit card records to determine where you were during the year
- File a Declaration of Domicile with your local county court
4. The state's population is growing fast
Retiring to Florida? Expect lots of company. Florida is already the third most populated state and just keeps growing.
Florida was the second fastest-growing state in the nation in 2023, growing by 1.6% to reach a population of 22,610,726. Before that, between 2021 and 2022, Florida’s population increased by 1.9%, making it the fastest-growing state for the first time since 1957. And out of the top ten fastest-growing metro areas (between July 2022 and July 2023), Florida is home to four.
Depending on where you land, expect to be surrounded by people who look like you. By 2030, the number of seniors in the Sunshine State is expected to increase by several million.
“Everything is geared toward retired, older people,’’ said one resident, a January 2012 transplant from upstate New York who owns a home in Fort Myers Beach (Gulf side). “All the commercials are about things like walk-in bathtubs, insurance, Lifeline, i.e. ‘I've fallen and I can't get up.’ So many volunteer activities are during the workday. It's like they don't think people move down here to work.”
5. Florida’s tourists can slow you down
Don't underestimate the amount of tourists who pour into Florida every year. If you visited Walt Disney World when you were a kid you probably marveled at the crowds. As a resident, you’ll probably only be annoyed by them.
In 2023, Florida tourism reached unprecedented levels, with the state welcoming more than 140.6 million visitors, an increase of 2.3% from 2022. Overall, Florida has had more than 100 million visitors a year from 2010 to 2019 converging on the state’s famous theme parks, beaches and destination spots such as the Keys and Everglades National Park.
Think of all those tourists on the road as you try to run errands. Major headache.
6. Yes, there's such a thing as TOO much sun
Many of you beach bums in the swingin' '70s knew nothing of SPF. It was baby oil, baby, slathered on your tender skin to enhance rays of sunshine to deepen your tan. Little did you know.
The sun on exposed skin was dangerous then and is dangerous now, especially if you're a tenderfoot moving from the Midwest or Northeast to year-round sunshine in tropical Florida. Sunburn can cause premature wrinkling and uneven skin coloring. And too many sunburns or too much sun will cause your skin's texture to change.
"The skin can become tough and leathery," according to the Florida Institute of Neuroscience. "You may also notice more wrinkles. The sun can also cause brown, red, yellow, or gray spots in the skin called sun spots."
And the most serious result of too much sun, of course, is skin cancer. Your risk of getting skin cancer increases the more sun exposure and sunburns you have. So be careful. A study found that Florida was the second in the nation for the highest rate of new melanoma cases. And at the time of the study, approximately one in ten Floridians had been told they have skin cancer (9.2%).
Sun worshippers are urged to stop sunbathing, avoid the sun between 10 a.m. and 4 p.m. (when the sun's rays are most damaging), and use broad-spectrum sunscreens. And when you are on the beach, sit under an umbrella or some other shaded protection from the sun.
7. Housing supply is increasing
Previously, Florida, like elsewhere in the country, was low on inventory in this seller's market. But recently, Florida has faced the opposite problem — an increase in inventory and not enough buyers. Earlier this year, there was a surge in the number of homes for sale on the Gulf Coast of Florida, according to Redfin. Specifically, the number of homes for sale in Cape Coral, FL and North Port, FL surged roughly 50% from a year earlier in March — more than anywhere else in the country.
Of the 10 metro areas that experienced the largest year-over-year increases in supply, six are in Florida. As mentioned, Cape Coral, FL saw the biggest jump in homes for sale (51%), followed by North Port-Sarasota, FL (48%), Fort Lauderdale, FL (30%), Tampa, FL (29%), Orlando, FL (23%) and West Palm Beach, FL (20%).
The consequence of this? Sellers are slashing prices in these areas.
“Out-of-town homebuyers no longer see Florida as a place to get amazing value. Now they’re moving to North Carolina or Tennessee to get a good deal," Eric Auciello, a local Redfin sales manager says in the report. He goes on to say: "My advice to sellers is to price your home fairly; the comps from six months ago don’t exist now. And if you’re a buyer, know that the odds of getting an offer accepted below market value are pretty high.”
Of course, you're still going to find luxurious waterfront homes for several million in many Florida communities, but the average Florida home value is $394,728, up 1.1% over the past year. For comparison, the average United States home value is $361,282, up 2.9% over the past year.
8. Life’s not always a beach in Florida
There’s often a major misconception about Florida as a retirement destination: Many think the state is one big beach. An easy-to-reach beach. Not so. Those world-famous theme parks? They’re in Orlando, in the middle of the state, an hour or so car ride to the beach.
“People who are thinking about a move to Florida should really explore the state,” says Dania Perry, a real estate agent with Century 21 Jim White & Associates in St. Petersburg. “Each of Florida's metro areas has its own vibe. The east and west coasts of Florida are very different — as different as the Gulf of Mexico and the Atlantic Ocean. North Florida features vast stretches of rolling hills and countryside.”
You already know the big destinations: Orlando, home to Disney World, Universal Studios and their smaller ilk; Miami, if you want to live out your “Miami Vice” or “Golden Girls” fantasies (whatever floats your boat; we’re in a no-judgment zone); and the Florida Keys for a laid-back lifestyle as far south as you can go in the state.
But other Florida towns belong on your Florida Retirement Planning Tour. Fort Myers Beach, for example. You’re right on the Gulf (or close to it), there are plenty of 55-and-older communities, yet it remains youthful during the high season, with plenty of young people flocking to the resort area with its boardwalk and bars.
Sarasota has plenty of beaches, and the small city moves a bit slower than some of the larger towns in Florida. There is a wide array of restaurants and stores in St. Armands Circle, the island shopping center. Another bonus: access to the Sarasota Memorial Health Care system, which is one of the largest medical centers in Florida.
Is retiring to a college town — to teach part-time, take college courses (free for folks age 60 or older) or just hang out with the young’uns — a must for you? Check out Gainesville, home of the University of Florida. But bear in mind that Gainesville is deep in the heart of Florida, 75 miles from any beaches.
9. Florida has lots of creepy, crawly things
Florida is its very own ecosystem, and the state’s various creatures may do more than make your skin crawl. They might also eat into your budget.
For instance, dealing with termites is just part of the routine for Florida homeowners. Of the top 10 U.S. cities where Orkin performed the most termite treatments from February 1, 2022 to January 31, 2023, Florida scores three: Miami, Tampa and Orlando. As you can see, Miami scored the #1 spot on the list.
A termite inspection by a pro ranges from free to $325, with an averaging of around $150. The average cost for the treatment of termites is $575.
Then there are the rats — on the beach, in the trees, and perhaps on your roof, too. Yes, they are the same rats you know and loathe; they've just adapted to the climate and are called, among other things, palm rats and roof rats. Rat control can cost homeowners upward of $300 a year.
As a Floridian, you’ll also have to keep an eye out for alligators, panthers and pythons. Oh my. Florida has an estimated 1.3 million alligators of the approximately five million in the U.S., and you might encounter them slinking across a golf course or gliding in backyard swimming pools.
“Beware of Alligators” signs are posted at lakes, lagoons, parks, ponds, golf courses and elsewhere throughout Florida. Alligator attacks are rising partly due to rising temperatures, development and people visiting their habitat more frequently, Florida Fish and Wildlife Conservation Commission experts say.
Panthers, the state animal of Florida, are another tale. While there have been no documented panther attacks on humans, they do dine on pets and livestock.
And Burmese pythons, which aren’t native to Florida, are growing in numbers in Everglades National Park — and showing up in homeowners’ pantries, cars, laundry rooms and other spots.
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