Retirees spending some of the year in Florida will be affected by the higher cost of living

Retirees spending some of the year in Florida will be affected by the higher cost of living

For dozens of years, retired people from colder regions, including Canada, have been coming to the south Florida to rent affordable housing for the winter months. However, the growing competition in the rental and sales market of residential properties and the higher cost of living make it increasingly more difficult for these “snowbirds” to enjoy living in a paradise climate like they used to.

The boom in the Florida real estate market is partially caused by the spreading remote work and the restrictions introduced to fight the COVID-19 pandemic, which is why many Americans preferred to move to the Sunshine State. In 2021, the domestic migration here broke the all-time record. According to the US Census Bureau, 220,890 people moved to Florida from other states and 38,590 people, from other countries.

The Florida Department of Highway Safety and Motor Vehicles reported that over 61,728 residents from New York state alone moved here last year. In 2022, this trend exacerbated.

Such a situation caused a high demand, which, in its turn, led to a rapid growth of prices in the residential property market of the Sunshine State.

Data from the Federal Housing Finance Agency suggests that home prices in Florida have been growing faster than anywhere else in the USA both in the second quarter (by 6.74%) and from July 2021 through June 2022 (by 29.77%). Over the past 12 months, Florida’s growth surpassed the price growth rates in North Carolina and Arizona, which were the second and the third in this rating.

Such a trend is great news for investors whose investment yielded double-digit returns.

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