Apartment owners are fleeing Florida’s real estate crisis and moving to other southern states, sometimes even leaving the country in search of an affordable lifestyle.
The Sunshine State is facing its “worst real estate crisis in decades” amid skyrocketing insurance and homeowners association (HOA) costs.
The number of apartments for sale has soared as owners desperately try to dodge a new, expensive law requiring stricter security checks.
Miami real estate agent Steven Kupchan told DailyMail.com that people are flocking to Georgia, Texas and the Carolinas and even moving to places outside the country, such as Mexico or Central America.
“With the rise of remote work, some people who moved to Florida for work are now considering relocating to states with a lower cost of living or more stable real estate markets,” Kupchan said.
People are fleeing Florida because of sky-high insurance and homeowners association (HOA) costs.
People are fleeing Florida to places like Georgia, Texas, the Carolinas and even moving to places like Mexico for a more affordable life.
During the pandemic, Florida experienced a population explosion, with more than 700,000 people moving to the state in 2022.
However, experts say homeowners are avoiding the Sunshine State because of rising insurance costs caused by natural disasters and a law that requires more expensive safety checks.
The legislation was introduced after the 2021 collapse of the Champlain Tower South in Surfside, which killed 98 people.
It later emerged that the homeowners association had postponed major repairs to avoid higher costs, prompting lawmakers to institute new rules that will go into effect at the end of this year.
According to data from Redfin, the number of HOA renters in Tampa, Orlando and Fort Lauderdale has increased by more than 15 percent over the past year.
Miami real estate agent Steven Kupchan (pictured) told DailyMail.com that homeowners are flocking to other southern states and even leaving the country in search of a lower cost of living.
This has caused a surge in the number of apartments on the market, particularly in South Florida, with warnings of a “mass exodus.”
“Many retirees and older residents are leaving because they are concerned about rising costs of association fees, insurance premiums and potential levies for repairs and maintenance,” Kupchan said.
‘Some middle-class families who were already hesitant about living in an apartment decide to move because of the perceived instability and financial uncertainty.’
State legislation enacted after the 2021 collapse of the Champlain Tower South in Surfside (pictured), which killed 98 people, led to higher homeowners’ association fees
The stricter security checks are causing the costs of the Owners’ Association (VvE) to increase, causing many people to sell their homes.
This is where they go instead:
Georgia
According to 2021 data from the Bureau of Economic Analysis, the average annual cost of living in Georgia is $43,482, with housing and utilities costing just $7,495.
Georgia reached a new population threshold in 2023, passing 11 million people, according to census data.
A report from financial analysis firm CoreLogic found that there is a 70 percent chance that home prices in the Atlanta-Sandy Springs-Roswell region will fall next year.
The average cost of living per year in Georgia is $43,482, with housing and utilities costing just $7,495. (Pictured: Savannah, Georgia)
Former West Palm Beach resident David said Company Insider He moved to Savannah because wealthy new residents were changing the fabric of the neighborhood.
“The amount of people moving and spending crazy amounts of money was insane,” David said.
‘Their attitude was so different from what everyone was used to; they were demanding and unfamiliar with the quiet lifestyle we led.
“Savannah felt good. The islands of Savannah reminded us of old Florida.”
Texas
People flock to Texas because of the low cost of living (just $45,114 per year) and buyer-friendly housing market.
“Texas continues to be a strong market for homebuyers due to its robust economic growth, favorable business climate and relatively affordable cost of living,” explains housing market expert Dennis Shirshikov.
People are flocking to Texas for its lower cost of living, just $45,114 a year, and buyer-friendly housing market. (Pictured: Houston, Texas)
“Cities like Austin and Dallas offer a combination of high-tech jobs and attractive living conditions,” he added.
According to the U.S. Census, there are over 11 million housing units in Texas. The average annual cost of housing and utilities per capita is $7,540.
North Carolina
According to North Carolina, some of the best cities to raise a family are nearby US News.
The state is seen as a hot spot for potential buyers due to its relative affordability, with the median home price in the state being $335,000.
“North Carolina, and particularly areas like Raleigh and Charlotte, offers a balanced mix of affordability, economic growth and quality of life,” Shirshikov said.
North Carolina is a hotspot for potential buyers because of its relative affordability, with an average cost of living of $43,959 per year. (Pictured: Charlotte, North Carolina)
The average cost of living is $43,959 per year, with annual housing and utilities costs being $7,359.
Irene Ferris had lived in Florida since 1986, but moved to the mountains of North Carolina because of the rising cost of living and increasing natural disasters.
“It’s the economy, it’s the politics, it’s the environment. But at the end of the day, I have to do what’s best for the family,” she said. ABC Action News.
South Carolina
South Carolina is the fastest growing state in the country, with its population expected to reach 6.4 million by 2042.
The state boasts a strong labor market that recovered quickly from the pandemic and a relatively low cost of living, which has already attracted large numbers of new residents.
Many new residents are attracted by the low cost of living, which is six percent lower than the national average, and the state’s booming economy.
South Carolina is the fastest growing state in the country due to its low cost of living. (Pictured: Myrtle Beach, South Carolina)
The Economic Policy Institute found that the monthly cost of living in the state for a married couple with two children is $4,748, or $56,976 per year.
Ryan and Jami Wilson told Business Insider they moved from Florida to Greenville, South Carolina to escape the hustle and bustle.
“We stopped going to the beach because you couldn’t get there because of the miles of traffic,” Jami said. “You could never find a parking spot.”
Mexico
An estimated 1.6 million Americans currently live in Mexico, allowing citizens of dozens of countries to stay for up to 180 days without a visa. GoBanking Rates.
The cost of living in Mexico is 45.7 percent lower than in the U.S., averaging $600 to $2,000 per month. RemoteYear.com found.
An estimated 1.6 million Americans live in Mexico, where the cost of living is 45.7 percent lower than in the U.S. (Pictured: Mexico City, Mexico)
According to Statistics Netherlands (CBS), the population of Mexico City, the country’s capital, grew by three percent between 2019 and 2023. The World Population Review.
Immigration data shows the number of Americans applying for resident visas rose by seven percent between 2019 and 2022.
Central America
Expats who moved to Central America said they were motivated by financial reasons, retirement and a better quality of life, according to the latest Expat Insider report.
Panama was named the best country for expats in 2024, with more than four in five people saying they were satisfied with their lives there.
Newcomers reported being pleased with the low cost of living, the abundance of affordable housing, and the opportunities for outdoor recreation.