A recent study shows a mass exodus to Florida according to a United Van Lines national migration study for 2021. Florida saw 13,201 inbound shipments which was the most in the country followed by Texas at 12,358.
As a percentage, Punta Gorda was the #2 destination in the country and Fort Myers-Cape Coral was #7. Judging by the traffic on our roads you wouldn’t need a national study to confirm what you have already witnessed. Local housing numbers back up the premise that we have more demand than supply in SW Florida.
The top 5 states people are moving out of in the study were 1. New Jersey 2. Illinois 3. New York 4. Connecticut 5. California United Van Lines asked people why they were moving. Florida was #1 on the list for retirement and #2 on the list for a lifestyle change. Florida was ranked #9 on the list for health/personal reasons.
Mass Exodus to Florida
Approximately 900 people per day are moving to Florida. Last year we saw 211,000 people move to Florida. The reasons we hear people move here are numerous. Of course, we have low taxes, moderate temperatures, abundant sunshine, water, boating, golf, and beaches. Add in the ability to work remotely and Florida becomes supremely attractive. Others like the fact that Florida has stayed open during the pandemic while other states have suffered lockdowns and business disruptions.
We hear that more companies are making the decision to relocate to Florida. Corporate relocations take time and planning and do not happen in a day, or year. Some plans already in place have not occurred yet, so expect to see more companies announcing relocation to Florida.
Economy Improving in Florida
While tax rates are low in Florida and Texas, tax receipts are going through the roof. Florida has no income tax and low property taxes. So how is it that tax revenues are increasing? Simply out, more people wish to be here, and they are bringing their wallets. They are buying houses and spending money and tax revenue to the state is expanding. States losing residents will continue to see decreasing tax revenue. High tax states will be forced to cut spending or increase taxes which further exacerbates their situation. If people are moving to Florida due to high taxes where they come from, raising taxes on the ones that are left will not help them retain those residents. Rising taxes simply makes more people want to move to low tax states.
The same is true at the national level. Rising taxes force companies to produce goods elsewhere. Lower taxes bring those jobs back home. The national government could learn an economics lesson from the states.
Inflation
Inflation is a real thing, and it is making housing less affordable. Many people woke up to a 3% raise in 2022, but the things they buy may have increased by 10% or more. That is like taking a 7% plus pay cut. Even though wages rose, people lost purchasing power. We are seeing this in housing. Because so many want to live here it is not hurting our market. It is hurting people at the middle and low end as they are finding it difficult to live where they work.
Affordable housing has once again become an issue, and it will continue. Rising real estate prices makes current homeowners happy and makes affordability an issue for those renting. Rents have risen along with home prices, so it is increasingly difficult to escape the affordability issue.
In many cases it is less expensive to buy than rent. When interest rates go up in 2022 it will make purchasing more expensive, so if you are getting squeezed on your rent, call us and let’s see if we can get you into a home. To purchase, our buyer specialist line is 239-489-4042. To sell, our listing specialist line is 239-310-6500.
Good luck and happy house hunting! To find your home’s value, go to www.SWFLHomevalues.com