What You Should Know Before You Retire in Florida
Category: Best Retirement Towns and States
August 27, 2024 — Florida is definitely one of the most popular states for retirement – and for people of all ages. It was the second fastest growing state in 2023, and had the highest rate of net immigration (more people moving in than out) in the nation in 2022. The influx of retirees is one of the biggest reasons for this growth. Yet the Sunshine State is a lot more than just Disney World and beautiful beaches. This article will explore some of the essential things you need to know before you pull up stakes and move there. Some of these items might be positive for you, others not so much.
13 Things to know about retiring in Florida
It’s hot and humid in The summertime. Living in Florida year round means hunkering down in the air conditioning for most of the summer. Powerful hurricanes and storms hit the State frequently, sometimes with mandatory evacuations.
Insurance rates are soaring. Climate change and natural disasters are causing rates to explode. As insurance companies leave the State, sometimes there is only one insurer you can get coverage from, Citizens. Prices have risen so fast that many homeowners will have to sell because they can’t afford the insurance required by their mortgages.
Florida’s tax situation is very attractive. There is no income tax. If you move here, FL doesn’t care how much time you spend in the State, but if you are moving from a state that has an income tax, that one will. If you want to change your state residency to Florida, do it properly.
The FL Homestead Law protects homeowners from drastic changes in their property taxes. For Homesteaded properties, real estate taxes cannot go up more than 3% or the rate of inflation, whichever is less. It is a great law for homeowners.
It used to be a purple state. Now it is decidedly red. The central and panhandle regions are more like the Deep South politically than the rest of the state.
Coastal flooding is getting worse. Areas near the water and in low lying areas are experiencing increasing problems. Roads and buildings will have to be relocated or raised – at great expense.
Sinkholes occur in many areas of the state. They are an unexpected and unpleasant surprise for any homeowner. Careful research can unearth the levels of risk in various areas.
FL has some of the best and strongest condo and HOA laws of any state. This is a good thing because it protects you. For example, SB 154 requires building inspections and strict reserve funding laws for buildings 3 stories and more.
Inland areas provide the best value in real estate. Property near the coast has appreciated to unaffordable levels, with people paying cash for multi million dollar properties. The Zillow Home Value Index in mid 2024 was $400,000 for Florida, compared to $362,000 nationwide. Yet there are certain areas of the state, particularly in the Cape Coral and North Port/Sarasota markets, where overbuilding has produced a softer market in recent months.
Traffic can be unbearable. In months when snowbirds are in town, you might not want to leave your house.
There is no shortage of medical care. Doctors of every specialty and hospitals abound near urban areas, serving the millions of baby boomers who have moved here.
Great winter weather. If you want to be outside in the winter, this is the warmest state in the union, aside from Hawaii.
Critters abound. Alligators are a hazard for pets and small children, and bugs of every description are just about everywhere. The State runs a contest to try to control invasive pythons in the Everglades.
Bottom line
Florida can be a great place to retire, offering warm winters and many fine communities to live in. Our advice is to come down and check it out. Rent a place for month for a year or two before you decide to do anything. Move around to explore different parts of the state. Then you will know if it is for you or not.
For further reading:
Dueling Retirement States: Florida vs. Arizona
Iffy Reasons Not to Retire in Florida
Comments? Let us know what you think others should know about retiring in Florida.
Comments on "What You Should Know Before You Retire in Florida"
Bernadette G La Corte says:
Helpful comments and suggestions.
Admin says:
It was interesting to read that some parts of the State, particularly in spots on the Gulf Coast like Cape Coral, have an overabundance of housing (while others are a sellers market) . The first part is unusual vs. the rest of the country, where too many buyers are chasing too few houses. It could be a reflection of increased insurance rates which are making it harder and harder to own a home.
Yolande says:
Wow, I love reading realistic info on places to live. This one came in the nick of time. I'm on the fence about FL for many, many reasons. However, I'm reconsidering it due to having friends there & am sick of the high tax rate in UT with so few residents to pay them. It's ridiculous in UT, our cost of living is now unaffordable with very low salaries.
The things that scare me about FL are the bugs, the cock roaches in general & mosquitos which are flying needles of death, the Gators & snakes of any kind. It is really, really hard to find a place that does not have ponds or Gator attracting water features in FL, SC, NC & GA communities.
Intense traffic, bad & drunk drivers, spring breakers, high crime, critters on a whole different level, high cost of living, too hot summers (I'm dealing with that now), expensive insurance & rough weather conditions are my main concerns about FL.
I can't afford to live on the beach but close will do. I want my house on stilts, not sure how FL feels about that as most homes unlike TX & other states doesn't appear to have homes on stilts. The cost of insurance is a huge concern as well. It's scary for me but once I visit I will know almost immediately if it works for me. Thanks so much for the detailed info. I truly appreciate it because these were concerns on my list. If not FL I will be starting over on my search. I'm getting annoyed because I just can't find that perfect beach spot.
NOte: This post has been edited for length)
Jan Cullinane says:
One great thing about living in Florida is that it makes it very easy to be physically active. I’ve lived in Maryland, Ohio, and New Jersey, but living in Florida (yes, it IS hot at times) pretty much begs you to be outside and move. I play tennis, ride my bike, and/or take a walk at least six days a week.
Euan Ashley, a professor of cardiovascular medicine and genetics and data science at Stanford University in California, found that one minute of exercise buys you five minutes of extra life. As his research has shown, people who regularly exercise are “60 percent less likely to have atrial fibrillation, 50 percent less likely to have diabetes, 70 percent less likely to fracture your hip, 50 percent less likely to have colon cancer, 25 percent less likely to have breast cancer, 25 percent less likely to get depression; 70 percent of people who are active in their daily lives report better sleep. And over many years, you’re much less likely to die. So, I mean, you pick your system. Exercise, it really is the magic pill.”
Jan Cullinane, author of The New Retirement: The Ultimate Guide to the Rest of Your Life 3rd edition (Wiley), and The Single Woman’s Guide to Retirement (AARP/Wiley).
Chris says:
Florida is a big state. Don’t over generalize it. The best way to discover it is by visits to different areas. You will like some parts better than others . One might be right for you.
ksw says:
No discussion of moving to Florida is complete without discussion of the high rise crisis in the aftermath of the Surfside building failure. There are a huge number of old condos facing mandatory assessments to cover repairs that have been neglected for decades. Now legislated "reserve studies" at hoa communities means higher dues for almost all the communities. It's called SB-4D and was passed. This means any building over 3 stories has to have inspections for integrity if over 25 years old on the coast and 30 years old inland. I don't think out of state folks understand that even Orlando has hurricane force winds and flooding issues. Emergency assessments and huge increases in hoa dues are catastrophic for seniors on fixed incomes.