4 Reasons You Might Regret Buying a Home in Florida
Written by
Laura Beck
Edited by
Amber Barkley
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Florida’s sunny beaches and warm climate make it an enticing place to buy a home. However, there are downsides to homeownership in the Sunshine State that buyers should consider before taking the plunge. Evaluating Florida’s drawbacks upfront will help you make an informed decision.
Soaring Housing and Living Costs
Florida has a higher cost of living compared to other states, especially in popular metro areas. This strains budgets even for wealthy buyers.
“Florida’s cost of living is higher than the national average,” said Ronan Hannan, principal of Proven Partners. “This is particularly true in the center cities like Miami, Fort Lauderdale and Tampa. Housing costs, in particular, are high.”
The median sale price in Miami is $620,000 as of April 2024, according to Redfin. And even if you can afford the house, consider the costs of insurance, utilities, groceries and other necessary living expenses.
Taking these costs into account before purchasing, rather than after, will allow you to make realistic projections for your budget. Without adequate savings and income, expensive Florida lifestyles can trigger buyers’ remorse.
Unpredictable and Destructive Weather Events
Additionally, Hannan pointed out Florida’s vulnerability to hurricanes, tornadoes, floods and other disasters that often damage properties. Though typically short-lived, these extreme weather events cause power and water service interruptions, too. Preparing for and recovering from them requires time, effort and money better spent elsewhere for some.
Hannan added, “The significant damage that these events can cause to homes and property makes buying decisions harder. Even if these severe conditions don’t cause damage to the house, they make life a bit uncomfortable from time to time because of power outages and disruptions to essential services.”
Storm repairs and replacements can put an unexpected strain on your budget. Even smaller nuisances, like buying generators and supplies, can disrupt your lifestyle. If you’re expecting paradise, you might feel blindsided by Florida’s volatile climate.
Sky-High Insurance Premiums
Due to Florida’s elevated risks from hurricanes, storms and floods, home and flood insurance rates in Florida outpace most of the country. Hannan pointed to recent data, which shows Floridians paying nearly four times the national yearly average for homeowner’s coverage alone.
“According to a 2023 report by the Insurance Information Institute, the average annual premium for homeowner’s insurance in the United States is $1,700,” said Hannan. “While in Florida, the average premium is $6,000.”
For buyers relocating from states with lower-cost insurance markets, Florida’s insurance costs can spark serious sticker shock.
“I do not know anyone in Florida who has not experienced an issue with finding affordable property insurance,” said Nicholas Ritacco, portfolio manager and director of finance at IB Global Real Estate Fund. “More and more insurance providers have left the Florida market, leaving us with less options.”
Ritacco pointed to climate change as partly responsible for the escalating insurance prices. “Post-natural-disaster rebuilding puts pressure on labor and materials, and those payouts from insurance companies raise the level of real risk for insurancers and therefore [premiums increase],” he said.
Sweltering Heat and Humidity
Florida also exhibits stifling humidity levels in warmer months that make enjoying time outdoors challenging. Breathing the moist air and keeping buildings cooled is problematic, as well. For many residents coping with respiratory issues already, humidity compounds health and comfort issues.
“The humidity in Florida is very high, especially during the summer months,” said Hannan. “This makes it difficult to stay cool and comfortable, even indoors. But more importantly, humidity exacerbates respiratory problems.”
If you’re a homebuyer with medical sensitivities, the state’s climate can pose limitations and physical burdens you may not have been expecting.
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