Is the Florida ‘Retirement Trap’ Real? (And Is It Still Worth the Risk?)
Written by
Andrew Lisa
Edited by
Levi Leidy
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Florida’s beaches, weather and patchwork of unique cultures have beckoned generations of retirees — and it’s one of only nine states that doesn’t charge a personal income tax.
However, evolving financial realities have forced many to conclude that the dream of retiring in the Sunshine State is, well, sunsetting.
Before you pull up stakes and head south, make sure you understand the key elements of the so-called Florida retirement trap and have the financial guardrails in place to make it work.
As the Population Boomed, So Did Home Prices
According to the U.S. Census, a wave of post-pandemic relocations made Florida the fastest-growing state in the U.S. in 2021-22 for the first time since 1957. The result of such an intense surge in demand was predictable. According to Redfin, the average home in Florida sold for less than $300,000 in January 2021. In January 2026, it’s just over $412,000.
Property Taxes: The Gift That Keeps on Taking
Property taxes in Florida fund most essential services in the state, including trash pickup, water, first responders and emergency management — and those taxes soared by 108% in the decade ending in 2025, according to Florida TaxWatch.
It’s a trap that many retirees don’t notice until it’s too late.
“Many homebuyers who move to Florida assume their real estate taxes will be similar to what the prior owner paid in the past,” said Dr. Pellumb Kabashi, founder and CEO of Tax Expert Today LLC, in Naples, whose estate and trust tax specialties have filled his client list with retiree transplants. “In reality, when someone purchases a new home in Florida, the assessed value in most cases is reset to the market value, and any homestead cap that the prior owner had disappears. Therefore, new owners in most cases see their property taxes increase drastically, if not double in certain cases.”
Plan For Five-Figure Annual Homeowners Insurance Premiums
In 1992, Hurricane Andrew’s deadly and costly devastation started what has since become a full-blown crisis in the state’s insurance market — and destructive storms have only grown more frequent and more severe in the ensuing years.
“Over the past few years, insurance prices for both flood and non-flood zones have risen significantly, mostly due to rising hurricane threats,” said Kabashi. “Some insurance companies went bankrupt and others have left the state.”
Insurify data confirms that major players such as AAA, Farmers and Progressive have either scaled back underwriting or exited the Florida market altogether. The result? The Sunshine State has the highest homeowners insurance premiums in America, averaging $14,140 per year, compared to $3,259 nationally.
So, Is the Florida Retirement Dream Dead?
While Kabashi cautions prospective transplants against letting images of sun, sand and palm trees blind them to the changing realities of affordability in Florida, he still believes the dream is within reach for those who budget and prepare.
“While the increased costs of property taxes and insurance rates can be daunting for some new or soon-to-be new Florida residents, there are still many benefits in addition to the beautiful weather and beaches that Florida has to offer, including no state income taxes, protections for homestead properties and no state inheritance or estate taxes,” he said. “If planned correctly, these benefits will outweigh any potential negative consequences that new residents might face.”
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