4 Ways Florida Retirees Can Save on Housing, According to Local Experts
Written by
Daria Uhlig
Edited by
Amber Barkley
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Housing costs continue to strain the budgets of Florida retirees who, judging by recent data from Redfin, should be seeing lower home prices. The supply of homes for sale was on the rise as of September, and sales were down 14%. Yet prices were nearly unchanged compared to a year prior.
Renters are also feeling the pinch. Zillow Rentals data shows that rents are averaging $2,485, due in part to the extraordinary number of units renting at $5,000 or more. But even the next most common range — $1,800 to $2,400 — is cost-prohibitive when none of that money builds equity. Renting, then, is no longer a viable option for many retirees looking to reduce housing costs.
GOBankingRates reached out to several Florida real estate experts to find out what retirees can do to save on housing.
Downsize
Downsizing to a smaller home could be the most effective way to reduce housing costs, and it might even leave you with extra cash for your retirement savings. Vivian Lehman, broker/owner of You Have Realty in Maitland, Florida, said it might be worth doing even if it means trading an ultra-low mortgage rate for a higher one.
“Not downsizing because they were lucky enough to refinance at 2.5% could hurt the retiree on a fixed income, because the cost of repairs/upgrades and insurance on a home can become prohibitive,” Lehman said.
If moving into a smaller condo or townhome doesn’t appeal to you, follow the lead of retirees who are getting creative with their downsizing strategies. For example, many are buying properties with their grown children, with the children occupying the main home and the parents living in an attached or adjacent casita or in-law suite.
“This setup shares living expenses and relieves the burden of maintaining a home as they age, while still maintaining their own smaller space and all the security of being near family,” Lehman said.
Relocate
Whether or not you decide to downsize, relocating from a more expensive area to a less expensive one can save you enough to justify the broker fees and closing costs.
Robert Washington, broker at Savvy Buyers Realty, a flat-fee buyers brokerage in St. Petersburg, offered this example: “Naples and Sarasota are both popular cities to retire in, but they are too expensive for most retirees. But there are plenty of great options between the two, like Fort Myers, Cape Coral and North Port, that have plenty of homes priced at levels that are more accessible to most retirees.”
In addition to saving on the purchase price, relocating, especially from one Florida region to another, can also reduce your insurance rates.
“Homeowners insurance rates vary dramatically across Florida,” said Greg Martin, owner of Think Safe Insurance in Brandon. “Factors like local building codes, flood zones and historical weather risks play a role in these variations.”
Reduce Homeowners Insurance Costs
Florida homeowners pay the highest insurance premiums in the country — $10,966, on average, according to proprietary data from Insurify. However, you can take steps to reduce your premiums even if you remain in your current home.
“One of the biggest ways to save on premiums is to make sure you have an up-to-date wind mitigation inspection, especially for homes over 20 years old,” Martin said. “This inspection can unlock valuable discounts, as insurers reward homes with features like hurricane clips or other wind protection measures.”
Martin also recommended reviewing your policy to look for other ways you can earn discounts. “Sometimes simple updates, like securing higher deductibles or bundling coverages, can lead to additional savings.”
Ask for a Break on Your Property Tax
“No matter your age, if you own property, you are subjected to property taxes,” said to H. Frances Reaves, Esq., a Key Biscayne attorney and founder of Parent Your Parents, an elder advocacy group.
Exemptions can ease the burden, but you’ll have to apply to receive them. In some cases, you’ll have to apply each year.
Reaves told GOBankingRates that all Florida homeowners are eligible for a $50,000 exemption, which reduces the amount of value on which your home is taxed. Florida homeowners age 65 or older who’ve lived in their homes for 25 years or more can apply for an additional $50,000 exemption if their incomes fall within the limits. The state adjusts the income limit each year, according to changes in the consumer price index.
Widows and widowers can apply for an additional exemption.
“The widow/widowers exemption reduces the assessed value of your property by $5,000,” Reaves said. “This provides a tax savings of approximately $100 annually. Any widow/widower who owns property and is a permanent Florida resident may file for this exemption.”
If your home’s assessed value is too high to qualify for an exemption, you can challenge the assessment by contacting the property appraiser’s board and/or filing a petition with the county value adjustment board. But this strategy can backfire if you’re not careful.
“If you have lived for twenty-five years in a house that is now in a redevelopment district, there is an excellent chance the home values will go up. As a consequence, you might lose your exemption,” Reaves explained.
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