More Americans are flocking to Florida than ever before. In particular, more New Yorkers and Californians are migrating to The Sunshine State than ever before. These two states alone have collectively represented approximately 20% of all inbound moves to Florida as of early 2022. Perhaps the best surrogate marker for this increase in population are rental prices. In fact, in Florida’s top metros, we have seen rental prices rise between 24% and 32% over the past year. For perspective, typically rents tend to rise by 1% to 2% per year.
When analyzing the net migration into the state, we saw 167 people move into Florida for every 100 people that exited the state in 2020. This ratio increased in 2021 with 210 people moving into Florida for every 100 people that departed. According to moveBuddha, the State of Florida reported the largest year-to-year increase in net migration among all U.S. states over the past year.
Why Florida?
While there are many reasons why Americans are choosing Florida as their destination of choice, some of the most common reasons are as follows:
- Lower costs: For starters, The Sunshine State does not have a state income tax. For those migrating from high cost states such as New York, California, & Illinois, this is quite appealing. In addition, Florida ranks in the middle of the pack when it comes to property taxes.
- Virtual workspace: A significant impact from the pandemic has been the boom in virtual workspaces. Whereas before, many Americans would be geographically constrained due to their employment, many companies have now adopted a remote working environment. This has removed all geographic borders for many working-aged Americans.
- Tropical climate & beautiful beaches: As always, you can not discuss the benefits of the state of Florida without mentioning the beautiful sunshine and world famous beaches. Needless to say, Florida continues to be a top domestic vacation destination for many Americans as well.
- Booming economy: Overall, the Florida economy has been booming. Of course, the travel and tourism industry continues to be the lifeblood of the state. However, the tech industry in Florida has also been booming. In fact, The Sunshine State attracted more tech companies than any other state in 2021. This resulted in 2,715 new businesses and 10,522 jobs.
- A great retirement destination: For many decades, Florida has been known to be a popular retirement destination. This continues to be the case. Florida has the second-largest percentage of 65+ year-old residents out of all the states, second only to Maine. As an added bonus, Governor Ron DeSantis signed into law a policy that waives out-of-state tuition at some universities for grandchildren of Floridians.
- Freedom: Not to be ignored, a common reason cited by many transplants in the state continues to be the lack of restrictive COVID-19 mandates. Although this less restrictive approach to the pandemic has been criticized by some, many Americans from all political alignments have appreciated this approach and moved south to paradise.
Summary
In the last decade, nearly 3 million people have moved to Florida. At this point, it does not appear that the mass migration to The Sunshine State will be slowing anytime soon. While this bodes well for the overall economy, it does present some affordability challenges in the housing market. With this said, we expect the demand for rental housing to continue to rise for the foreseeable future. Therefore, it may be a great time to invest in an income-producing property. Do you have questions about investing in real estate? Contact our real estate investment specialist today!
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!
