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Can't retire in Florida any longer

By
Real Estate Broker/Owner with Condoideas Realty Group

Florida's once-booming condo market is now grappling with a crisis that has left many retirees who helped shape the state's prosperity, facing uncertain financial futures. Some retirees epitomize this struggle, having invested in their dream retirement in Florida, only to find themselves questioning its affordability. Countless Floridians feel disillusioned by the escalating costs that have tarnished the state's once idyllic allure.

The surge in homeowners insurance costs, soaring homeowners association (HOA) fees, and stringent condo regulations have transformed Florida's real estate landscape. For example in a condo like the Continuum the HOA fees are at $2.50/sqft/month.  What felt like Florida was such a paradise... now feels like it’s paradise lost now. This sentence encapsulates the disillusionment felt by many.

Despite a decline in condo prices in major Florida cities, the aftermath of the COVID-19 pandemic has left costs still significantly higher than pre-pandemic levels. Realtors highlight the substantial increase in monthly maintenance fees, causing prospective buyers to reassess their plans.

Extreme weather events, such as storms and hurricanes, have exacerbated the crisis by driving up insurance premiums or prompting insurers to exit the market altogether. Florida's average annual home insurance cost of $4,218 far exceeds the national average, further burdening homeowners.

The tragic Surfside condo collapse in 2021 prompted stricter regulations and increased inspection requirements for condo buildings, leading to higher fees aimed at building reserves for repairs. These additional costs have made it challenging for sellers to offload properties, exacerbating the market's downturn.

The plight of Florida's seniors, who form a significant portion of the state's population, is particularly acute. Many retirees, on fixed incomes and limited savings, find themselves unable to cope with rising expenses. Retirees are being punished for it.

The struggles of Florida's retirees are compounded by difficulties in selling their condos. With a surplus of condos on the market, especially in 55-plus communities, sellers face prolonged listing periods and minimal interest from buyers. 

In conclusion, Florida's condo market crisis underscores the challenges facing retirees and homeowners alike. The state's once-enticing appeal has been marred by escalating costs, regulatory hurdles, and a sluggish real estate market. For many, the dream of retirement in the Sunshine State has become increasingly unattainable, casting a shadow over Florida's future.

Michael Elliott
Fathom Realty - Burlington Township, NJ
Burlington, New Jersey Residential Sales

Wowza, good info, thank you.   I just followed you, please do likewise!

Apr 22, 2024 12:17 PM
Daniela Pellicciotti

Thank you

Apr 24, 2024 12:42 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Daniela Pellicciotti it is unfortunate that this is happening in FL, but as bad as it is, it is still more affordable than here in the Northeast.  It is becoming hard to retire anywhere.

Apr 22, 2024 01:01 PM
Daniela Pellicciotti

I know I'll retire in Europe 

Apr 24, 2024 12:42 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Daniela - interesting. . .  

Apr 22, 2024 01:05 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The insurance companies love to collect annual premiums but do not like to cover claims so that causes the burden to shift back with higher premiums. The claims in Florida have caused companies to raise rates all over to offset the loss in profits.

Apr 22, 2024 04:45 PM
Daniela Pellicciotti

Yes I was talking to a friend who told me she will pay off her mortgage in a few years and stop paying hurricane insurance because she thinks that if a hurricane hits with the savings she will have done she will be able to repair them without a claim.

Apr 24, 2024 12:44 PM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Welcome to the Rain. Enjoyed your blog page, and I added you as a follower. I would love the follow back. Also, then we both get 50 points. Bill

Bill Salvatore, Realtor- Arizona Elite Properties

Apr 23, 2024 05:14 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Daniela... this does not surprise me. We are seeing many Florida retirees moving up to the Carolinas... we call them halfbacks.

Apr 23, 2024 05:33 AM
Daniela Pellicciotti

Lol I had no idea they had a name ;) It's true that I know one who decided to build a house there

Apr 24, 2024 12:45 PM