Florida is a very popular state to live in and to retire.
If you have thought about moving to Florida, chances are you are going to quickly see that Florida can be a bit expensive.
There are many reasons behind this, and we are going to look into several of them.
Some of the reasons on our list may surprise you, and others, you were probably already expecting.
If you are planning a move to Florida anytime soon, here are the things that you should really consider prior to packing your bags.
Why Is Florida So Expensive? (Top 10 Reasons)
1. Homeowner’s Insurance
The homeowner’s insurance rates in Florida are some of the highest in the country.
As you can imagine, this has everything to do with the weather and climate in Florida.
The most obvious reason for the homeowner’s insurance being so high is the fact that there are plenty of hurricanes in Florida.
The hurricanes tend to hit this state harder than almost any other state in the country.
The peninsular shape of Florida, combined with the way the storms roll off the coast of Africa, makes it a prime spot for hurricanes.
When these storms move through, they tend to cause serious damage.
Even though there are different building codes in Florida for hurricane protection, if a category four or five were to come through the area, there can be total destruction.
Homeowner’s insurance needs to be in place to cover the losses.
Unfortunately, in areas where there are more losses, the cost of the homeowner’s insurance will inevitably increase quite a bit.
Eventually, the homeowner’s insurance company has to charge a premium for their services so that they can stay in business and fix all of the homes that have damage.
In addition, the homeowner’s insurance companies also take care of issues related to things like fire or problems caused due to humidity and water in the Florida area.
In essence, it is challenging to keep a Florida home in great condition for the long term.
A great homeowner’s insurance policy is going to make this possible, but those are unfortunately going to come at a premium.
2. Proximity to the Beach
One of the most impressive benefits of being a Florida resident is that you will have close proximity to the beach.
When you live in Florida, you can choose the entire east or west coast and be just a few miles from the shore.
This is quite a bit of space.
When you look at states like Georgia or South Carolina, the coastline is not nearly as long.
This makes it even more desirable to head to Florida because you have beautiful beaches and plenty of access to them everywhere.
The problem, of course, is that proximity to the beach almost always means that property values and costs are going to go up.
People love to be close to the beach, and those with lots of money have no problem paying for it.
When you pay a good amount of money to live near the beach, this means the next person will also have to pay.
Eventually, costs continue to increase, and the entire state near the coastal areas becomes more expensive.
Living in Florida comes with its benefits, and the proximity to the beach is undoubtedly one of them.
If you end up living somewhere far from the water, you may pay a little bit less.
However, if you want to enjoy all that Florida has to offer, choose a spot within driving distance to the water.
For most of the state of Florida, the seasons are all very mild.
There are some areas in Northern Florida that will see a colder winter, but for the most part, the temperatures throughout the state of Florida are incredibly mild.
You will get very nice weather throughout the majority of the year.
The weather in Florida is easy for most people as you won’t need more than shorts, t-shirts, and a light jacket.
Elderly people or those who get sick often find that they are healthier when they live in Florida.
The warmer weather tends to be easier on the body, and it makes it so that you don’t have nearly as much stress on yourself as you are making your way around the course.
The climate in Florida can be a little difficult in the summer.
It tends to get very hot, and some people will be a bit bothered by the temperatures that are over 90 degrees every day.
However, the perfect weather conditions where you don’t have to shovel snow are going to make Florida one of the more expensive places to live.
The fact that you can always walk outside and be comfortable brings a great deal of appeal.
Those who need or want to spend more time outside will have no problem doing so with the climate in Florida.
Florida is a very popular place to retire.
The fact that many people plan to work for their entire lives and then head to Florida certainly makes it a popular place to live.
When a place like this gets more popular, the pricing also continues to go up.
Retirement is something that we all strive for, and when we retire, we expect to live in a great area with all the amenities.
The Florida neighborhoods and towns are designed to help support this dream.
This means that you will have access to all the things that retirees want the most of, whether that’s golf, fishing, or boating.
The communities designed in this way are a great choice, yet they can also be very expensive.
Many retired people who move to Florida have quite a bit of money.
As expensive as Florida looks or seems, moving from New York or California to Florida can be quite achievable for those with a high income.
Retirement also offers people access to restaurants and other forms of entertainment.
Having this type of entertainment is a great way to transition through your adult years, yet it is going to cost you extra money.
For younger people who live in or move to Florida, you will still be paying for the retirement convenience that the state offers.
There is no question that Florida is a popular place to live.
The way that communities are developed in Florida is considerably different from a lot of other places in the country.
Also, Florida has a tremendous number of condominium and townhouse options that appeal to those who don’t want to take care of an entire house.
Florida is also popular because of things like golf courses and boating.
Of course, there is Disney World, the Keys, and countless other tourist destinations and attractions.
This is not a sleepy little spot where you can kind of sneak in and find out that it is a great place to own a home and start a family.
Florida has already been discovered without a doubt, and you will be competing with millions of other people who are also interested in making a life for themselves in Florida.
Typically speaking, more popular states can charge higher prices for things because they have plenty of people to charge.
For instance, if you think Florida is too expensive, chances are there is another person ready to move who thinks the pricing is worth it.
Essentially, most of these Florida neighborhoods and towns are very confident that more and more people will continue to move to the area.
6. Vacation Destination
Florida is not only a place to live as it is also a very popular vacation destination.
When people think of Florida, one of the first things that they think of is Disney World.
Having Disney World in the center of the state will absolutely make Florida more popular.
Disney World is not just a location people are looking to visit from other states, but it is something that brings in tourists from all around the world.
When people come to Orlando to visit Disney, they are going to be in vacation mode.
Traditionally, when people are on vacation, they have a much easier time spending money.
Most of these trips have been saved up for and prepared for quite some time.
This means when it comes to local restaurants and entertainment, the pricing may be high, but people have no trouble paying for it.
This is happening in areas throughout the state of Florida.
Tourists come for a weekend, a week, or even for a few months.
They fill up local towns and shops and restaurants.
When this happens, the local areas realize that they have more customers than they once had, and the pricing can start to go up.
Many Florida residents will tell you that they prefer to find restaurants and entertainment that are not in the local downtowns because they are too filled with tourists.
Florida is a very transient state, and it has a much different feel than other areas in the country.
This has quite a bit to do with the fact that, when you live in Florida, you are almost always having to deal with those who think Florida is purely a vacation destination.
There are still some spots in Florida that are not quite as touristy although, as a whole, the state has a large tourism industry, and this makes it a bit more expensive overall.
7. Car Insurance
Many people are surprised to learn how expensive car insurance is in Florida.
The rates that you pay in Florida are almost double what you will pay in other states.
Car insurance is going to become a large portion of your monthly expenses when you live in Florida.
The reason Florida is so expensive for car insurance is that it is not technically the safest place to be driving.
As you will notice with insurance, when more risk is involved, the pricing tends to increase.
The higher risk will impact the bottom line of the company you are purchasing your insurance from.
There are many motorists in Florida who are uninsured.
This means that they are driving their cars around with no insurance.
Should they end up hitting your car or causing you injury, your insurance company is going to have to pay for it.
Since the cost will be on you, then your insurance policy has to be prepared for this.
There are some policies that allow you to waive the right to any help with your car accident should you get hurt by an uninsured motorist.
Although this will save you money upfront, it is certainly going to cost you some money when something happens.
The other reason that Florida is a high-risk state for driving is because of the tourists.
These people visiting the state don’t know where they are going, and they are distracted with all they are trying to do in a day.
This, of course, leads to some extra confusion while driving and, in turn, more accidents.
The price of car insurance in Florida is a reflection of the danger involved with riding on the roads in the state.
However, once you get to Florida and live there, you will notice that most of the driving is rather similar to the rest of the country.
If you are aware and alert while driving, you should not experience any issues.
8. Condo Association Fees
As we mentioned, many of the people who live in Florida are going to live in a condo or a townhouse.
The condo or townhouse is a perfect living solution for an older couple or for younger people who don’t have time to do home maintenance.
With a condo or a townhome, you are only responsible for maintaining the inside of your home.
The outside of the building, the roof, and the landscaping are covered by the condo association.
This makes it quite easy to enjoy all that Florida has to offer when your expenses are cut down quite a bit.
Of course, this convenience comes at a price.
When you start looking at some of the condo or townhouse prices in Florida, you may realize that they are rather fair.
This is a great thing until you look at the monthly fees for living in the condo.
Sometimes these fees are going to be $1,000 or more a month.
The fees usually include the water bill, and sometimes they will also give you access to local amenities like a pool or exercise facility.
The problem is that these HOA fees are rarely going to go down in price, and they will make it difficult to afford your property long term.
When people buy condos in Florida, they can expect to pay expensive condo association maintenance fees.
In addition to all of the services employed to keep the condo looking good all year, there are also reserves set up to eventually replace the roof or deal with any other long-term issues.
Regardless of the reason you decide Florida is for you, you must make sure you are ready to pay for the fees.
Florida is filled with ways to stay entertained.
You will quickly notice that when comparing the cost of living in areas, entertainment factors need to be considered.
The more enjoyable it is to live somewhere, the more it is going to cost.
Florida has quite a few large theme parks, but in addition, they are known for dining on the water and even live entertainment.
During the day, many Floridians will play golf or spend time at the beach.
At night, they expect a happy hour with live music.
This type of lifestyle may feel a bit like a vacation, but it can very much be the Florida lifestyle for a wide range of people.
This access to entertainment and things to do is going to keep the prices in Florida relatively high.
This is a place where you can live and find that you are very rarely bored.
The nice weather makes it easier for there to be more to do outside as well.
With more people looking for activities outside, Florida sets itself up as a perfect solution.
Another great thing about Florida is that, if you are smart about where you go and spend your time, the entertainment doesn’t have to cost you that much.
Of course, the fact that there are a variety of entertainment factors in Florida will undoubtedly end up costing you more overall.
Florida is a great spot to live if you like to stay busy and enjoy your time outside and with friends, but you need to be prepared to pay a bit more for this opportunity.
10. Increasing Real Estate Prices
For many years, people believed that the real estate prices in Florida were relatively fair.
The lower pricing was mostly because of the fact that there are flexible living options in Florida.
The condos or townhouses may not have as high of an initial price, and it makes the real estate pricing seem fairer.
However, once you calculate the condo association fees and the rising costs, the real estate in Florida is not all that inexpensive.
For the last few years, the pricing in Florida has continued to go up.
Like any other area in the country, there are always dips and spikes in the real estate market.
Florida tends to take these dips and spikes quite hard because of the number of people living there and wanting to take advantage of all Florida has to offer.
Although the real estate in Florida is going to be cheaper than Manhattan or San Francisco, there are still some very expensive small single-story homes.
When you look at any areas near the water or with a view of the water, you can expect to pay considerably more for your home.
The cost of your house will also be increased significantly by the homeowner’s association fees.
Certain parts of Florida have these beautiful-gated communities with pools, golf courses, and even a guard at the gate.
These are all going to come at a cost and be part of your monthly homeowner’s dues.
This needs to be considered in addition to your mortgage, the taxes, and more.
Although the state of Florida has no income tax, there are plenty of other ways to end up spending your money when you live in Florida.
Hopefully, these ten reasons have helped you to see all that Florida has to offer and why it is priced so high.
Many people find that, even though the costs are high, the prices are worth it.
Living in Florida has tremendous benefits when it comes to outdoor life, time in the sun, and relaxation.
If you can find yourself a place you can afford yet still take advantage of the benefits of the state, you will likely be very happy with your decision.