Florida is the least affordable place to live in the USA

[CalGalTraveler]

Florida is the least affordable place to live in the U.S.

Rent and home prices in the Sunshine State have hit stratospheric heights, making it the epicenter of America's housing crisis.

www.cbsnews.com

 

[Ralph Sir Edward]

This happens whenever a place attracts a large number of affluent people from somewhere else.

 

[buzglyd]

I've been shopping for a house in the Tampa Bay Area for more than a year. Listings are pending before you can even get to the house to see it. Old, small homes are way overpriced if they are anywhere near the water.

I still don't know about least affordable. Prices for regular stuff are much cheaper than California. If I go out to eat in Tampa and go out to eat in San Diego, SD is easily 40% higher.

I snagged a nice rental in Clearwater beach at a decent price (at lease compared to San Diego) and I will remain a renter until the recession hits and things go on sale.

 

[Ty1on]

I find this exceedingly hard to believe.

Less affordable than NYC, most of California, Mass?

 

[buzglyd]

I find this exceedingly hard to believe.

Less affordable than NYC, most of California, Mass?

You are correct. This headline is poorly written since the article is just about the housing market. I can give examples just based on living in two places. My electric bill for my apartment in Tampa with the AC running non stop reaches a high of about $80 in the summer. $50 the rest of the time.

My gas/electric bill in Carlsbad in a larger condo with no AC is now $240. Don't get me started about gasoline!

 

[PigsDad]

I think part of the reason that RE prices have risen so much in the last years or so in FL is that prices were stagnant there for years. We bought a home in Bonita Springs a little over a year ago (Jan, 2021). Prices were starting to rise and we paid about 15% more than what they were selling for a year earlier. But since then, our exact same house model has been recently been selling for 70-100% more than what we paid! (We could flip the house today for a huge profit if we wanted.)

But looking at the history of sales, our house was built in 2005 and originally sold to the first owner for only 5% less than what we paid in Jan, 2021. So basically the house had not increased in value for ~16 years. Even after the huge run up in price in the last year or so, over the course of 17 years (since it was built) the average annual increase is moderate at best.

Kurt

 

[ScoopKona]

Real estate in Florida is easy to understand. Draw an X-axis. Label it "price of house." Draw another X-axis. Label it "proximity to ocean." Draw a THIRD X-axis. Label it "times per day bugs/retirees interfere with your life." And a final X-axis. Label it "cost to insure house." This one is inverse to the first three.

 

[Ralph Sir Edward]

I find this exceedingly hard to believe.

Less affordable than NYC, most of California, Mass?

Affordability is not just based on cost of housing (living), but also the average wage in the location. Price divided by wage. The average wage is low in Florida.

 

[buzglyd]

Real estate in Florida is easy to understand. Draw an X-axis. Label it "price of house." Draw another X-axis. Label it "proximity to ocean." Draw a THIRD X-axis. Label it "times per day bugs/retirees interfere with your life." And a final X-axis. Label it "cost to insure house." This one is inverse to the first three.

Thats funny. Yes, insurance is insane. I was going for the house with the boat dock and a pet manatee and dolphin and then I learned what “flood zone” meant.

 

[emeryjre]

Is the article looking at the costs vs income. Incomes in California and New York are probably higher than Florida.

We were considering a condo in Daytona high rise about a year ago. Insurance, and upcoming assessments for deferred maintenance for entire structure and then the collapse in South Beach quashed that idea.

Still considering Margaritaville in Daytona area, but prices have been moving up quickly.

 

[ScoopKona]

Is the article looking at the costs vs income. Incomes in the nice parts of California and New York are probably higher than Florida.

Bold added -- that fixes the statement. Sure, people in Silicone Valley can make a ton of money. If they have "I know how to make tons of money" skills in Silicone Valley. Out in the sticks of both states, they're earning Florida wages, also.

A late friend, the Secretary General of the Conch Republic always said this, "Key West: Arkansas wages, Manhattan prices."

I don't even think about the price of the house anymore. They'll keep going up because nobody ever had a heart attack and died from shoveling heat. It's the Citizen's Windstorm Insurance. Have fun with that. And since it's run by the state of Florida, it's corrupt and inefficient. One of the big reasons I left Florida was because I saw the writing on the wall with the changing demographics. The entire state is moving to a "hoover away the assets of the dying" economic model. That isn't sustainable.

And we're getting to the point where we're running out of Greek letters for storms. They'll have to switch to Cambodian because that language has more than 70 letters. In order to stay home, I'd have to work eight months a year just to pay my insurance bill -- I'd never be able to retire. Just keep working until death to make those premiums.

 

[rapmarks]

Really strange comments. My Wisconsin taxes twice as high as Florida. My Wisconsin insurance way higher than Florida. My Florida house worth much more. My utilities are higher in Wisconsin. I won’t mention state income taxes

 

[joestein]

Don't even mention NJ. My brother (edited - to add his home is in FL) and I compared home values and RE Taxes. I pay almost double based upon value. Plus state income tax in NJ... how much in Florida.... oh yeah... Zero.

Plus insurance in NJ is through the roof. I pay $7500/yr for auto insurance for 2 cars with one 19 YO driver.

I bet the article is based upon average wage vs home price/rents. I didn't read it.

Between RE Taxes, lawn service and utilities - it must cost me $30K to run the house just for that. That doesn't include the super expensive insurance or state income taxes or a mortgage payment. But we work in Manhattan, so we have to suck it up. We do love our home and where we live.

 

[PigsDad]

Really strange comments. My Wisconsin taxes twice as high as Florida. My Wisconsin insurance way higher than Florida. My Florida house worth much more. My utilities are higher in Wisconsin. I won’t mention state income taxes

I agree -- a lot of generalization and exaggeration going on in a few posts here. Our primary house is in Colorado and is of similar value to our Florida house. While insurance and taxes are somewhat higher, other costs such as auto insurance and licensing, landscaping maintenance and general contract labor (home repairs, etc.) are much lower.

Kurt

 

[VacationForever]

When I read "Naples" in the first couple of paragraphs, I could not continue to read. Naples is an expensive and upscale neighborhood. BS reporting.

 

[buzglyd]

Don't even mention NJ. My brother (edited - to add his home is in FL) and I compared home values and RE Taxes. I pay almost double based upon value. Plus state income tax in NJ... how much in Florida.... oh yeah... Zero.

Plus insurance in NJ is through the roof. I pay $7500/yr for auto insurance for 2 cars with one 19 YO driver.

I bet the article is based upon average wage vs home price/rents. I didn't read it.

Between RE Taxes, lawn service and utilities - it must cost me $30K to run the house just for that. That doesn't include the super expensive insurance or state income taxes or a mortgage payment. But we work in Manhattan, so we have to suck it up. We do love our home and where we live.

Yes there is a big difference when FL housing prices are going crazy because everyone on earth is moving there and high tax/regulatory states have insane costs just for the fun of it.

 

[ScoopKona]

When I read "Naples" in the first couple of paragraphs, I could not continue to read. Naples is an expensive and upscale neighborhood. BS reporting.

Naples is fairly middle-of-the-road. If they led with Palm Beach or Key Biscayne, then I'd agree.

 

[geekette]

Yes there is a big difference when FL housing prices are going crazy because everyone on earth is moving there and high tax/regulatory states have insane costs just for the fun of it.

Some of us have never had interest in FL so not everybody on earth moving there.

I don’t know their net influx, but plenty of people planned for decades to retire there. I don’t get it. Heat, humidity, gators, hurricanes…. Not a situation I want for my final years. But, different people want different things. No big shock that a state (any state) wants to fill its coffers, but agree that bilking is distasteful. Anywhere.

 

[joestein]

I have wanted to move to Florida for the nice weather - except for the summer, which I won't spend there.

I have thought that I might travel for the summer. I had been thinking of 2 homes, but I think it might make more financial sense just to Airbnb somewhere for the summer. OR maybe use the last call feature of RCI. Who knows?

Maybe we will rent for a while to see what we like.

Joe

 

[Ralph Sir Edward]

I have wanted to move to Florida for the nice weather - except for the summer, which I won't spend there.

I have thought that I might travel for the summer. I had been thinking of 2 homes, but I think it might make more financial sense just to Airbnb somewhere for the summer. OR maybe use the last call feature of RCI. Who knows?

Maybe we will rent for a while to see what we like.

Joe

We call that "snow birding" here in Texas. Not impossible to do, but you need to pick your summer" place carefully.

 

[joestein]

We call that "snow birding" here in Texas. Not impossible to do, but you need to pick your summer" place carefully.

I guess I think of snowboarding as having a house up north to get away for the summer. I wasn't thinking that term was applicable for traveling, but I guess it could be.

 

[bizaro86]

Up here (Canada) the "snow birds" are those who travel south for the winter and then come home for the summer. Most often they stay South for just under six months. That way you don't need immigration status where you're going (usually US/Mexico/Carribbean) and can keep residency in your province of origin (so you qualify for health care).

Eg I have a retired aunt and uncle who spend 180 days every year in a park model trailer in Yuma, AZ. They go down in the fall and just got back.

 

[dioxide45]

I guess I think of snowboarding as having a house up north to get away for the summer. I wasn't thinking that term was applicable for traveling, but I guess it could be.

Did you mean snowbirding? If so, that term relates to people getting away from the snow. People going north for summer would not be avoiding any snow.

 

[joestein]

Least affordable to buy a house or rent. I was reading one time the r

Did you mean snowbirding? If so, that term relates to people getting away from the snow. People going north for summer would not be avoiding any snow.

I am blaming that on autocorrect. It should have said snowbirding.

 

[klpca]

First off - interesting article, quick read. The source is data from Realtor.com for rentals and home values. For @joestein there is even an anecdote about a family who moved from NJ to Florida. Small world.

Second, is there any place where housing costs aren't booming? (I am serious btw). Does any place have a flat growth in the real estate market? I for one would welcome a slow down in real estate prices and with a net outflow of Californians I would expect a softening in prices, but nope. Our local area was up 21% year on year for Feb. Ridiculous. But I am afraid that we have done this to ourselves by taking so much inventory out of circulation. Some REITs seem to have gone into the single family home markets, and some inventory has been converted to vacation rentals in suburban neighborhoods that are traditionally family neighborhoods. Things are topsy turvy.