Have you seen the news reports lately about Florida? If not, stay tuned, and continue reading. It may be old news, but do you remember what happened in Surfside, Florida on June 24, 2021? I will let you know at the end of my column.
Besides New York and California, Florida appears to be losing its appeal for sun worshipers when retiring would flock to the Sunshine State due to its warm climate and sunny days. However, climate change, hurricanes, tornados, and floods have greatly impacted many coastal areas in the U.S., especially Florida. Those events have devastated the state in 2024.
Did you know that cyclones have hit the region and resulted in over 10,000 deaths, and most had resulted prior to the start of meteorologists conducting hurricane hunter flights in 1943? More devastating is the total cumulative damage costs of over $300 billion, based on 2018 dollars. This is only based on damage from Hurricane Andrew, Hurricane Irma, and Hurricane Ian in the 1992, 2017 and 2022 seasons, respectively.
Just this year, Hurricane Milton came on shore in Siesta Key, Sarasota County, where it brought at least a 10-foot storm surge and ferocious winds and tornados that accompanied the storm. It destroyed and left in ruins Orlando, Tampa, Saint John and throughout Hillsborough County. Palm Beach, Broward, St. Lucie, and Brevard counties were hit badly, and 100 tornado warnings were issued as Hurricane Milton hovered over the state.
More critical it tore off the roof of Tropicana Field in St. Petersburg, home of the Tampa Bay Rays, Florida’s Major League baseball team. At that time 29% of the state had no power and 50,000 linemen from as far west as California travelled to assist in restoring the energy grid.
The damage from Hurricane Helene and Milton is calculated to be in the billions, and the total cost is still being tallied. All these disasters are raising and, in most cases, doubling and tripling home and building owners costs. This will continue to be a burden for the majority of those living in the effected locations.
Due to these catastrophic events, it has caused an exodus out of Florida. Moreover, prices have been plummeting, and this is mainly due to the overall excessive cost of homeowner insurance, increased common charges and assessments by the condo associations.
Most important are the new inspection laws passed in 2022, covering all of Florida whereby condo associations have nine days, from the writing of my column, to submit inspection reports for their buildings and to collect additional money to pay for any needed and required repairs.
Condo owners are reporting that new condo rules are resulting in magnifying and increasing
fees and influencing shocking assessments. Moreover, the financial burden on retirees have been monumental and devastating, causing many to leave and others now considering selling and getting out. This is having a direct impact and effect on prices and sales, as inventory has been skyrocketing. I have several friends that had their insurance costs triple from $9,500 to over $30,000 per year.
Many insurance companies are exiting the state due to the humongous loses that they have been experiencing. However, United Van Lines did a study this year. Prior to the hurricanes, employment was the No. 1 reason in the last three years why people moved between states with a third citing and admitting it was the main reason. Thirty-two percent moved due to wanting to be near family and was also due to the isolation caused by the Covid-19 pandemic.
The balance of the people moved due to worsening weather and climate change. The population declined in 17 states in 2021, according to a yearly report from the Pew Charitable Trusts Fiscal 50 Project. This was intensified by Covid-19 deaths and continued restrictions from immigration.
In 2024, South Carolina, North Carolina, and Wyoming were the top three states where people and families were flocking to. California had the greatest number of people and families moving out due to real estate taxes and the cost of housing.
However, this year, those that reside near a major or even a minor waterway, have experienced severe increases in homeowner’s insurance, as well as real estate taxes. The costs of housing and daily living are pushing people to leave Florida in droves, adding to increased inventory and prices being impacted.
But people and families are still moving south due to lower cost housing in those previously noted states, lower real estate and State taxes, lower cost of living and warmer climates. However, Florida may never be the same.
Florida appears to have lost its shine for it has the second largest population loss followed by New York at No. 3, Texas No. 4, and Illinois No. 5.
The answer to the initial question of what happened in Surfside, Florida on June 24, 2021 at 1:22 a.m. was the unfortunate collapse of Champlain Towers, killing 98 people and to date was tied with the Knickerbocker Theatre collapse as the third-deadliest, non-deliberate, tragic, and devastating structural engineering failure in U.S. history.
So plan ahead to ascertain and determine where you want to move to whether retiring or relocating as your decision will have a positive or a devastating effect. Do your due diligence, homework, and take your time.
Philip A. Raices is the owner/broker of Turn Key Real Estate at 3 Grace Ave. Suite 180 in Great Neck. For a free 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns he can be reached at 516-647-4289, Phil@TurnKeyRealEstate.Com or via Li-RealEstate.Com
