US retirees keep flocking to Florida — but here’s why the state is seeing its ‘workers’ fleeing in droves
US retirees keep flocking to Florida — but here’s why the state is seeing its ‘workers’ fleeing in droves
Retirees looking for that rare combination of low cost of living, a warm climate and community have long been drawn to the Sunshine State. According to a recent report from the Florida Chamber of Commerce, in 2023, Florida welcomed nearly 637,000 people from other states.
However, as they flock to Florida, another demographic appears to be fleeing the state. The 2024 Florida Migration Trends Report noted that nearly 511,000 people left Florida to move to other states that same year. And nearly 25% of them were aged 20 to 29.
What concerns Kyle Baltuch, the Executive Vice President of the Florida Chamber Foundation, is the loss of so many of the state’s “workers.” As he told WEAR-TV News, it may not be a crisis at the moment, it is something the state needs to pay attention to for “long-term sustainability.”
Here’s why Florida is having a hard time holding onto its young people.
The report mentions a perceived lack of job opportunities is a leading factor young people cited for leaving Florida. Young professionals who’ve recently graduated say they’re not finding the early-career job opportunities available to be plentiful.
But that doesn’t necessarily mean there’s an actual lack of jobs.
According to a report from the U.S. Bureau of Labor Statistics, Florida saw job openings go up between September and October 2024, from 405,000 to 463,000 openings.
So why are so many young people looking elsewhere for work? The Florida Chamber of Commerce report suggests that a lack of awareness of job opportunities may play a big part in why young workers are choosing to live and work elsewhere.
Wages may also be a factor. According to the May 2023 Occupational Employment and Wage Statistics report from the U.S. Bureau of Labor Statistics, the mean annual wage for Florida workers was $60,210. Meanwhile, the mean wage for all U.S. workers was $65,470
Data shows that other East Coast states, like Maryland and Virginia, have higher median wages than Florida. Younger workers may be migrating out of state in search of even more plentiful early career opportunities and higher salaries.
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While Florida has long been considered a more affordable state to live in, it has become increasingly more expensive these past few years — especially for homeowners and aspiring homebuyers. All across the state, property values have continued to rise since the pandemic-driven housing boom, driving up property tax costs.
Many younger residents are finding owning a home in the Sunshine State to be more expensive than they’d anticipated. An October 2024 Redfin report found that Florida is home to three of the five major U.S. metros where property tax bills have increased the most since 2019.
The typical homebuyer in Tampa now pays $250 more per month for property taxes — nearly 57% more than they would have paid in 2019. Meanwhile, the median monthly property tax payment in Jacksonville is $228, and $367 in Miami.
Natural disasters have also impacted housing costs. Many insurers have increased their homeowners insurance rates or eliminated coverage in parts of the state due to growing natural disasters causing damage to insured properties.
As for what’s to come, a report from Houze suggests that Florida’s home prices may drop in 2025.
A report from Houze, which analyzed data from Redfin, suggests that home prices may drop in 2025. Redfin’s latest numbers show the current median home sale price was $410,000 — a year-over-year increase of 1.8%. And the data also shows that homes are sitting on the market for 70 days, an increase of 20 days year-over-year.
And if mortgage rates drop later this year, younger buyers may finally be able to get a toehold in the housing market.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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