Rising Costs Cause Turnaround In Florida's Growth

Florida seems to be losing its edge at attracting new residents. More people are moving out than in, and rising costs are taking the blame.

2 minute read

October 10, 2007, 6:00 AM PDT

By Nate Berg


"For Americans on the move, Florida has become a less-appealing destination. Moving company Atlas Van Lines brought 6,700 families into Florida last year and took 8,000 out, the first time it has moved more out than in. The number of people from other states who switch to a Florida driver's license is down more than 8% from last year. And the state's crowded schools actually lost students last year, prompting many counties to cut back on their construction schedule and, in some cases, look to close schools. While foreigners continue to arrive at a rate of about 100,000 year, migration from inside the country is slowing."

"Florida's pull has been weakened mostly by rising costs. Though real-estate prices are now falling, the median price for an existing single family home, at $231,900 remains 64% more than five years ago. That kind of price appreciation has increased property taxes, especially for newcomers and for snowbirds, whose primary residence is out of state. Florida is also recovering from a spate of hurricanes that have pushed up already high property-insurance rates. A two-tier tax system hits newcomers and part-time residents harder than long time homeowners."

"Florida is also dealing with new competition. Looking to tap the economic boost seniors can give, many of the South's less-expensive, relatively warm states have been reaching out to seniors and fiddling with their tax laws in the hope of grabbing more retirees."

Saturday, September 29, 2007 in The Wall Street Journal

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