Florida’s Rising Costs Push Residents Out

Florida’s population boom is feeding job growth and economic expansion, but it comes at a price that could force some working-class families and retirees out of the state. A study by the University of Central Florida projects continued economic growth, yet the rising cost of living has many residents reconsidering their place in the Sunshine State. Ruth Allen, who moved from Michigan to Central Florida in 2021, has decided to leave Florida due to increased living expenses.

Initially attracted by the ability to work from home and more lenient COVID restrictions, Ruth and her husband settled in Polk County. They were impressed by the local environment, including attractions like Gulf beaches and Disney World, and local governance by Polk Sheriff Grady Judd. However, the Allens discovered significant downsides, such as property tax increases when homes change owners and soaring home insurance costs driven by storm damage, climate change, and fraud.

After three years of trying to manage their budget, they decided to move to Tennessee, where they expect to save at least $300-400 every month. “If we’re lucky, we will be gone by the end of September,” Allen noted. Ruth Allen’s story is not unique.

Many who moved to the Tampa Bay area during the pandemic are leaving due to the increased cost of living. Amber Flanders, originally from Tampa, relocated to East Tennessee. She remarked on the affordability, noting, “There’s nothing like a beach sunset, but a mountain sunset is a very close second.” Flanders’ new home on two acres cost less than $300,000, and she saves thousands annually on home and car insurance, groceries, and utilities.

Melissa Lambert recently moved from South Tampa to South Carolina, driven by financial constraints.

Cost of living drives exodus

“My husband was like we just got to get out of here because in a couple of years we won’t be able to afford anything around here,” Lambert explained.

Despite missing Tampa, they find it increasingly unaffordable. Cody Sydenham and his family moved to South Dakota, escaping the high costs of living for more affordable alternatives like snowy mountains and the northern lights. They are saving notably on utilities and rent.

“One of the biggest reasons we left was the cost of living,” Sydenham stated, describing the lower energy bills that heavily influenced their decision. The rush of new residents during the pandemic significantly drove up demand and prices for homes and other essentials. Bay real estate broker associate Mike Lavoy observed that increased demand resulted in offers on homes sight unseen, which in turn elevated food prices.

Despite the exodus of residents like Ruth, Amber, Cody, Melissa, and Paul Kraff—who moved from Tampa to North Carolina due to lower living costs—the population continues to grow with new residents from Northern states who can afford the rising expenses. “I still have a lot more people moving into the state than out of the state,” Lavoy mentioned. As long as the economy remains strong, Florida will likely continue to attract new residents, potentially maintaining high housing prices which can exceed the affordability threshold for many working-class families and retirees.

In Tampa-St. Pete, a single adult needs to earn around $94,000 a year to live comfortably. This financial reality is causing many to seek more affordable living conditions outside Florida.