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Florida‘s sunny beaches and warm climate make it an attractive place to buy a home. However, there are disadvantages to owning a home in the Sunshine State that buyers should consider before taking the plunge. Evaluating the drawbacks of Florida in advance will help you make an informed decision.
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Rising housing and living costs
Florida has a higher cost of living compared to other states, especially in popular metropolitan areas. This puts pressure on the budgets of even wealthy buyers.
“The cost of living in Florida is higher than the national average,” said Ronan Hannan, principal at Proven Partners. “This is particularly true in central cities like Miami, Fort Lauderdale and Tampa. “Housing costs, in particular, are high.”
The median sales price in Miami is $620,000 as of April 2024, according to Redfin. And even if you can afford the house, consider the costs of insurance, utilities, food, and other necessary living expenses.
Taking these costs into account before you buy, rather than after, will allow you to make realistic projections of your budget. Without adequate savings and income, Florida’s expensive lifestyles can lead to buyer’s remorse.
Find out more: Real Estate Market 2024: 5 Florida Cities That Are Suddenly Affordable
Unpredictable and destructive weather events
Additionally, Hannan noted Florida’s vulnerability to hurricanes, tornadoes, floods and other disasters that often damage property. Although typically short-lived, these extreme weather events also cause disruptions to power and water service. For some, preparing and recovering takes time, effort and money, which for some would be better spent on something else.
Hannan added: “The significant damage these events can cause to homes and properties makes purchasing decisions difficult. Even if these severe conditions do not cause damage to the home, they occasionally make life a little uncomfortable due to power outages and disruptions to essential services.”
Storm repairs and replacements can put an unexpected strain on your budget. Even the smallest annoyances, like purchasing generators and supplies, can disrupt your lifestyle. If you’re expecting paradise, you may be surprised by Florida’s volatile weather.
Very high insurance premiums
Due to Florida’s elevated risks of hurricanes, storms, and floods, home and flood insurance rates in Florida exceed those in most of the country. Hannan pointed to recent data showing Floridians pay nearly four times the annual national average for home coverage alone.
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“According to a 2023 report from the Insurance Information Institute, the average annual home insurance premium in the United States is $1,700,” Hannan said. “In Florida, the average premium is $6,000.”
For buyers moving from states with lower-cost insurance markets, Florida insurance costs can cause a serious surprise.
“I don’t know anyone in Florida who hasn’t had trouble finding affordable homeowners insurance,” said Nicholas Ritacco, portfolio manager and chief financial officer of IB Global Real Estate Fund. “More and more insurance providers have abandoned the Florida market, leaving us with fewer options.”
Ritacco noted that climate change is partly responsible for rising insurance prices. “Reconstruction after a natural disaster puts pressure on labor and materials, and those payments from insurance companies raise the level of real risk for insurers and therefore (premiums increase),” he said he.
Suffocating heat and humidity
Florida also exhibits stifling humidity levels in the warmer months that make enjoying time outdoors a challenge. Breathing humid air and keeping buildings cool is also problematic. For many residents already dealing with respiratory issues, humidity exacerbates health and comfort issues.
“The humidity in Florida is very high, especially during the summer months,” Hannan said. “This makes it difficult to stay cool and comfortable, even indoors. But the most important thing is that humidity aggravates respiratory problems.”
If you are a homebuyer with medical sensitivities, the state’s climate may present physical limitations and burdens that you may not have expected.
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This article originally appeared on GOBankingRates.com: 4 Reasons You Might Regret Buying a Home in Florida
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