And that’s when they can find policies. Due to climate change and increasingly costly hurricanes, insurance providers are pulling out of the most disaster-prone areas.
“Florida is the epicenter of the housing insurance crisis,” notes Redfin. “Premiums have soared as natural disasters have intensified and insurers have stopped doing business in the state.”
This year, condo owners are also dealing with an expensive requirement stemming from the Surfside condo collapse in 2021 that killed 98 people. Condos more than 30 years old—many of which are located in South Florida—had to undergo the state’s structural integrity reserve study, and condo associations needed to set aside reserve funds for potential structural repairs and maintenance by the start of the year. Those costs are passed onto condo owners, who have reported owing tens of thousands of dollars unexpectedly.
Those exploding costs, plus higher mortgage interest rates and sky-high home prices, have resulted in a glut of condos on the market that are going unsold.
The assessment, in particular, has complicated matters for potential Florida transplants, says Silva. Many are not even aware of the laws. When they find the perfect beach-front property, they then must negotiate with the current owner over who will bear the cost, which can be in the six figures. It’s complicating the process and causing some to rethink a move—or at least, reframe it.
“I don’t want to make it seem like relocating to South Florida is not ideal. I’m here. I love it,” says Silva. “It’s just not tax free. It’s not a huge savings. The reason you’re relocating shouldn’t be because of the tax savings. It’s gotta be for other personal reasons.”
