In the past few years, a lot of very rich people have moved to Florida to find warmer weather and lower taxes. Rich and famous people, like Jeff Bezos and Bethenny Frankel, have moved there because they don’t have to pay state or estate taxes and they can live in the sun. However, the move has often led to unpleasant shocks.
Financial experts say that many of their clients are finding that moving won’t save them as much money on taxes as they thought it would. Unexpected costs, like high condo fees, risks from climate change, and insurance rates, are hitting the transplants.
Henry Silva, a wealth management manager at Apollon Wealth Management in Miami, says that property taxes are one of the biggest surprises for buyers, especially in popular South Florida. These costs are going up all over the country, but in Florida they went up 47.5% from 2019 to 2024, affecting even people who have lived in their homes for decades. Republican Gov. Ron DeSantis wants to get rid of the levies completely, but the Florida Legislature is still looking into other choices.
There’s also protection. Bankrate says that the average cost of home insurance in the United States for a $300,000 home is $2,329 per year. In Florida, that cost goes up to $5,409. A lot of the best places to live in South Florida are in flood zones, which means that people who buy there have to pay more for flood insurance. Some people in Florida pay more for their property taxes and insurance than they do for their mortgage and interest. It’s also the most expensive place in the country to get car insurance.
In that case, they can find rules. Because of climate change and hurricanes that cost more and more, insurance companies are leaving the places that are most likely to have disasters.
“Florida is the epicenter of the housing insurance crisis,” says Redfin. “Premiums have soared as natural disasters have intensified and insurers have stopped doing business in the state.”
Condo and HOA fees going up
This year, condo owners also have to deal with an expensive requirement that came about after the Surfside condo fall in 2021, which killed 98 people. Many condos in South Florida that are more than 30 years old had to go through the state’s structural integrity reserve study. By the beginning of the year, condo associations had to set aside funds for possible repairs and care to the buildings’ structures. These costs are passed on to condo owners, who say they suddenly owe tens of thousands of dollars.
These are on top of the regular HOA fees, which are also going up in price, especially in parts of the state that are prone to hurricanes. A Redfin report from August 2024 found that the average monthly HOA fee rose 17.2% year over year in Tampa, but only 5.7% overall. The price goes up in Orlando and Fort Lauderdale soon after. Redfin looked at 43 metro areas and found that Miami had the highest typical monthly HOA fees. Still, the Florida lawmakers might be about to do something to help.
Because of these sky-high prices, mortgage interest rates, and home prices, there are a lot of condos on the market that are not being sold.
Silva says that the review has made things more difficult for people who want to move to Florida. A lot of people don’t even know what the rules are. When they find the perfect beachfront home, they have to talk to the present owner about who will pay the huge price. It’s making things more difficult and making some people rethink or at least reframe a move.
“I do not want to make it seem like moving to South Florida is not a good idea.” I’m here. He says, “I love it.” “It’s not tax-free, though.” It’s not a big discount. It shouldn’t be tax saves that are making you pack up and move. It has to be for personal reasons.””