Florida has become one of the hottest states in the country for its sleepy beach towns and retirement communities. In a pandemic-fueled migration frenzy, people flocked to Florida for lower housing costs and favorable year-round weather. In 2023, South Carolina and Florida were the two fastest-growing states in the nation, growing by 1.7% and 1.6%, respectively, according to the U.S. Census Bureau. In 2022, Florida was named the fastest-growing state in the country — a title it hasn’t received since 1957.
Several Florida cities rank high on the U.S. News Best Places to Retire and Best Places to Live lists. But Florida isn’t just sunshine, beaches and budget-friendly housing. Homeowners in the Sunshine State face some unique challenges.
It’s important for prospective buyers to be aware of the challenges of homeownership in the land of eternal summer. Here are five hard truths about owning property in Florida.
[Why Naples, Florida, Is the Best Place to Live in 2024-2025]
1. Termites
In Florida, it’s not a matter of whether you will have termites or not — it’s when and how often you will have them.
There are 20 different types of termites in Florida, according to the University of Florida. Termites, of course, aren’t exclusive to Florida. These pesky wood-eaters love warm weather and can be found in every state except Alaska. But Florida suffers from the worst termite damage, according to a report from Ground Works, a national foundation and water management solutions company headquartered in Virginia Beach, Virginia.
Termites that live underground, aptly called subterranean termites, are the most common type of termites in Florida. While small in size, these concealed critters can cause major damage if they go untreated. It’s such a widespread issue that a report published by the University of Florida predicts half of homes in south Florida will battle subterranean termite infestations by 2040.
Treatment options, such as tenting the home or addressing the soil, will depend on the type of termites present. The cost can range from just over $1,000 to $6,000 or more, depending on the treatment needed and the size of the home.
It’s also important to know that treatment doesn’t mean your home is protected for life. New infestations from the same or different termite species can force you to treat the same home multiple times. Most pest control companies offer a bond to cover the house for future treatments over a two- to five-year period because reoccurrences are so common.
[READ: Termite Inspections: Cost and What to Expect]
2. Sinkholes
While sinkholes are not super common, Florida has more sinkholes than any other state, according to the U.S. Geological Survey.
Florida’s delicate foundation of limestone can easily erode with groundwater movement. Eventually, this creates a cavern that can collapse from the weight above it. Areas with abundant freshwater springs, like central and northern Florida, are more susceptible to sinkholes than other areas of the state.
Technically, all Florida homeowners insurance is required to provide sinkhole coverage. However, there is a lot of red tape around what would be covered by such a policy. It will depend on the quality of the ground structure and most times insurance will not cover sinkholes that did not result in structural damage to the home.
According to Florida’s Department of Financial Services, a “crack stretching across an interior wall or floor tiles popping up from the home’s foundation may not constitute structural damage,” and thus not be covered under your policy. You can mitigate your risk of this by conducting sinkhole testing on a prospective home before buying.
3. Hurricanes and Flood Risks
Since 1851, Florida has been hit by 124 hurricanes, the most of any state in the country. And 41 of the storms that made landfall were Category 3 or higher, which means they had sustained winds of at least 111 miles per hour. Hurricane season lasts five months in Florida, from June 1 to Nov. 30. That’s a large window, and one that many homeowners coming from other states aren’t prepared for.
2024 was a rough year for Florida homeowners after back-to-back hurricanes Helene and Milton hit the Gulf Coast. According to the Office of Insurance Regulation, the two hurricanes resulted in $4.775 billion worth of property damages and insurance claims as of November 2024.
Knowing hurricanes happen in Florida is one thing. Dealing with them is another. “Going through a hurricane gave me and my husband a totally new perspective,” says Rae Miller, a Florida homeowner who moved to central Florida during the pandemic. “Seeing how it hit other parts of the state helped us realize the realities of living in a location with hurricanes.”
Miller says the experience will better prepare the couple for future storms.
“We consider ourselves lucky because we only had one blown-down fence, a handful of fallen tree limbs and some flooding,” Miller says. “We’re still happy with our decision to purchase a home in Florida, but extra pleased we bought a home inland, which reduces our risk of hurricane damage.”
Homeowners can protect their homes from storm damage through a standard insurance policy. However, these policies normally only cover damage from wind or debris — not flooding. Storm surge flooding is typically excluded unless an optional rider or separate flood insurance policy is purchased.
[READ: Can You Build a Hurricane-Proof House?]
4. Insurance Issues
The high cost of homeowners insurance premiums in Florida can be a rude awakening for those moving from lower-cost states. Florida has the highest homeowners insurance premium out of any other state, with an average annual premium of just under $11,000 according to data from Insurify.
But there’s also the challenge of needing to buy additional coverage for full protection.
Florida law requires all homes in “high-risk zones” to purchase flood insurance. The cost will depend on your home’s unique risk. New homes in Florida are being built to specific hurricane and flood ratings, which lowers the cost of annual flood insurance. But if you are in a high-risk zone or in a home that doesn’t meet these new standards, this insurance can cost hundreds to thousands of dollars more per year.
After Hurricane Helene, the number of homes considered high-risk has increased dramatically following record flooding events.
Florida has seen multiple insurance providers pull coverage from the state leaving homeowners with few affordable insurance options. Couple that with an uptick in severe storms and hurricane-related damages and insurance premiums have increased more than 100% since 2020, according to the Insurance Information Institute.
Many Florida residents end up with Citizens Property Insurance, a temporary insurance solution. This corporation is a state-run, nonprofit insurance carrier for those unable to find coverage from private insurance companies. Citizens Corp. constantly shops for private insurance for its policyholders. If it finds coverage within 20% of its own cost, you’ll no longer be eligible for its coverage, which can, once again, leave homeowners in a challenging position.
5. Competitive Housing Market
Florida remains one of the fastest-growing states despite its homeownership challenges. According to the latest data from the U.S. Census Bureau, Florida had a positive net migration of around 430,000 people in 2023. In 2022, that number was more double that, with roughly 1 million people moving to the state.
Many homebuyers coming from out of state are looking for a more affordable cost of living. According to data from the Florida Realtors, the median sale price for existing single-family homes in October 2024 was $415,000. That’s notably cheaper than high-cost states like California or New York, where the median price for the same month was $839,000 and $529,400 respectively.
These two states make up the highest portion of migration to Florida over the last few years and are big reasons prices in several Florida cities are still healthy. Many markets saw a decline after the recent hurricanes, and the market has begun to return to a more balanced market, but it can still be challenging to find the right home with existing inventory.
Especially if you’re on a budget.
“Hyperinflation has impacted communities all over Florida,” says Veronica Frost, who lives in Cooper City, a Miami-Fort Lauderdale suburb. “We bought our house in August of 2019 thinking it would be the perfect starter home. Since then, the real estate market has taken off and we’re feeling stuck.”
“We say all the time, we have no idea when we’ll be able to get into a bigger house. For now, we just wait and hope it comes down soon,” says Frost.
As a Florida native and new homeowner, I can attest these challenges are real and should be carefully considered. While living in Florida can be paradise, it’s not without issues. Make sure you’re comfortable with these realities and weigh the true costs and risks before moving there.
More from U.S. News
How Climate Change Could Impact Your Home Value
What to Do if You Lose Your Homeowners Insurance
What Homebuyers Need to Know About Climate Change
5 Harsh Realities of Homeownership in Florida originally appeared on usnews.com
Update 12/20/24: This story was published at an earlier date and has been updated with new information.
