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Current Sarasota Real Estate News

Florida Faces Competition for Retirees

Posted July 29, 2007

     Most of the time it starts at first with vacations. Then vacations stretch into winter months, maybe just two months at first and then eventually 4 or 5 months. Lured by Florida's pleasant climate and warm weather, "snowbirds" purchase Sarasota area real estate as a second home and spend years traveling between their homes in colder parts of the U.S. and Canada and Sarasota Florida. Finally, tired of supporting and maintaining two homes, these retirees decide to live full time in their Florida home or condo.

     In addition to the warmer weather, the cost of living in Florida has, in the past, been a bargain compared to areas such as New York and California. And for the more affluent, it has been an important consideration that Florida has no state income tax.

     A recent University of Florida study indicated that almost one in four people ages 55 and older who moved full time to the Sunshine State between 2000 and 2003 started out as snowbirds. In addition, 30% of current snowbirds said it is either "likely" or "very likely" that they would move to Florida year-round at some point as they age. The study found that Florida led the country in the number of snowbirds, with about 818,000 winter residents in 2005, followed by Texas and Arizona. Snowbirds contribute billions of dollars to the economy. That has been the "good news" side of this story.

     Now, the "bad news." With spiraling property taxes, property assessments, and insurance availability and cost and the threat of hurricanes, Florida is facing more competition from states that are becoming more attractive to seniors.  Georgia, Tennessee, North and South Carolina, Texas, Nevada and Arizona, all of which have lower proerty tax and insurance rates, are becoming more popular as retirement sites according to a recent Brookings Institute study.

     A recent blog entry sums up the problem for Florida and Florida real estate values as former residents start moving to states like Tennesseee and the Carolinas keeping their desire for less severe weather but escaping some of the downsides they see in Florida. These seniors are sometimes referred to as "half-backs" because they're moving half-way back to their original home states: The blog entry: "We lived in Pinellas County Florida for 23 years. But after major increases in traffic, taxes, hurricanes, crime, etc...we chose to move to North Georgia. The mountains are beautiful, people are more friendly and we get to enjoy the four seasons. I am originally from Rockand County, New York."

      For a permanent home, vacation getaway or an investment property, the Sarasota real estate market, with its recent price correction, is hard to beat.  I invite you to request my free Sarasota Real Estate Package or call me directly at (941) 308-6752 or toll-free at my Office at (800) 966-2334.