Why Are So Many People Moving to Florida?

There are many favorable reasons which make people move to Florida, ranging from the favorable tax environment, warm climate all year-round, and an overall more easygoing lifestyle. The state is in an economic boom in several sectors, from manufacturing and car exports to high-end jobs like finance, software development, and education. There is a noticeably large population of retirees and people over 60, who prefer to spend their golden years in the Sunshine State.

The trend for moving to Florida from NY and moving companies from New York to Florida provides an interesting two-way street dynamic where most of the new citizens are coming from New York, California, and Texas, but that’s also where people who are moving from Florida go. 

New York is by far the primary source of new residents,  as most new residents are moving to Florida from New York, with more than 70,000 New Yorkers choosing Florida as their new home. A lot of people are choosing  California, and Texas both have a similar distribution of new residents relocating to the Gulf Coast state.

The cost of living in Florida can be classified as the average of the national cost of living, with the Sunshine State providing a more affordable environment to residents moving from California to Florida and moving from New York to Florida. This, however, does not mean that Florida does not have bigger competition in the face of inland states like Texas, Tennessee, and Georgia.

The cost of living in Florida compared to that of New York or California is 20% to 30% cheaper, according to the Federal Bureau of Economic Analysis. Compared to the Sunbelt States, Florida is around 15% to 20%more expensive, mainly due to higher homeowners insurance, utilities, and grocery costs.

Florida is one of the states that has no personal income tax requirements for residents, which includes no personal state tax on income, retirement savings, no taxes on wages, social security, investment earnings, etc. This, however, does not absolve the taxpayers from their obligatory federal tax obligations. This is one of the main reasons Florida is such a popular retirement destination, because pensioners preserve 100% of their savings.

One big reason why more people are considering Florida as a viable choice for relocating is the weather and the overall lifestyle appeal that comes with it. SGT has reported on a snowbird trend from up north, from people living in colder, more frigid climates, and even a significant number of foreign nationals from Canada, who prefer to spend their winters in Florida. The same can be said about those who permanently make Florida their home state.

Speaking of retirees and permanent relocation, there is an interesting split between retirement migration and young professional residential relocation. With the advent of remote work and digital nomad lifestyle changes, more and more young people are choosing Florida over other states. The statistics show that there is a net loss of young people versus retirees ever since the Pandemic ended, since the main draw for young professionals is career growth. With the slowing of the economy, tech jobs, manufacturing, and the service industry have downsized significantly. Retirees choose Florida due to better tax haven opportunities, which have not changed.