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Edmond Thorne
Florida's Aging Homeowners: House-Rich, But Cash-Strapped, and Facing a Crisis
11 days ago
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Florida's Aging Homeowners Face Financial Crisis: Soaring HOA Fees, Insurance Costs, and Living Expenses Threaten to Price Out Long-Time Residents
Fort Lauderdale, FL. - Florida, the Sunshine State, known as America's retirement home, has a significant population of older homeowners. However, a growing number of these residents are finding themselves in a precarious situation. Despite owning valuable properties, they are increasingly cash-strapped due to rising costs of living, including high Homeowners Association (HOA) fees, skyrocketing insurance costs, expensive medical care, and escalating food prices. This financial strain forces many to consider selling their homes and leaving Florida for more affordable living areas.
The Burden of HOA Fees Florida has the second-highest number of homeowner associations in the country. The average homeowner association member pays anywhere from $100 to $500 in HOA fees each month. New laws introduced in 2024 have added to the financial burden. These laws require older condo buildings to perform inspections, address critical issues, and build up reserve funds for future repairs. The cost of these new obligations is often passed on to the individual unit owners, leading to a significant increase in HOA fees.
Skyrocketing Insurance Costs Florida's insurance industry has been struggling in recent years, with carriers dropping policyholders. The average Florida homeowner pays nearly $6,000, more than triple the U.S. average of $1,700 annually. The increase in insurance rates is due to a combination of factors, including the frequency of severe hurricanes and the insolvency of some insurance companies.
High Medical Care Costs The cost of medical care in Florida is another significant concern for older homeowners. The average cost of health insurance in Florida is approximately $489 per person, and the average cost of healthcare per Florida resident is $11,526. These costs can be a significant burden, especially for retirees on fixed incomes. A recent report found that the average cost of healthcare for a 65-year-old in Florida is over $15,000 per year, a staggering burden for those living on fixed incomes.
Rising Food Prices Food prices in Florida have also been on the rise. From March 2020 through March 2024, the cost of groceries rose by 24.7%. In Florida, a family of four can expect to spend an average of $10,385 on food in 2022, which is significantly higher than the national average. Florida has one of the most expensive grocery chains, Publix, which is basically a monopoly in the state, giving shoppers very little choice for big-box grocery shopping.
Looking for More Affordable Living Areas Due to these financial pressures, many older homeowners in Florida are considering selling their homes and moving to more affordable areas. Cities such as Bartow, Dade City, Homosassa Springs, Jacksonville, and Gainesville in Florida and other states offer a blend of small-town charm, natural beauty, and access to big-city amenities, making them attractive alternatives. Many are leaving the state altogether, not only because of the costs but also because of politics.
Statistics:
1 in 5 older homeowners in Florida are struggling to afford HOA fees, insurance costs, and medical care (Source: AARP)
The average HOA fee in Florida has increased by 22% in the past five years (Source: Community Associations Institute)
Florida's insurance market has seen a 30% decline in insurer participation since 2017 (Source: Florida Office of Insurance Regulation)
The average cost of healthcare for a 65-year-old in Florida is over $15,000 per year (Source: Kaiser Family Foundation)
Florida's grocery prices are among the highest in the country, with the cost of staples increasing by as much as 20% in the past year (Source: Bureau of Labor Statistics)
Going Forward As the crisis deepens, lawmakers and advocacy groups are scrambling to respond. Some call for reforms to the state's insurance market, while others push for increased funding for programs that help older adults afford healthcare and housing.
But for many, it may already be too late. As the Sunshine State continues to shine brightly for new residents and tourists, its older homeowners are being left in the shadows, forced to choose between the homes they love and the financial security they need.
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