Florida has long been considered the best place to head when you retire. Part of that reason has to do with the year-round sunshine, but there’s an even more important reason why those on a fixed income typically head to the Sunshine State in retirement: Cost.
Typically, Florida has been known for its low cost of living and favorable tax laws, making it a haven for those who are trying to get by on less. But according to new data shared by Fox News Business, living in certain Florida cities can actually cost more than living in the notoriously pricey New York City.
The cost of living in cities like Miami, Palm Beach, and Fort Lauderdale now cost roughly five percent more than NYC and its surrounding suburbs, according to Bloomberg News.
And it’s not just expensive real estate driving the numbers, it sounds like consumer prices are also to blame, since they’ve risen 36 percent since 2019. But critics say the news isn’t all bad, and that there’s a good reason why this part of the Sunshine State is now so expensive.
The Gold Coast Has Become More Expensive Over the Years
@mattynightingaleMiami just became more expensive than New York. This is good news for investors♬ original sound – Matty Nightingale
In an area known affectionately as the Gold Coast, high costs shouldn’t exactly come as a surprise. But the new reporting from Fox News Business does highlight one of the many affordability issues happening in Florida, addressing why Miami and other neighboring regions have become so expensive.
According to the publication, home values have increased by 79 percent since 2020, with the average homeowners insurance premium coming in at around $8,292. The combination of these two figures is what is driving up costs in the Gold Coast.
Housing isn’t the only issue, though; even dining out can cost you more in Florida. Fox News Business says that the average restaurant bill in Miami will run you around $94 per person, while New Yorkers can grab a bite to eat for an average of $79 per person.
There’s a Reason People Move to Miami
A growing cost of living doesn’t sound good on paper, but one real estate pro shared a video on TikTok sharing why homeowners and investors should be happy to hear this news.
TikToker @mattynightingale says that increased prices are the result of increased demand, which means that the property people already own is worth a pretty penny. Meanwhile, Zillow points out that there’s a reason why people are willing to pay a premium to visit and live in Miami: The culture.
Miami is full of entertainment options and cultural institutions, while also offering up plenty of natural beauty to boot. Add into the equation the fact that many businesses are starting to relocate to the region to take advantage of those favorable tax laws we mentioned, and it’s no wonder why people are so willing to pay whatever it costs to call the Gold Coast home.