Florida Retirement Buzz

A recent study by the University of Florida indicates that the state’s population growth has slowed to its lowest level in 30 years.

According to economist and Professor Stan Smith, the lower rate of growth is primarily caused by people leaving South Florida areas like Miami-Dade due to the high cost of living.

But is this Florida population trend good or bad?

It depends. As usual, the headlines blare out catchy phrases to trap the reader into wasting his/her time reading newspaper articles or population studies of this nature. It’s really not news that when a (housing) boom goes bust, a large number of jobs in that industry will disappear.

Such is the case today with the Florida housing industry.

As Economics 101 teaches, the “mobility of labor” is a basic tenet for the efficient functioning of the capitalist system. When jobs disappear or cost of living increases, workers migrate to where the jobs are… it’s simple.

That is happening in Florida today, leading to a slower rate of population growth. The exodus of labor and the concomitant surplus of available housing units provide an excellent opportunity for individuals looking to retire to Florida.

A home in popular Sarasota county that the writer is personally aware of was purchased for $345,000 in December of 2006. Today (4/2008), it is assessed for $240,000.

Assessments in Florida are mandated to be updated to market values on the first of every year. The writer has also witnessed a stretch of road (1.5 miles) in a development that had eighteen houses (out of about 75) with “for sale” signs on them in March, 2008.

The scale of the revaluations occurring in Florida is breathtaking.

It has been stressed in several places in The Florida Retirement Book that new retirees placing bids for Florida properties currently not be swayed by any advice (from realtors) against “low balling” their offers.

Combined with the decrease in the value of the dollar, the purchase of Florida retirement real estate has become extremely attractive to Europeans and Canadians.

There are also articles appearing recently in various publications that describe the outward migration of retirees from Florida to states like the Carolinas.

One thing that the real estate bust does not change is Florida’s world renowned amenities, like the weather, beaches, outdoor activities like golfing, health related support systems, and venues for the arts.

If you might be tempted by these more northern venues for retirement, check them out, say in February, and compare!!