The Lakeland Ledger newspaper reports that for the first time since World War II, more people moved out of Florida than moved into the state from the domestic US for the twelve months from July 2007 to July 2008.
Population continued slow growth as foreign immigrants added 77,000 to the inbound figures during the time period.
The article talks about 9.5% unemployment in Florida and how the national housing slump has stopped folks up North from selling their homes so they could move to Florida.
But the article does not address – nor is the state addressing – what I believe to be more serious problems. In addition to the fall in home values in Florida and the high foreclosure rates, there are two other issues which I believe contribute to the population drain: home insurance costs and real property taxes.
Four major hurricanes hit Florida in 2004 (including 3 that hit my home area of Central Florida). Several major insurance companies were hurt, but that appears to be the result of inadequate re-insurance planning by the companies. In any case the insurance rates in Florida for homeowners has gone up and has become a burden for Florida residents.
Second, although Florida has no state income tax, the real property taxes which support the state and local governments and such services as education have increased. As usual the politicians at state and local levels have not been willing to give up any tax revenues. In fairness to the politicians – the voters want lower taxes but do not want to give up any services.
The economy will recover. Florida still offers a climate and lifestyle that many find attractive. The housing markets will recover. But the insurance and property tax issues will need to be solved, or we will not return to the previous growth rates.
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