Migration To Florida Slows As South Carolina Leads Growth

The 2024 U-Haul Growth Index report is out, and it reveals some interesting numbers. The company uses their cargo vehicle rental data to determine annually what states people are leaving, and where they are heading. While not all-encompassing, the report has been a fairly reliable indicator of overall migration trends in the continental United States.

Migration To Florida Slowed In 2024

For the first time since 2016, Florida has fallen out of the top three destinations nationwide for people seeking a new place to live. Until this year, Florida was surpassed only by Texas, which regularly traded places with Florida for the top destination for the past nine years. There was only one year in the period, 2020 – the year of COVID, when Florida fell to #3.

What’s Behind The Exodus?

So what happened in 2024? Florida fell to #4 on the list behind South Carolina, Texas, and North Carolina. While the numbers still show a continuing increase in Florida’s population, the trend of households moving to Florida has steadily declined over the past few years. In 2024, while 50.4% of households moving were inbound to Florida, 49.6% of movers were outbound, representing only .8% actual growth during 2024.

According to data gathered by Atlas Van Lines, some of the reasons given for the decline are:

1. Insurance Crisis: The state faces escalating home and auto insurance premiums. In 2023, average annual property insurance premiums surged 42% to $6,000, significantly higher than the national average of $1,700. This increase is partly due to the aftermath of natural disasters, such as Hurricane Ian in 2022, which resulted in nearly $21.4 billion in insurance losses. Additionally, Florida has the third-highest car insurance premium in the nation, averaging $2,917 annually, compared to the national average of $2,019. These rising costs strain residents’ finances, making it challenging for many to afford necessary coverage.
2. Increase in Natural Disasters: Florida’s vulnerability to hurricanes and tropical storms has intensified, with major hurricanes (Category 3 or higher) in the Atlantic Ocean doubling since 1980. The 2023 hurricane season alone saw three major storms and seven hurricanes, causing billions in damage and displacing thousands. The emotional and financial toll of these frequent natural disasters prompts residents to seek safer locales.
3. Housing Market and Property Taxes: A booming housing market has led to an approximate 80% rise in home prices over the last five years. Despite this surge, Florida’s average wage remains about 92% of the national average. The inflated home prices have also caused property taxes to soar, making homeownership increasingly unaffordable and forcing many to relocate to more affordable states.
4. Rapid Land Development and Changing Scenery: To accommodate the influx of new residents, rapid land development has transformed once serene areas into congested urban centers. This urbanization leads to increased traffic, loss of natural scenery, and a decline in quality of life, pushing some residents to seek environments reminiscent of Florida’s previous charm.
5. Population Congestion and Traffic: Significant population growth has resulted in severe congestion and traffic issues in major cities. Commuting times have increased, and infrastructure struggles to keep pace with growing demand. In cities like Miami and Orlando, the average commute time has risen by over 20% in the past five years, leading residents to consider relocating to areas with better infrastructure and less traffic.
6. Increasing Utilities and Temperatures: Utility bills have risen over 20% in the last 12 months, partly due to increasing temperatures and rising electric rates. Summers are hotter and longer, leading to higher electricity consumption as residents rely more on air conditioning. The financial burden of these rising costs, coupled with the discomfort of extreme heat, affects residents’ quality of life.
7. Rising Cost of Living: Essential living expenses, including groceries and housing, have surged, straining household budgets. Comparisons to neighboring states reveal that Florida’s cost of living has become increasingly burdensome, prompting residents to seek more affordable living conditions elsewhere.
8. Job Market Challenges: Certain sectors in Florida experience limited job growth, leading to employment challenges. The competition for jobs in major cities has intensified, making it particularly tough for newcomers to secure employment. Industries struggling or declining in the state further exacerbate job availability issues, leading many residents to seek opportunities in states with more robust job markets.
9. Tax Implications: Rising property values have led to increased property taxes, adding to homeowners’ financial burdens. Additionally, sales tax on everyday purchases contributes to the overall tax implications for residents. Comparisons to states with more favorable tax structures highlight the challenges Floridians face in managing their finances efficiently.
10. Social Considerations: Political polarization affects community relationships, leading to division among residents. Shifts in demographics alter local culture, impacting traditions and community engagement. The rise of remote work disrupts traditional community structures by reducing face-to-face interactions, prompting some to relocate to areas with more cohesive communities.
11. Quality of Life Concerns: The availability and quality of healthcare services vary across the state, affecting residents’ well-being. Maintaining a balanced work-life environment in urban areas poses challenges, contributing to stress and dissatisfaction among residents, leading some to seek locales offering a better quality of life.
12. Education System Issues: Criticisms surrounding public school funding and resource allocation are prevalent, affecting educational opportunities for students. Disparities in educational quality between urban and rural schools create inequalities, prompting families to move to states with more consistent and higher-quality education systems.
13. Impact of Climate Change: Rising sea levels threaten coastal properties and infrastructure, leading to erosion and flooding. Climate change also affects agriculture, with extreme weather events impacting crop yields and livestock. The long-term implications include decreased agricultural productivity and disruptions in ecosystems, motivating residents to relocate to areas less affected by climate-related challenges.
14. Natural Disaster Risks: Hurricanes pose a significant threat, with their frequency and intensity increasing due to climate change. Residents in coastal areas are particularly vulnerable, facing safety risks and potential property loss. The emotional and financial toll of living in a disaster-prone area leads many to consider relocating to safer regions.

Despite All, Florida Is Still Growing

Moving to florida is still a popular idea. Despite the overall slowdown, certain Florida markets continued to experience growth. Ocala, for instance, was recognized as the No. 1 growth city proper for the second time in three years, according to U-Haul’s data.

Other areas of Florida that are still growing according to the U-Haul report are:

• Kissimmee: Secured the No. 3 spot among growth cities.
• Clermont: Placed at No. 15 in the growth cities ranking.
• Port St. Lucie: Achieved the No. 18 position among growth cities.
• Panama City: Ranked at No. 23 in the growth cities list.

Additionally, Florida boasted seven of the top 25 growth metros in 2024:

• Lakeland: Ranked No. 4 among growth metros.
• Palm Bay: Secured the No. 8 spot.
• Jacksonville: Placed at No. 11.
• Tampa-St. Petersburg-Clearwater: Achieved the No. 12 position.
• North Port-Bradenton-Sarasota: Ranked at No. 15.
• Fort Myers: Secured the No. 16 spot.
• Daytona Beach: Placed at No. 23 among growth metros.