Reena Agrawal

Research Economist

image shows street flooding near river with businesses closed

Is Florida’s Housing Boom Doomed? The Threat of Climate Change

Florida’s pristine beaches and warm climate are increasingly overshadowed by the devastating impacts of climate change. Hurricanes, flooding, and rising insurance costs are forcing homeowners to sell their properties and relocate. The housing market, once booming, faces an uncertain future as the state’s appeal is weighed against the growing threat of natural disasters.

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Surging insurance premiums and HOA fees slow down Florida’s Housing Market

Average yearly home insurance premiums in Florida surged to over $4,231 in 2022 from $2,165 in 2020, according to data from the Insurance Information Institute (Triple-I). Furthermore, they climbed by an additional 42% in 2023, solidifying Florida’s position as the state with the highest homeowner insurance premiums. Forecasts suggest double-digit increases for 2024.

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