Consider Florida For Retirement: Part 1

There are people that “hate” Florida, and there are those that “love” it. Surprisingly, the people who don’t have a strong opinion seem to be a smaller group.

In Part 2 of this article I'll get into more about the regions and which ones might appeal to different folks better than others, but here in Part 1 I would like to provide a “Florida Retirement 101" crash course.

My objective is to help you understand this very large and popular state, which is diverse in more ways than you might think. You still might not like the idea of Florida, but at least you will know more about it.


First, a few facts

The 2010 household population was 18,800,000, the 4th most populous in the U.S. Median age is 40.7, higher than national average. Some 21% of the population is 62 and over.

Part of Florida’s geographic diversity comes from its unusual shape – it is both tall and wide. So tall and wide that it takes over a day to drive from Pensacola to Key West. Its different regions tend to attract different kinds of people, offering another kind of diversity.

Florida is the 22nd largest state, has the longest coastline in the contiguous states, and the only state to have a coastline on the Atlantic and the Gulf of Mexico. It is a very flat state, which is one of the things that people tend not to like about it (Mount Dora, at 185' is one of its “loftiest” towns).

Florida’s median home value in early 2012 was $120,600 (Zillow), about 20% lower than the U.S. median ($145,000 – Zillow, or $163,500 – NAR). According to Zillow.com the priciest metro in the state for homes is Naples ($199,000) and the most inexpensive is Ocala ($84,200).

From a tax viewpoint Florida is very friendly to retirees. There is no state income tax. There used to be a tax on intangible assets (stocks, etc.), but that has been eliminated. Sales tax is 6%. Florida has a homestead law, Save Our Homes, that protects full-time residents from property taxes above the rate of inflation.

One of the few economic negatives about Florida is that in many areas near the coast, property insurance is very expensive. Many private insurers have pulled out of the market after several bad hurricane seasons, leaving the non-profit Citizens Insurance Co. as the insurer of last resort.

Weatherwise, it is a well-known fact that Florida is pretty warm in winter and hot in summer. Along the coasts you can count on very high humidity. In the interior it will be less so. Hurricanes are a problem everywhere in the state, but worse along the coasts. Winters in the north around Tallahassee and Jacksonville will have an occasional frost, but generally warm up enough in the day for any outdoor activity. As you move south winter temps get higher and higher. Key West is the only true frost-free city in the continental U.S. – yes, even Miami has seen a few snow flakes on the rarest of occasions.


The Diverse Regions

Florida is quite representative of the U.S. from an ethnic and political basis. It has every ethnicity and political stripe – in fact many of its residents, young and old, have moved here from somewhere else. As Florida votes in our Presidential elections, so usually does the rest of the country as a whole.


We'll break the state into 8 regions:

The Panhandle

Northeast Florida – Jacksonville to Daytona Beach

Mid Atlantic – the Space Coast

Central Florida

South Atlantic Coast

Middle Gulf – The Nature Coast

South Gulf Coast

The Keys


In the next post, Consider Florida For Retirement: Part 2, we'll get into some of the differences in the 8 different regions



Resources:
Directory of Florida retirement towns and active communities