Platform: LinkedIn • Post #4
Thank you for reading this post, don't forget to subscribe!There’s a hidden $100,000 tax on every Florida home purchase.
It’s not in the closing costs. It’s not on the HUD statement. But it’s real — and it’s reshaping the entire market.
Here’s the math:
- Florida average homeowner insurance: ~$8,000/year
- National average: ~$1,850/year
- Annual difference: ~$6,200
At a 6% mortgage rate, $6,200/year in additional carrying costs is equivalent to approximately $100,000 in reduced borrowing capacity.
Translation: A buyer who could afford a $500,000 home in Georgia, Texas, or North Carolina can only afford ~$400,000 in South Florida — solely because of insurance.
This is why properties are sitting. This is why the 90-day inventory is growing. And this is why pricing to the 2022 market is a recipe for stagnation.
Insurance costs have risen 10-15% again in the latest reporting period, with Governor DeSantis proposing $600M+ in budget relief. But meaningful consumer-level impact hasn’t materialized yet.
For our detailed analysis of how insurance is reshaping every segment of the South Florida market, read “Stagnation in the Sun” — our comprehensive market report.
Hashtags: #FloridaInsurance #RealEstate #SouthFlorida #HousingAffordability #MiamiRealEstate #InsuranceCrisis #PropertyInsurance #RealEstateInvesting
Data from Storm Smart, Norada Real Estate, and FPAT.