Florida Faces Housing Crisis Amid Insurance and Affordability Woes

Florida is facing a housing crisis similar to California's, marked by soaring home prices and unsustainable insurance premiums. A Cotality report highlights how the state's median home prices have escalated dramatically, with Miami's median home price reaching $629,575. Homeowners now allocate a significant portion of their income to housing, exacerbating affordability issues. The influx of high-income residents has led to economic growth but deepened inequality, while the property insurance market in Florida is in turmoil, with major insurers exiting the state and many relying on state-backed coverage.

The rapid population increase, particularly in Tampa, is straining infrastructure, with commute times rising and aging water systems causing significant leaks. Insurance premiums have surged by 60% since 2019, and nearly a quarter of homeowners depend on Citizens Insurance. The potential damage from natural disasters, like hurricanes, remains a looming threat, as highlighted by the 2024 near miss from Hurricane Milton, which could have caused significant financial damage.