A recent Fox Business article and feature on Florida is helping to explain why property values are increasing in Florida and will likely continue to do so for years to come. The article tells us that people are fleeing high-tax states, such as New York and California, to grab their sunscreen to head off to the Sunshine State to live, play, and stay.
With recent changes to the U.S. tax code there has been an increasing number of people who are wanting to take their cash and their earning potential to lower-tax states, like Florida. According to a new study, Florida is the largest beneficiary from relocations out of all 50 states, and it’s number one by a lot.
A total of 20 states combined are to see a net influx of around $37.1 billion in adjusted gross income. Florida by itself makes up nearly 50% of that total amount.
Thanks to recent changes to the U.S. Tax code, a $10,000 cap on state and local tax deductions has caused the exodus from states like New York, Connecticut, and California to states with low taxes like Florida.
Florida is unique and attracts high net worth individuals already… add a decrease in tax burden by migrating to Florida and you can see why the state continues to grow, all while property values continue to increase. It is a simple function of economics, common sense, and supply and demand.
DFY clients have averaged between 8% and 10% equity increases in their Florida properties over the last 3.5 years. According to high level data sets, the appreciation will continue at the same clip for another 3 or 4 years at a minimum.
Make sure you visit the properties section of dfy-realestate.com and take a look at the amazing Florida properties you could be adding to your portfolio this year.
To read the full Fox Business article: