With rising mortgage rates and home prices looking down on homeowners in 2023, Sun Belt residents are expressing gratitude for making the historic exodus when they did.
“The people are nice, you can’t beat the weather and climate here, and business is open,” former Colorado business owner Gary Rademacher told FOX Business’s Ashley Webster from Clearwater, Florida, on ” Mornings with Maria”. Tuesday.
A growing number of Americans migrated from predominantly blue, high-tax states like California and New York to lower-tax red states like Florida and Texas by 2022, according to a Bank of America analyst note based on findings from the Office of the US Census data and rates from U-Haul.
The South, which has states with some of the lowest individual income taxes in the country, was the fastest growing region. Its population increased much faster than the national average, jumping about 1.1%, or about 1.4 million people last year, a phenomenon described as the “Sunbelt migration.” The region also benefited from some 870,000 Americans leaving other parts of the country for warmer climates and lower taxes.
THE FLORIDA REAL ESTATE BOMB COULD DESTROY MANY PORTFOLIOS
By states, Texas, Florida, North Carolina, Georgia, Arizona, South Carolina and Tennessee led the growth in migration, according to the analyst’s note led by Rafe Jadrosich. In total, Florida saw its population grow by 319,000, while Texas saw an increase of 231,000.
“I originally came to Clearwater about five years ago with a business, [was] a partner at that, fell in love with the area. But my other businesses are in Denver, Colorado, in downtown Denver, and they never recovered from the pandemic. It has really become a not very good situation,” Rademacher explained.
“I have healthcare providers fly in every month from across the country for training in Denver, and they’ve literally asked me, please don’t have him here anymore,” he continued. “It is awful.”
Jonathan Vazquez, who is a K-9 officer and vice president of the Sun Coast Police Benevolent Association, works with many other officers who have moved to Florida from the Northeast.
According to Vázquez, the number of law enforcement officers conducting the exodus is “absolutely massive,” “with House representatives like Tom Leek and our local senator here, Ed Hooper, pushing laws and bills so that police officers become part of the hero program.” , where officers from out of state can get $5,000 for transferring to come here.”
“The last two years in a row, the governor has given us a $1,000 bonus for the local police officers that have been here,” Vázquez said. “It’s great to have a state that supports US law enforcement, that’s the first thing they say.”
Even though future Federal Reserve action will affect the “fate” of homebuyers this year, real estate experts and FOX Business Prime hosts Katrina Campins and Cheryl Casone also argued Tuesday on “Mornings with Maria” that Florida could experience additional growth as residential supply increases. market.
“Affordability is the key issue here,” Campins said. “The median mortgage rate is slated to be $2,430 in 2023, and that’s a 28% increase from last year and nearly double what we saw in 2021. I think the silver lining is there’s more inventory in the market, 33.5% to be exact, which has given buyers bargaining power and more concessions from sellers.”
The “Mansion Global” host also predicted the growth of the rental market and that Florida “will continue to outperform the entire nation.”
“What I’m seeing in Florida is, yes, there are fewer sales, but there’s more growth than anywhere else in the nation,” Campins added. “You also have states like Texas and Tennessee. We continue to see that migration, and especially in Florida.”
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But Casone had a softer perspective on the Sun Belt migration boom.
“Katrina can talk to that because she’s in the Florida market,” the “American Dream Home” host quipped. “I think the thinking is, as we look towards the summer of 2023, you might see a little bit of return migration, which means you might start to see people actually leave Florida, leave places like Arizona and Texas, and come back. to where they originally came from before COVID. That’s the conversation. We’ll see if it materializes.”
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FOX Business’s Megan Henney contributed to this report.