Why Florida Is a Popular Relocation Spot for California Natives
With its famous beaches, A-list glamor, and breathtaking landscapes, California has always been a dream location for newcomers and California natives alike. But could change be on the horizon?
With Florida emerging as a rival, more and more California residents are making the move east to the Sunshine State. So, why are Californians heading east, and is Florida the real deal?
What Do the Figures Say?Deciding to change from the West Coast to the East Coast is a big deal. So, how many people are actually doing it? It’s tricky to pinpoint exactly how many people have moved to Florida from California, but there are certainly enough statistics to suggest that it’s becoming a trend:
These figures seem to show a rise in the number of individuals making the move from California to Florida. Taking into account the reasons that individuals and families are moving, it’s a trend that may well continue.
Why Is Florida So Appealing to California Natives?There can be a huge number of reasons why individuals, families, and businesses change state, and each will tell a different story. However, there are several compelling reasons why some may wish to abandon the Golden State in favor of Florida:
1. Cost of Living
While real estate in cities like Miami is comparable to California in terms of price, the cost of living tends to be more affordable in Florida overall. According to MIT’s living wage calculations, $36,848 is needed for a single person without children to get by in Florida, while $44,175 would be needed by the same person in California.
What’s more, the jobs market is booming in Florida, meaning there are plenty of career opportunities for workers in a wide range of sectors. With (generally) lower housing costs, a lower cost of living, and a thriving jobs market, making a move to Florida is a no-brainer for a growing number of California natives.
2. Lower Housing Costs
Housing costs are of course very relative to the area you pick. However, outside the top end of the Florida housing market—Miami, Orlando, and Tampa—Florida residents tend to get more bang for their buck than Californians.
The following graph shows the stark difference in median sale prices between California and Florida. On average, Californians will need close to $800,000 to purchase a property in California, while residents in Florida will need only around half this amount.
With Florida emerging as a rival, more and more California residents are making the move east to the Sunshine State. So, why are Californians heading east, and is Florida the real deal?
What Do the Figures Say?Deciding to change from the West Coast to the East Coast is a big deal. So, how many people are actually doing it? It’s tricky to pinpoint exactly how many people have moved to Florida from California, but there are certainly enough statistics to suggest that it’s becoming a trend:
- According to the latest available figures from the IRS from 2020-21, 40,730 individuals made the move from California to Florida. That’s nearly 20% higher than the figures for 2019-2020.
- The Business Development Board of Palm Beach County reports that 28,957 individuals swapped their California driver’s license for a Florida license in 2022. This is 57% higher than the average for the previous five years.
- Official census figures revealed Florida to be the fastest-growing state in the country in 2022, with a population increase of 1.9%. This equates to an influx of 318,855 new residents. Though not all of these come from California, as a means of comparison, California lost 343,230 residents in 2022, indicating a clear trend away from California and toward Florida.
These figures seem to show a rise in the number of individuals making the move from California to Florida. Taking into account the reasons that individuals and families are moving, it’s a trend that may well continue.
Why Is Florida So Appealing to California Natives?There can be a huge number of reasons why individuals, families, and businesses change state, and each will tell a different story. However, there are several compelling reasons why some may wish to abandon the Golden State in favor of Florida:
1. Cost of Living
While real estate in cities like Miami is comparable to California in terms of price, the cost of living tends to be more affordable in Florida overall. According to MIT’s living wage calculations, $36,848 is needed for a single person without children to get by in Florida, while $44,175 would be needed by the same person in California.
What’s more, the jobs market is booming in Florida, meaning there are plenty of career opportunities for workers in a wide range of sectors. With (generally) lower housing costs, a lower cost of living, and a thriving jobs market, making a move to Florida is a no-brainer for a growing number of California natives.
2. Lower Housing Costs
Housing costs are of course very relative to the area you pick. However, outside the top end of the Florida housing market—Miami, Orlando, and Tampa—Florida residents tend to get more bang for their buck than Californians.
The following graph shows the stark difference in median sale prices between California and Florida. On average, Californians will need close to $800,000 to purchase a property in California, while residents in Florida will need only around half this amount.
Source: This graph is compiled with data from Redfin, a national real estate brokerage.
The rise in remote work may go some way to explaining why some workers are making an interstate move. With the possibility of finding cheaper housing while enjoying a California salary, moving to Florida makes sense for some remote workers.
1. Favorable Tax LawsThere are several compelling fiscal reasons to choose Florida over California. While California is notorious for its high tax burden, Florida takes a different approach. The most notable difference is the lack of state income tax, meaning Florida residents only pay federal taxes.
While the difference in income tax is stark, the table shows that Florida residents don’t suffer in other categories. Indeed, Californians pay significantly more in income tax, more in sales tax, and only a very small percentage less in property tax
The rise in remote work may go some way to explaining why some workers are making an interstate move. With the possibility of finding cheaper housing while enjoying a California salary, moving to Florida makes sense for some remote workers.
1. Favorable Tax LawsThere are several compelling fiscal reasons to choose Florida over California. While California is notorious for its high tax burden, Florida takes a different approach. The most notable difference is the lack of state income tax, meaning Florida residents only pay federal taxes.
While the difference in income tax is stark, the table shows that Florida residents don’t suffer in other categories. Indeed, Californians pay significantly more in income tax, more in sales tax, and only a very small percentage less in property tax
“Kevin DeCicco from Florida CPA firm Alpine Mar explains:
Not only is there no state income tax at an individual level in Florida, the Corporate tax rate is also significantly lower in Florida than it is in California (5.5% vs 8.4%). As for S-Corporations, their story is no different, although these entities are considered flow-through entities, California still imposes a tax of 1.5% on all net income stemming from an S-Corporation, while Florida does not impose income tax on S-Corporations.”
For many people, therefore, moving to Florida can make a significant difference to their finances.
1. A Booming Job Market
Florida’s job market extends far beyond tourism, with large healthcare, agriculture, and tech industries offering a large number of opportunities. The pay rate in some sectors may be lower, but combined with no state income tax and a lower cost of living, many residents in Florida feel the benefit at the end of the month.
With an extremely low unemployment rate—only 2.8% in September 2023—Florida could be a great choice for people looking for employment in a state with a thriving economy. Indeed, between February 2022 and 2023, Florida’s labor force grew by 2.3%. To put that into perspective, the national figure was 1.5% in the same period.
Florida may be particularly appealing for workers in certain industries that were highlighted by the Florida Economic Development Council as being especially strong in the state:
This data reveals that Florida’s job market is wide-ranging, and offers many high-quality and high-earning as well as seasonal job opportunities.
Florida Offers a Little Bit of Everything for EveryoneWhether you’re a worker, business owner, head of a family, or a retiree, Florida offers something for everyone. Though the favorable tax laws are a big draw for many wishing to look after their finances, it’s not the only reason to make your home in Florida.
For people looking for an alternative to California, Florida is the obvious choice. With its incredible climate, culture, nature, and beaches, Florida offers a more affordable alternative to the Golden State with largely comparable benefits.
Not only is there no state income tax at an individual level in Florida, the Corporate tax rate is also significantly lower in Florida than it is in California (5.5% vs 8.4%). As for S-Corporations, their story is no different, although these entities are considered flow-through entities, California still imposes a tax of 1.5% on all net income stemming from an S-Corporation, while Florida does not impose income tax on S-Corporations.”
For many people, therefore, moving to Florida can make a significant difference to their finances.
1. A Booming Job Market
Florida’s job market extends far beyond tourism, with large healthcare, agriculture, and tech industries offering a large number of opportunities. The pay rate in some sectors may be lower, but combined with no state income tax and a lower cost of living, many residents in Florida feel the benefit at the end of the month.
With an extremely low unemployment rate—only 2.8% in September 2023—Florida could be a great choice for people looking for employment in a state with a thriving economy. Indeed, between February 2022 and 2023, Florida’s labor force grew by 2.3%. To put that into perspective, the national figure was 1.5% in the same period.
Florida may be particularly appealing for workers in certain industries that were highlighted by the Florida Economic Development Council as being especially strong in the state:
- Aerospace and aviation. There are currently more than 2,000 air and space flight-related companies in Florida.
- Life sciences. California has historically been very strong in this sector. However, Florida is currently ranked number 1 in innovation in the life sciences sector.
- Manufacturing. There are more than 18,200 manufacturing companies in Florida.
- Security. Florida is strong in many aspects of security including military and cybersecurity.
- Information technology. Florida has a thriving digital media sector.
This data reveals that Florida’s job market is wide-ranging, and offers many high-quality and high-earning as well as seasonal job opportunities.
Florida Offers a Little Bit of Everything for EveryoneWhether you’re a worker, business owner, head of a family, or a retiree, Florida offers something for everyone. Though the favorable tax laws are a big draw for many wishing to look after their finances, it’s not the only reason to make your home in Florida.
For people looking for an alternative to California, Florida is the obvious choice. With its incredible climate, culture, nature, and beaches, Florida offers a more affordable alternative to the Golden State with largely comparable benefits.
