According to financial advisors, many of their clients are discovering their relocation will not bring the tax-saving bonanza they anticipated. The transplants are facing unexpected expenses, including steep condo assessments, climate change risks, and insurance premiums.

One of the biggest surprises for buyers, particularly in popular South Florida, is property taxes, according to Henry Silva, Miami-based wealth management advisor at Apollon Wealth Management. Though they are becoming unaffordable around the country, property taxes rose 47.5% from 2019 to 2024 in Florida, with even people who have owned their homes for decades caught in the crosshairs. Republican Gov. Ron DeSantis has proposed eliminating the levies altogether, while the Florida Legislature is looking into other options.

And then there’s insurance. While the national average cost of home insurance is $2,329 per year for a $300,000 dwelling, according to Bankrate, it reaches $5,409 in Florida. Many of the most attractive locations in South Florida have flood zone assessments, meaning buyers are paying more for flood insurance. Some Florida owners are paying more for property taxes and insurance costs than their mortgage and interest payments. The state also has the highest average car insurance in the country.

And that’s when they can find policies. Due to climate change and increasingly costly hurricanes, insurance providers are pulling out of the most disaster-prone areas.

“Florida is the epicenter of the housing insurance crisis,” notes Redfin. “Premiums have soared as natural disasters have intensified and insurers have stopped doing business in the state.”

Soaring condo and HOA fees

This year, condo owners are also dealing with an expensive requirement stemming from the Surfside condo collapse in 2021 that killed 98 people. Condos more than 30 years old—many of which are located in South Florida—had to undergo the state’s structural integrity reserve study, and condo associations needed to set aside reserve funds for potential structural repairs and maintenance by the start of the year. Those costs are passed onto condo owners, who have reported owing tens of thousands of dollars unexpectedly.

And those are on top of monthly HOA fees, which have also becoming increasingly costly, particularly in Hurricane-prone parts of the state. An August 2024 Redfin report found the median monthly HOA fee increased 17.2% year over year in Tampa, compared to 5.7% nationally. Orlando and Fort Lauderdale increases weren’t far behind. Miami, meanwhile, has the highest median monthly HOA fees of any of the 43 metros Redfin analyzed. That said, some relief may be on the way from the Florida legislature.

Those exploding costs, plus higher mortgage interest rates and sky-high home prices, have resulted in a glut of condos on the market that are going unsold.

The assessment, in particular, has complicated matters for potential Florida transplants, says Silva. Many are not even aware of the laws. When they find the perfect beach-front property, they then must negotiate with the current owner over who will bear the cost, which can be in the six figures. It’s complicating the process and causing some to rethink a move—or at least, reframe it.

“I don’t want to make it seem like relocating to South Florida is not ideal. I’m here. I love it,” says Silva. “It’s just not tax free. It’s not a huge savings. The reason you’re relocating shouldn’t be because of the tax savings. It’s gotta be for other personal reasons.”