Category: Timely Opportunities
More and more people from New York, New England, the Midwest, and California are picking up stakes and moving to Florida. As more individuals begin relocating a business to Florida, new opportunities continue to emerge for professional services. Read on to learn what's behind people leaving New York and other areas in favor of Florida and why you, too, might wish to consider moving business operations or establishing a new business in Florida.
For years, Florida served as a destination for retirees. Many older adults became snowbirds, living in Florida during the winter and returning to their homes elsewhere when spring or summer arrived. Starting in the 21st century, many people began relocating to Florida permanently. You can see this trend reflected in the Florida population statistics. In 2000, the population of Florida was 16 million. By 2010, it was 18.8 million, and by 2020, it had grown to 21.7 million. By comparison, New York's population shrank from 19.7 to 19.4 million from 2014 to 2020, and California's population saw very little growth during that time frame.
The pandemic accelerated the trend. Migration to Florida 2020 stats show that the population grew by 200,000, and the migration to Florida 2021 data reveals the growth of an additional 300,000 people. In 2022, the population of Florida has grown to 22.2 million.
So why are people leaving New York and other areas for Florida? There are several reasons.
While California, New York, and many other states used partial shutdowns, vaccine requirements, and mask mandates to control the spread of COVID-19, Florida remained largely open for business throughout the pandemic. It imposed little to no restrictions on residents. Individuals wanting to return to normal moved from New York to Florida and from other areas of the country. Some of these moves may be temporary, but many experts believe that the Florida population numbers will only continue to rise even as the rest of the country begins to ease restrictions.
Environmental and social factors also make Florida an attractive place to live. The state offers warm temperatures year-round with minimal risk of snow or ice. In most of Florida, the beach is never more than a few hours away, and there are plenty of tourist attractions to enjoy. Many people find the Florida lifestyle to be appealing as well. The state is home to many luxury residential communities, but the attitude and culture tend to be more laid-back than in other areas.
For many people, moving to Florida means paying – lower income taxes. Florida doesn’t impose an individual income tax. This means that employers don't withhold a portion of wages to pay for state income taxes, and self-employed individuals don't have to worry about paying personal income taxes to the state. Hiring certified public accounting firms in Florida to do a tax analysis may reveal significant savings for individuals and businesses.
In addition to Florida's no income tax rule, the state enjoys a lower cost of living compared to New York or California. Many people find they can buy a larger or more centrally located home in Florida, and they spend less on groceries and other purchases. Plus, the warmer climate means fewer energy costs during the winter months.
Many employers that changed to working remotely have announced that they will never reopen their offices. As a result, employees of these companies may now be free to live wherever they choose. Individuals who find themselves in these circumstances can relocate to Florida to enjoy all that the state offers. Some companies allow employees who move to continue to make the same salaries. Since Florida doesn’t have a personal income tax and has a lower cost of living than many other states, people get an increase in disposable income just by moving.
As a consequence of the Florida migration, the state has seen a considerable increase in the demand for professional business services. The need for CPA firms has grown considerably, and other business service sectors are seeing growth, including the following sectors:
Relocating has also caused trickle-down effects, leading to employment opportunities for medical professionals, educators, and service workers. If the trends continue, many sectors of Florida's economy will likely expand in the years to come. Companies that relocate now can be positioned to grow as the migration continues.
If you’ve recently relocated your family or business to Florida and are looking for professional accounting services, contact Kerkering, Barberio & Co. at (941) 365-4617.