The Big Reason Retirees Are Leaving Florida (And Heading To These U.S. States Instead)

Around 1910, people began moving to Florida to retire, largely because that was the cusp of when the middle class could afford to buy property in the state. By the 1920s and 1930s, retirement villages began to appear, which made spending your golden years surrounded by both sunshine and others in your generation doable. Over the ensuing decades, moving to a new place for retirement became closely associated with the Floridian lifestyle. However, that has begun to change.

One big reason is that the economics of living in the Sunshine State simply aren't as appealing anymore. Living in Florida cities can really cost you, with Florida residents paying the highest home insurance rates in the entire country in 2024 — with the expectation they will again in 2025. Data from Insurify found that the average annual home insurance premium, nationally, was $3,259 in 2024, while Florida was more than four times that amount at $14,140. To make matters worse, a 9% increase was projected for Florida in 2025, adding an extra $1,320 to annual premiums and raising average annual costs to $15,460. Not only are Florida rates higher than those in other states, but they are significantly higher. The next closest state, in second place, is Louisiana with 2024 figures of $10,964 and 2025 figures of $13,937, with Oklahoma in third place at $7,762 in 2024 and $8,369 in 2025. 

Looking at National Centers for Environmental Information data, Florida has experienced 94 separate weather-related events (drought, flooding, freezing, severe storms, wildfires, winter storms, and tropical cyclones) with more than $1 billion, apiece, in damage between 1980 and 2024. Tropic cyclones clearly top the list and account for 93.5% of total costs. All told, weather-related events have wreaked between $300 and $450 billion in havoc during this time frame, with 38.7% of the costs attributed to events occurring just from 2022 to 2024 — proving that annual damage is clearly accelerating.

As far as the human impact, according to a 2024 Redfin-sponsored Qualtrics survey, a whopping 70.3% of people owning homes in Florida have experienced increasing rates, had their home insurance coverage dropped, or otherwise had home insurance-related challenges. Even worse, 12% of Floridians lost their coverage altogether after filing an insurance claim because so many companies no longer want to insure flood prone areas. 

Redfin's survey also found that about one in three people have relocated to coverage areas, or plan to do so, after losing their previous insurance coverage. Meanwhile, 73% of Florida real estate agents have similar noticed a boost in problems related to home insurance claims and the lack of coverage. Complicating matters is how insurance companies have been negatively impacted, with the Florida Insurance Guarantee Association listing 14 insurance providers that have become insolvent since 2020.

PODs Moving Trends Report from 2025 showed that the push of people moving to Florida is lessening. From 2021 to 2023, Florida had six or more cities in the top 10 moved-to cities, whereas in 2024, only two Florida cities made the list — while another two were the most commonly moved-out-of cities. When people leave Florida, according to PODS, they tend to move to the Midwest, Colorado, New Mexico, Utah, or the Northeast.

In the Midwest, Cleveland Heights can be especially affordable for retirees, plus USA Today 10BEST ranked nearby Cleveland as having the nation's fourth best arts district in 2025. The Cleveland area also benefits from lower insurance costs. Insurify notes that Ohio's average 2024 home insurance cost was $1,851 with 2025 figures estimated around $2,006. According to data company Payscale, the cost of living in Cleveland is 8% lower than the national average, with housing prices 18% below average. Not to mentions utilities are 14% below average, healthcare 4% below average, transportation 3% below average, and food pricing coming in average. 

As another Midwest option, retirees can benefit from living in the college town of Ann Arbor, Michigan. One key reason is that U.S. News & World Report ranked the University of Michigan in Ann Arbor as the best hospital in the state, with 11 national rankings in health specialties. Plus, average Michigan home insurance costs came in at $3,038 in 2024 and $3,290 in 2025.