Data from a Florida Atlantic University (FAU) survey published just this past November 4, 2025, confirms that 49.6% of Florida residents are considering moving due to the high cost of living. We present the main reasons, their implications for the economy, and potential solutions.
Nearly 50% of surveyed Floridians say they have considered the possibility of moving out of Florida because of the cost of living.
The study revealed that 90% of residents are at least somewhat concerned about inflation, and 80% about housing affordability.
The main drivers of this affordability crisis, according to all reports, are two key factors:
- Housing costs: Both home purchase prices and rents have skyrocketed.
- Insurance costs: Property insurance prices have become unsustainable for many, doubling or tripling in recent years.
Here’s an analysis of the implications for our local community in Port St. Lucie and potential government solutions.
📉 Implications for Port St. Lucie and the Local Economy
A “brain drain” or exodus of the working class would have serious and unique implications for a rapidly growing area like Port St. Lucie.
- Labor Force Shortage: This is the most immediate implication. Port St. Lucie relies heavily on the healthcare (hospitals), retail, and construction sectors. If nurses, teachers, construction workers, and service staff can’t afford to live here, those sectors collapse. This isn’t an elite “brain drain”; it’s a drain of the essential workforce.
- The “Dual Housing Market”: A divided market emerges. Long-term residents are “positively trapped” by the Homestead Exemption law, which limits their property tax increases to 3% annually. However, new buyers, young professionals, and renters face full market prices. This creates a generational and economic gap, where only long-time residents or the newly wealthy can afford to stay.
- Condo and Retiree Crisis: Our local area (PSL, Jensen Beach, Stuart) has a large retiree population living in condominiums. Due to the Surfside collapse, new laws require “milestone inspections” and engineering reviews. Combined with massive insurance hikes, this is causing Homeowners Association (HOA) fees to surge, forcing fixed-income retirees to sell.
- Growth Stagnation: Ironically, Port St. Lucie’s success could stall. PSL’s 2025 real estate data shows that while prices remain high and stable (around a $419,000 median), the number of sales has dropped nearly 18% compared to last year. Inventory is rising. This indicates we’ve hit an affordability ceiling: people want to buy, but simply can’t.
🏛️ How Can Governments Prevent This Exodus?
There’s no single solution, and it requires coordinated action at both the state (Tallahassee) and local (City of Port St. Lucie/St. Lucie County) levels.
1. State Government Solutions (Tallahassee)
The state controls the biggest levers, especially in insurance and taxes.
- Reform the Insurance Market (Further): While the legislature has passed reforms in recent years to limit litigation, the effects haven’t yet trickled down to consumer premiums. Continued action is needed to stabilize the market, attract more insurers back to Florida, and address the cost of reinsurance.
- Reform the “Live Local” Act: This 2023 law is the state’s main tool for affordable housing. It offers huge tax and zoning incentives to developers who build “workforce housing.” However, critics argue its income limits are too high and aren’t helping essential workers (like service staff) who need it most. The law needs to be adjusted to focus on truly affordable housing.
- Stop “Raiding” the Sadowski Fund: For decades, the state has “swept” (diverted) money from the affordable housing trust fund (Sadowski Act) to use in the general budget. The state government must commit to allocating 100% of those funds to housing.
- Property Tax Relief: Proposals are already being discussed, such as a $1,000 rebate for homeowners. However, this often doesn’t help renters, who see their rents rise anyway.
2. Local Government Solutions (City of Port St. Lucie / County)
Local governments have limited power over prices, but they control one crucial factor: zoning and development.
- The Local Tax Dilemma: It’s important to note that the Port St. Lucie City Council has lowered the tax rate (millage rate) for 10 consecutive years. The problem isn’t the tax rate; it’s the property value. When your home’s value doubles, your tax bill increases dramatically, even if the rate drops.
- Change Zoning: This is the city’s most powerful tool. To combat the crisis, the city must actively allow and encourage “missing middle housing.” This means easing regulations to permit more:
- Accessory Dwelling Units (ADUs): (Apartments over garages, “granny flats” in backyards).
- Duplexes and Townhouses: In neighborhoods currently zoned only for single-family homes.
- Balance Growth with Infrastructure: Many local residents rightly complain that rapid development has overburdened roads, public safety, and services. The city must ensure new developments pay their fair share (through impact fees) so existing residents don’t feel their quality of life declines while their costs rise.
- Public-Private Partnerships: The city can partner with large local employers (like hospitals) to develop workforce-exclusive housing, ensuring their employees can live in the community where they work.
In short, the exodus of residents is an existential threat to Florida’s economic model. To prevent it, the state must fix the insurance crisis, and local governments must radically reform zoning to allow the construction of housing the workforce can afford.
