(NewsNation) — For years, the greater Tampa area was considered among the most appealing places to relocate to not only in Florida but in the entire United States. But in 2024, the Sunshine State has seen its housing market cool dramatically.
The housing shift took place even before Helene ravaged Florida last week.
Among the concerns of Florida homeowners is the issue of rising home insurance costs. Since the deadly storm made landfall last week many residents say they are ready to move out, according to a Wall Street Journal report.
Helene dropped more than 6 feet of storm surge on the Tampa metropolitan area – which includes St. Petersburg. Redfin identified that area as the fifth most popular relocation spot in the U.S. last year.
Citing data from Parci Labs, the metropolitan Tampa area saw a 58% increase in supply and a 10% decrease in demand. The firm reported that about half the homes listed for sale in the region dropped in price as of early September, the Wall Street Journal reported.
It’s the third highest rate of price drops in all metropolitan U.S. areas.
The softening housing market comes as the average annual home insurance premium remains the highest in the country. A survey conducted by Redfin and Zillow showed this year that 11.9% of Florida residents said they plan to move in the next year because of rising insurance costs.
The amount of people considering leaving the state is nearly double the national average of 6.2%. Meanwhile, the Redfin report indicated that 27.7% of respondents in Florida said they are concerned that their home insurer may stop offering them coverage on their homes.
According to data, the annual home insurance premium in Florida was $10,996 in 2023.
“Tampa was already heading in this direction before the hurricane hit,” Jason Lewris, co-founder of Parcl Labs, told the newspaper. “This hurricane may compound the market dynamics that have been occurring there over the last few months.”