Florida has become the region with the highest inflation rate in the United States, mostly due to the current situation regarding housing in the state. The Miami-Fort Lauderdale-West Palm Beach has the worst inflation level compared to other metropolitan areas. This territory has around 2.5 million residents, and it has had an inflation rate of 9% since April last year. In a similar way, The Tampa-St. Petersburg-Clearwater metropolitan obtained the nation’s third-highest rate, with 7.3% in the year ending in May.
In comparison, other metropolitan areas have obtained some positive results. For example, Minneapolis had an inflation rate of 1.8% in May, which is the lowest level out of the 23 metropolitan areas, in concordance with the Bureau of Labor Statistics. Similarly, Hawaii’s urban area scored the second-lowest inflation rate, at 2%. According to Senior Economist at real-estate listings company Zillow, Nicole Bachaud:
“Florida has seen a major influx of in-migration over the course of the pandemic, drawing remote workers and retirees by offering sun-drenched coastal living at a serious discount compared to California.”
Analysts have stated that the reasons for this rising situation in the Sunshine State have to do with inmigration. Reportedly, Florida’s population grew bigger than any of the other states from July 2021 to July 2022 as a result of domestic migration. In addition, Census Bureau’s statistics say that Florida had the fastest population growth in that period of time, which is only comparable to the one it had since 1957. Apparently, people migrate from the Northeast and the West Coast, which have high-crime rates and invasive governments. About the issue, Economist at the University of Florida, Amanda Phalin expressed:
“A lot of people are still coming to Florida because the economy is really strong, and many like the fact that we don’t have an income tax like in New York, for example. And in places like Miami, we’re seeing a lot of real estate demand from non-Floridians or non-American investors. Generally wealthy folks who want to have a nice home here.’