Weak loonie, ballooning insurance costs drive Canadian snowbirds to sell Florida homes

Cesidia Cedrone has been enjoying the warm weather at her Florida condo every winter since 2011. “Sunshine all the time. Don’t have to shovel snow. The beach, the sand…” the Ontarian said from her second home in Hallandale Beach, halfway between Miami and Fort Lauderdale. However, last week, her retirement dream came to an end as Cedrone and her husband decided to sell their home.

“The Canadian dollar is not at par with the U.S. dollar,” she explained. “That was the main reason behind our decision to sell.” In addition to the weak exchange rate, higher insurance rates, taxes, and condo fees also played a role in their decision. “For us Canadians, it’s a double whammy,” Cedrone said, referring to the challenges of maintaining a property in Florida.

Many other snowbirds are facing similar challenges and are rushing to sell their homes in Florida. Canadians accounted for nearly one-quarter of foreign sellers in Florida between April 2023 and March 2024, compared to 11 per cent in the previous year. Real estate broker Alexandra DuPont, who primarily works with Quebecers in southeast Florida, has seen a significant increase in listings.

The market in southwest Florida is flooded with properties, with many homes remaining unsold for extended periods. Sylvain DuPont, Alexandra’s father and real estate partner, expressed concern about the market’s stability. He noted that most of their clients are Ontarians and Quebecers and that people are starting to panic.

While some attribute the exodus of Canadian homeowners to political factors, such as Donald Trump’s policies, others believe it is primarily driven by economic considerations. The higher cost of living, the risk of damage from natural disasters, and a growing preference for diverse travel destinations each winter are contributing to the flight from Florida.

The decline of the Canadian dollar, coupled with skyrocketing insurance premiums and property taxes, has made it increasingly expensive for Canadians to maintain homes in Florida. Stricter building codes requiring costly upgrades have also added to the financial burden for homeowners.

Some retirees prefer to travel rather than settle in one location. Younger couples and individuals are opting to explore different destinations each winter rather than purchasing a property in Florida. Recent hurricanes and the high cost of home insurance in the state have raised concerns about safety and the long-term viability of owning property in storm-prone regions.

As a result, some Canadians are choosing to sell their properties in Florida and explore other options. Laurie Lavine, an Arizona-based real estate agent, has observed a surge in listings from Canadians in his area due to the lower cost of living. With expenses totaling up to $20,000 a year just to maintain a property in Florida, many Canadians are finding it more economical to sell their homes.

Overall, the trend of Canadian snowbirds selling their Florida homes is driven by a combination of economic factors, safety concerns, and a desire for greater flexibility in travel. As the cost of living and maintaining property in Florida continues to rise, more Canadians are opting to explore alternative options for their winter retreats.