South Florida isn’t cheap. We all know that. But it’s also nowhere near as expensive as many other destinations across the country. The benefit of not having a state income tax, shared by only four other states, dramatically improves the cost of living dynamic relative to most. Yes, it’s offset by higher local property taxes and higher than average housing costs but put it all together and you’re getting a deal.
The Tax Foundation just completed a study on The Relative Value of $100 and we’re getting a great value in Florida. Only 13 states are more affordable based on the buying power of $100 and we’re getting more than $100 of value out of $100. According to the study a $100 buys $100.10 worth of Florida life. A $100 goes furthest in Mississippi where it has the buying power of $116.69. On the flip side, a $100 only nets you $84.39 worth of value in Hawaii. New York and California are next at $86 and $87.
This illustrates quite clearly the overall value proposition of Florida compared to most states but especially northeastern states like New York. You’d have to earn $114 in New York to retain the same buying power of $100 in Florida. You might imagine that the conveyor belt from the northeast to South Florida is only going to accelerate based on this information. Also, it’s a reminder to appreciate South Florida. Most people wish they were here, and generally, the grass isn’t greener elsewhere.
Photo by: Mark Wilson/Getty Images