Miami, long known for its vibrant culture and as a haven for retirees, is experiencing a significant shift in affordability. The cost of living has risen sharply, influenced by a variety of factors, including the 2017 tax law changes.
How did a federal tax change impact the cost of living in Miami?
The Tax Cuts and Jobs Act of 2017 has had unintended consequences on Miami’s economy. High-tax state residents, seeking relief, have relocated to Miami, inadvertently driving up living costs for locals. This has led to an influx of new residents from high-tax states, driving up the cost of real estate in the area.
Although this tax law played a significant role in the surge of residents moving to the Sunshine State, it is only one factor. Another was the impact of the pandemic. The pandemic led workplaces to shift to a remote environment. This allowed workers more flexibility to live where they want instead of where they need to be. With that level of flexibility, many chose sunshine and beaches over boardrooms and skyscrapers.
Regardless of the reason for the surge in residents calling Florida home, the increased population has led to higher demand for real estate and triggered an increase in property values. As the cost of housing rises, associated expenses such as home insurance also increase — and these increases are significant. Between the increased demand and the damage done by natural disasters, some experts predict home insurance rates to go up by 40% in 2023 alone. These increased costs create a domino effect that burdens long-term residents.
Is bankruptcy right for me?
Bankruptcy often carries a stigma, but in Miami’s current economy, it’s important to understand that financial struggles are not always the result of personal failings. The systemic economic shifts have left many without options.
During these difficult times, bankruptcy can be a viable solution to overwhelming debt.
If you find yourself struggling financially, bankruptcy is a legal recourse meant to offer a fresh start. An attorney experienced in this niche area of the law can review your situation and discuss the benefits and risks of filing for relief through bankruptcy. With this information, you can increase the likelihood that you make the decision that is best for your financial future.
