In 2001 I moved to Florida from Texas. I was in a hotel in Maitland (right outside of downtown Orlando) and was having breakfast. Speaking to another couple who had just moved to the Greater Orlando area; they told me they were driving to “Lake Nona” that day to look for a home. So my wife, Char Pei Hershey, and I hopped in the rental and 45 minutes later hit cow pastures. In 2001, Lake Nona was open ground. There was a biker bar “Becky’s Bar N Grill that became Sweet Mama’s, a couple of trailer parks, the Estates where the golf pros lived, and a 7-11 off the 528 freeway. Nothing else but a Subdivision that had just started.
We were a young family and knew our family would grow. We grabby a 5-bedroom home on a nature preserve with my VA loan for 200,000 and settled into life. Grocery stores were a 1/2 hour away and preschool was a 30-minute drive but we had our “big house”.
Luck, patience, and the sprawl of Orlando came to us. Schools, Grocery Stores, development. Do yourself a favor and google Lake Nona now and Medical City and see what it has become. We build wealth on that growth and pivoted.
So why am I telling you this? Well, we are now at the 22-year high on interest rates. Inflation and the cost of living in once affordable Orlando and Tampa have skyrocketed….here are some stats for you to chew on:
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Lakeland14.9% less expensive than Tampa, and housing costs are 27.9% less expensive
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Winter HavenThe median home cost in Winter Haven is $281,200, compared to $381,000 in Tampa
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Average cost of livingThe average cost of living in Winter Haven is $1715, which is in the top 24% of the most expensive cities in the world
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Median home valueThe median home value in Lakeland is 24% below Tampa, and 22% below the national average
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Cost of living indexThe cost of living index for Winter Haven is 88.8, compared to 103.7 for Tampa
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Cost of living compared to Florida and national averagesThe cost of living in Winter Haven is 9% lower than the Florida average, and 10% lower than the national average
TO ORLANDO
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OrlandoThe average cost of living in Orlando is $2226, which is in the top 4% of the most expensive cities in the world
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LakelandLakeland is 14.5% less expensive than Orlando, and housing costs are 24.9% less expensive
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Winter HavenThe cost of living in Winter Haven is 9% lower than the Florida average and 10% lower than the national average
So why do I share this? As a business broker, you either buy strategically or you buy a job. It is no more complicated than that. So with the cost of living and the cost of capital rising the real costs of living become a factor. Consumers want convenience but hard realities kick in as well. I made the move to Lakeland 2 years ago. In essence, taking my poker chips off the table. I cashed out of my home with lots of equity. Pivoted to a larger home at the same price i bought for and leveraged. That home has not appreciated some 37% in 3 years. Why…well because people move where there is affordability. Do we have less conveniences yes; but we have less traffic, schools are less crowded, and its safer.
So the business broker in me is writing this to point out the opportunity. Wealth creation for the middle class largely comes from housing appreciation. The Lakeland /. Winter Haven metroplex will grow. It has to….like a virus, the sprawl will push this way….it can not go east and west as there is water so the middle makes sense for a ton of reasons. Logistics, Distribution, and most importantly housing that is affordable for workers.
If you are a nurse, teacher, or factory worker and you want the American dream…well 14% cost of living delta for one’s family is a real delineator. Just as factories move from burdensome tax-heavy states so do employees move. It’s just Darwinism. Like animals in the wild….when the source of life (food or water) dwindles the animals migrate. You will see a massive migration in the next decade.
With the addition of rail, you will see Volusia, Polk, and Brevard County Grow exponentially. Smart investors will make the pivot and reap the reward. That nurse who is struggling to get by in Orlando with higher food, and housing…can sell their home, put cash in their pocket, and move to a bigger home (yes less shopping but you can’t afford to anyways as your cost of living increases is not keeping pace) and work in a Lakeland Hospital and have more. It only makes sense that across the board the smarter play is to pivot now and catch the next wave of growth despite the temporary inconvenience of the move
For more on small business and life contact Tampa Business Broker Michael Shea at 321-287-0349.