Millennial Woes: Unaffordable Housing and Skyrocketing Property Insurance Rates Are Destroying the American Dream
Millennials are familiar with financial struggles, with the eldest of the generation facing the brunt of the 2008 Great Recession and the youngest faced with the reality of being priced out of the housing market. In Broward County alone, high-earning millennials forced into rentals has increased by nearly 10%. Miami is now more expensive than Los Angeles, with far lower average salaries, and most South Florida households are spending at least 80% of their income on housing. In West Palm Beach, only 9% of homeowners are under the age of 35.
Even if a millennial homebuyer is lucky enough to find a home within their price range, property insurance increases are taking the American dream of owning a home even further away. In some cases, individuals in Florida are paying well-over their mortgage for property insurance. Rates are continuing to increase, with even the insurer of last resort, Citizens Property Insurance Company, looking to increase rates 11%.
Many insurance companies are citing underwriting losses. Citizens Property Insurance in particular is stating losses are why policyholders should expect rate increases. However, Citizens has been accruing nearly 5,500 policies each week. Yet policyholders continue to pay nearly double the national average, and sometimes far over it, for bare minimal coverage.
Despite recent changes to Florida law aimed at preventing alleged fraud by attorneys, roofing companies, and public adjusters, property insurance rates have continued to skyrocket out of control. In combination with an unaffordable housing market, many millennials are quickly being left to face the reality that homeownership is unlikely anywhere in the future unless they leave the area.
This article is not intended to constitute legal advice nor create an attorney-client relationship.