Another nickname for Northerners who retire down South has emerged – along with a new home-buying trend.
A potentially worthy companion for ‘snowbird’ – the term commonly used to describe people who migrate to Florida as soon as the first frost up North – is ‘half back.’
“These retirees are called half backs or half back retirees as they move “halfway back” to their original state,” explained Alissa Sauer, a contributing writer with Leisure Care.
The privately held retirement and assisted living company reported on the recent inclination of Florida-based retirees to press further north, relocating to states like Georgia, Tennessee, Virginia, the Carolinas, and elsewhere.
Raleigh, North Carolina has seen a 60% increase in its 65-plus population in the decade spanning 2000 to 2010. The 55-64 population grew by 97% over the same period. Other mid-South cities with increases of more than 35% include Charlotte, Atlanta, and Chattanooga.
This is a newer phenomenon in the Sunshine State, where increasing climate disasters have led to declining affordability and quick action by the government-sponsored enterprises (GSEs) to tighten loan regulations and property eligibility standards.
The average annual homeowners insurance rate is expected to rise 6% nationwide this year to $2,522, according to Insurify. In Florida that rate is currently higher than any other state, averaging $10,996 a year.
“There are a wide range of reasons why seniors are moving ‘half back’ home,” Sauer continued. “Mid-South states still offer the weather that draws seniors to more traditional retirement states, but often without the crowds and the cost.”
Hazard/flood insurance rates are often four times higher in Florida than in Virginia. Pegged onto higher property taxes and a desire for sunny and safe living, retirees are choosing other locations in which to settle down.
In mid-September, the FHFA launched the "Mortgage Loan and Natural Disaster Dashboard" to help borrowers, lenders, and investors ascertain where homes and loans may be at increased risk of extreme weather events. This and other tools can help borrowers and loan officers alike identify the challenges associated with financing a home in certain locales.
