The High Cost of Sunshine: How Insurance and Housing Are Reshaping Snowbird Living

For years, the snowbird lifestyle felt like the ultimate retirement reward: trading icy sidewalks for palm trees, spending winters in the sun and returning north when spring arrived. Many retirees turned that dream into a seasonal routine by purchasing second homes in warm-weather destinations.

But lately, that routine has become more expensive and complicated. Rising insurance premiums, higher property taxes, maintenance costs and travel expenses are forcing many seasonal residents to reconsider whether owning a winter home still makes financial sense.

Snowbirds still want sunshine. Increasingly, though, retirees are prioritizing flexibility, shortening seasonal stays, renting instead of owning or exploring new destinations rather than tying up savings in a property used only part of the year.

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What the traditional snowbird lifestyle looked like

For generations, snowbirds, primarily retirees from colder northern states and Canada, migrated south each winter. Many purchased second homes or condos and spent three to six months there each winter.

This pattern created entire seasonal economies. Snowbirds boosted demand for:

Vacation and retirement housing
Restaurants and retail
Healthcare and service industries
Local tourism and recreation

In states like Florida and Arizona, seasonal residents became an essential part of the housing market and local economies. Condo developments, 55+ communities and RV parks were built around predictable winter demand.

Ownership was often seen as both a lifestyle and a financial decision. Property values in popular retirement destinations rose steadily for decades, reinforcing the idea that a winter home could double as an investment.

That equation is now shifting.

The rising cost of owning a second home

The biggest shift snowbirds are feeling is simple: it’s getting much more expensive to maintain a second property.

Insurance spikes in climate-risk regions

Insurance has quickly become one of the largest and most unpredictable expenses for seasonal homeowners. In many coastal and hurricane-prone areas, home insurance premiums have surged over the past few years as insurers adjust to higher climate risks and costly disasters.

Some homeowners have seen premiums double, or more. Others are facing limited coverage options or being pushed into state-backed insurance plans that often come with higher costs, less protection and stricter terms. For retirees living on fixed incomes, these sudden increases can throw off carefully planned budgets.

HOA, maintenance and property tax increases

Insurance isn’t the only expense climbing. Many snowbirds are also dealing with:

Rising HOA fees as buildings face higher repair and reserve costs
Property tax increases tied to pandemic-era home price growth
Higher maintenance and repair costs due to inflation and labor shortages

Even routine upkeep like landscaping, cleaning, pest control and repairs costs more than it did just a few years ago. What used to be a manageable annual expense can now rival the cost of renting a winter property outright.

Currency and travel pressures

For international snowbirds, especially Canadians, exchange rates and travel costs add another layer of complexity. A strong U.S. dollar can make everything from property taxes to groceries more expensive, while insurance and healthcare requirements for extended stays have also grown more complicated.

Some longtime seasonal residents are responding by selling U.S. properties or spending fewer months there each year.

Why insurance is becoming a tipping point

Of all the rising costs, insurance is increasingly pushing retirees to rethink second-home ownership.

Climate risk is driving pricing

Insurers are relying heavily on detailed risk models that factor in hurricane exposure, flooding, wildfires and other climate-related threats. Properties near coastlines or in higher-risk zones can carry significantly higher premiums, and those costs can rise quickly after major disasters.

For snowbirds who use their homes only part of the year, paying rising insurance costs on a property that often sits empty can be difficult to justify.

Coverage is harder to find

In some regions, the challenge extends beyond cost to availability. Several insurers have reduced or eliminated coverage in high-risk states, leaving homeowners with fewer options.

Seasonal properties can be particularly difficult to insure because extended vacancies increase the likelihood of undetected damage. Policies may require additional monitoring, routine inspections or higher deductibles, adding to the overall cost and complexity of maintaining a second home.

These insurance pressures are beginning to influence where retirees choose to spend winters. Some traditional snowbird hotspots are seeing softer demand from buyers concerned about long-term climate risk and ownership costs.

Retirement geography is shifting

Woman dangles feet in a mountain lake at sunrise.

Interest is gradually expanding toward inland or lower-risk destinations, where insurance availability and property expenses may be more predictable.

Several emerging snowbird destinations are attracting retirees looking for a balance between warm weather and more manageable ownership costs. Industry analyses of active-adult communities, including research from 55places, highlight growing interest in affordable 55+ developments across the Sun Belt and secondary retirement markets.

Inland Florida cities such as Ocala and Gainesville are drawing attention because they offer access to traditional retirement hubs while sitting farther from hurricane-prone coastlines.

Parts of central Texas, including San Antonio and surrounding Hill Country communities, are also gaining interest for relatively affordable housing and growing popularity among seasonal residents. Snowbird destination guides note that southern Texas remains a major snowbird region and is often more affordable than other warm-weather destinations.

In Arizona, retirees continue to gravitate toward areas outside Phoenix’s most expensive suburbs, including communities in the Tucson region, where housing and property taxes may be more accessible.

Beyond traditional Sun Belt hotspots, some snowbirds are expanding their search to Southeastern cities like Greenville, South Carolina, and parts of coastal Alabama. According to migration trends from the National Association of REALTORS®, Alabama is among the states experiencing inbound moves, driven in part by affordability and lifestyle factors attractive to retirees.

These secondary and inland markets often provide milder winters and lower ownership costs than beachfront communities while offering many of the same lifestyle amenities retirees seek, including active adult communities, outdoor recreation and social retirement networks.

The real estate ripple effects

As more snowbirds reconsider ownership, local housing markets are starting to feel the impact.

More listings in some seasonal markets

In some retirement communities, there’s been a noticeable uptick in seasonal homes hitting the market. According to Redfin data, the supply of homes for sale in vacation destinations rose 17% year over year, outpacing inventory growth in many non-seasonal markets.

That doesn’t mean demand for warm-weather living has disappeared (far from it). But buyers are becoming more cautious and price-sensitive, especially when factoring in insurance and long-term maintenance expenses.

Rentals and flexible options are gaining popularity

At the same time, renting for the winter is becoming more appealing. Seasonal rentals allow retirees to enjoy warm weather without taking on year-round ownership costs or worrying about surprise repairs and insurance hikes.

Many snowbirds are realizing that renting for three or four months can cost less than maintaining a second home all year, and it offers the freedom to try new destinations without being tied down.

Developers and property managers are responding by offering more furnished seasonal rentals, extended-stay options and flexible lease terms geared toward retirees.

Snowbirds aren’t disappearing — they’re adapting

The desire to escape cold winters hasn’t gone anywhere. If anything, retirees still value the lifestyle and social connections that come with seasonal migration. What’s changing is how they make it work financially.

Renting instead of owning

More retirees are choosing to rent rather than buy. This approach keeps their money accessible for travel, healthcare or everyday living expenses instead of tying it up in a property that may be costly to maintain.

Renting also allows snowbirds to adjust plans year by year, whether that means staying longer, leaving earlier or trying a new location.

Exploring new destinations

Some seasonal residents are expanding their horizons beyond traditional hotspots. Lower-cost domestic destinations, and even some international options, can offer warm weather without the same level of insurance and housing expenses.

Shorter stays and more flexibility

Rather than spending half the year away, some retirees are shortening winter trips to manage costs. A few months in the sun can still provide the lifestyle boost they want without the full financial commitment of long seasonal stays.

Flexibility has become the new priority.

What retirees should consider before buying a snowbird property

For retirees still dreaming of a winter home, careful planning is more important than ever.

Understand the true cost of ownership: It’s easy to focus on the purchase price, but the ongoing costs matter just as much if not more. Running the numbers honestly can help determine whether buying still makes sense compared with renting.
Check insurance early: Before committing to a purchase, it’s essential to confirm that adequate insurance is available and affordable. Getting quotes and understanding potential future increases can prevent unpleasant surprises later.
Have an exit plan: Markets change, and so do personal circumstances. Retirees should think about how easy it would be to sell the property if needed and whether it could generate rental income in the meantime.

Having a clear exit strategy helps preserve financial flexibility.

A new era of snowbird living

The classic image of retirees owning a winter getaway and returning every year isn’t disappearing, but it is evolving.

Rising insurance premiums, higher housing costs and broader economic uncertainty are pushing many to rethink long-standing habits. Instead of automatically buying second homes, today’s snowbirds are weighing flexibility, liquidity and long-term risk more carefully.

Warm winters are still very much part of the retirement dream. The difference is that more retirees are finding new, more adaptable ways to make that dream work.

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Choncé is a personal finance freelance writer who enjoys writing about eCommerce, savings, banking, credit cards, and insurance. Having a background in journalism, she decided to dive deep into the world of content writing in 2013 after noticing many publications transitioning to digital formats. She has more than 10 years of experience writing content and graduated from Northern Illinois University.