Snowbirds face rising costs for winter stays in Florida

Canadians heading to Florida for the winter are confronting significantly higher living costs this season. The combination of a weak Canadian dollar, persistent inflation and increased fees for condominium living is stretching budgets. Experts point to several key financial pressures, including currency exchange rates and new regulations for condo buildings. These factors are making the traditional snowbird retreat more expensive than in previous years.

The Canadian dollar has been trading below 74 U.S. cents throughout 2026, according to Bank of Canada data. This represents a decline from an average of about 77 cents in 2022. Based on an exchange rate of approximately 71.25 U.S. cents on Oct. 28, a monthly rent of US$3,000 now costs about $4,211 in Canadian funds. That is up from $3,705 in October 2021, adding $506 per month or over $2,000 for a typical four-month stay before conversion fees. Karl Schamotta, chief market strategist at payments firm Corpay, said currency fluctuations remain a concern for Canadians spending months in the U.S.

Schamotta noted the loonie could weaken further if inflation and interest rates rise faster in the United States. He also cited tariff uncertainty and Canada's housing market as potential weights on the currency. "The one thing snowbirds can depend on is turbulence in the loonie," Schamotta said. Even with a flat year-over-year currency, Canadians may find their U.S. dollars buy less due to inflation. The price of regular gasoline in Florida, for example, has jumped to US$4.23 per gallon from about US$2.90 a year ago.

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New Florida regulations for condominiums are driving up monthly fees for many owners. The rules, introduced after the 2021 Surfside building collapse, require associations to conduct structural studies and set aside money for major repairs. Median monthly condo fees in Miami-Dade County reached US$945 for the first seven months of 2026, a 13.9 per cent increase from 2025, according to data from NerdHOA. In Palm Beach County, the median fee rose 14.9 per cent to US$800. Condominium lawyer Jason Hamilton Mikes said the stricter reserve-funding requirements represent a trade-off for owners.

"It means more money out of owners’ pockets every year, but it prevents them from feeling the pain of a much larger special assessment that might come out of the blue in any particular year," Mikes said. Special assessments are extra charges levied on owners to cover unexpected major repairs. Realtor Kathryn Smiley recently advised a Canadian client against a condo purchase where monthly fees were set to double from US$600 to over US$1,200. The client bought a single-family home in Central Florida instead, seeking more predictable costs. "It’s no longer just about what you can afford to buy. It’s about what you can afford to keep," Smiley said.

Insurance costs are adding another layer of expense, though some rates have recently fallen. Florida's state-backed insurer, Citizens Property Insurance Corporation, approved average 2026 rate increases of 7.7 per cent for condo association property insurance. However, Citizens reduced rates this year for other policies, including an average 8.7 per cent cut for standard homeowners coverage. The insurer attributed the decreases to market reforms that reduced litigation and increased competition. These reductions apply to individual residential policies, not the condo association policies facing hikes.

Common insurance policies for vacation homes often provide less coverage, according to Mark Friedlander of the Insurance Information Institute. Dwelling-fire policies may exclude personal liability, contents coverage and additional living expenses. Flood damage is a major coverage gap, as standard property insurance does not cover it. Citizens will require most of its remaining residential policyholders with wind coverage to purchase flood insurance starting Jan. 1, 2027, even for properties outside high-risk zones. "Just one inch of water can equal $25,000 damage," Friedlander said. "You can imagine if you have a foot of floodwater in your home. That’s a massive loss and very devastating financially."

Medical insurance remains an essential and potentially costly part of planning a long stay. Premiums for travel health coverage can increase with age or the development of new health conditions. Stephen Fine, president of Snowbird Advisor Insurance, said premiums depend on factors like age, medical history and length of stay. He noted some policies require a traveller's pre-existing conditions to be stable for 90 or 180 days before departure. This requirement is a key consideration for snowbirds managing their health and finances for the winter season.

With files from Financial Post