For those of you who take an interest in “useless but important information” (thank you Jimmy Buffet), here is some insight from Canada’s top five banks – “Snowbird Travel is Alive and Well”
In descending order – the favourite U.S. spots for Canada Snowbirds is Florida, Georgia, South Carolina, Arizona, Texas, California and Nevada. It is also suggested a majority of Snowbirds are “Parrot Heads”. Most drive and/or rent a car when arriving at their destination. Due to proximity, some BC and Alberta residents head to Hawaii as their winter retreat.
Snowbird migratory flights south have not been deterred by rising inflation costs, higher interest rates, and higher exchange rates!
Over the last year, the USD has risen from 1.28 to 1.37 CDN. Almost a 10% devaluation of the Cdn dollar to the USD. Add on inflation ranging from 6 to 10% and it is easy to see the cost of going south has soared. As an example a Canadian who wants to travel to the US pays an extra 45% (extra bank fees) just in currency exchange.
Rising interest rates have also caused a conundrum for those who have purchased US property. On the one hand the rising US dollar means your property is worth more. On the other hand the Real Estate market is in the doldrums because of higher borrowing costs.
Canadian amateur golfers who head south for a winter green fix, are also having a financial shock. Unfortunately the bite to their pocket book leaves many wanting to play on public courses as compared to being tied to a private club. Golf communities abound across the southern USA and if you are looking for Real Estate now is a good time to buy. Unfortunately, most clubs have mandatory minimum monthly bar and membership fees which quickly scuttle many a senior’s dream who is on a fixed income.
Snowbirds though, are very adaptable. They are employing a number of strategies to fight back. The main one is the cutting back on non-essential dining. Happy Hours remain in great demand and Coupon savers have quadrupled. Lets not forget trips to Costco and Target for food and beverages. Interestingly, US gas prices have not been a factor. Gas is drastically less expensive when compared to Canada, regardless of the exchange rate.
Canada Snowbirds need to remember. When travelling or roaming throughout the US accidents can happen. Should a problem arise reach out to snowbirdaccidents.com.