Florida reaps benefits, as NYC incurs costs from influx of affluent residents leaving NYC for South Florida
South Florida, America's Emerging Capital for Capital
Leading real estate developers and city leaders in South Florida argue that the region is poised for continued growth as thousands of high-earners depart New York for the sunshine state.
Jon Paul Perez, CEO of Related Group, and Nelson Stabile, founder of Integra Investments and current president of the Builders Association of South Florida, reacted to data showing tens of thousands of high-income residents fled New York for Florida, bringing their wealth with them.
Perez believes that the trend is permanent, given the losses New York City incurred, with over $9.2 billion going to Palm Beach, Broward, and Miami-Dade counties between 2017 and 2022, according to a report from the Citizens Budget Commission.
Stabile also highlighted the region's business-friendly environment, pro-business stance, and quicker recovery from the pandemic, which has kept South Florida thriving.
Perez emphasized the importance of creating housing for everyone, not just the wealthy, as Related Group seeks to shape Miami into a world-class city that caters to diverse income levels.
Stabile noted the recognition of the South Florida market pre-pandemic but added that the pandemic led to a transformation in the region.
Miami has emerged as a hub for finance, tech, hospitality, and big cruise industries, becoming a more diversified economy in the last five years. The city's brain drain from New York has contributed to its growth and transformation.
Companies like Citadel, Starwood Capital, Apple, Kaseya, and Related Ross have established a presence in Miami, further boosting the city's appeal.
However, there is concern about the rising demand and low supply pushing up housing prices and potentially pricing residents out of the market, similar to what has happened in New York City.
In response, developers and city planners are working together to streamline residential and commercial building projects to meet permanent migration demands and reduce traffic congestion around public transportation nodes.
Florida's Live Local Act also aims to promote affordable housing by offering developers incentives like tax, regulatory, land use, and funding benefits.
As South Florida continues to grow and attract high-earners, concerns around affordable housing and infrastructure will need to be addressed to sustain the city's expansion.
- Jon Paul Perez, the CEO of Related Group, believes the trend of high-income New York residents moving to South Florida is permanent, given the financial losses incurred by New York City.
- Nelson Stabile, founder of Integra Investments, highlights South Florida's business-friendly environment and quicker recovery from the pandemic as contributors to its continued growth.
- Related Group, under Perez's leadership, aims to shape Miami into a world-class city that caters to diverse income levels, focusing on providing housing for everyone, not just the wealthy.
- Miami has attracted a number of major companies, like Citadel, Starwood Capital, Apple, Kaseya, and Related Ross, further boosting its appeal.
- However, the rising demand for housing and low supply in South Florida could lead to a potential increase in housing prices, similar to New York City's situation.
- To address these concerns, developers and city planners are collaborating to streamline residential and commercial building projects, and Florida's Live Local Act aims to promote affordable housing through various incentives like tax benefits and funding.
