Statistics show that New York residents wanting to escape the state’s harsh winters in Florida have mostly been migrating to Orlando, Miami, and Tampa over the past five years.
140,000 New Yorkers moved to Florida because it has no state income taxes or payroll taxes, making it a magnet for billionaires and major companies.
New York as a whole has lost 83,400 residents who decided to move to Florida since 2018. Tampa received the greatest number of domestic migrants, whose number reached 34,000 people. 23,500 and 25,900 New Yorkers settled in Orlando and Miami respectively.
Wealthy New York residents usually opt for Miami. Their average household income is still 60.2% higher than that of locals, which drove the rents up.
Many expected that the higher level of net migration from New York to Florida markets would stabilize or reduce as employees are called back to New York offices or when New York migrants start missing the Big Apple lifestyle, notes Ben Witten, Head of Real Estate at Placer.ai. Recent data, however, clearly shows that these trends continue to accelerate, especially in Orlando.
Miami was affected by this wave of migration later, as COVID-19 restrictions forced the majority of people newly arrived to South Florida to go south during 2020 and afterwards.
140,000 people is a fantastic number, taking into account that the same number of Florida land plots is expected to go underwater by 2050 because of the climate change.
The tax base of Miami-Dade County may reduce by approximately $3.8 billion due to the rising sea level but it is not yet clear whether the new wave of taxpayers will improve the state’s economy.