In 2018, the New York metropolitan area was losing 100 people per day on average, most of it to Florida. Now it is closer to 270 per day. While the rest of the country hunkers down and waits for the pandemic to pass, New York continues to see an uptick in out-migrations. Florida’s tax laws have long been a draw for wealthy individuals, but the pandemic has increased the state’s allure and the disruptions have pushed many of the wealthiest New Yorkers to relocate sooner than they had originally planned.
How is the industry taking advantage of these massive shifts in buyer behavior and what can you do to position yourself to capitalize on this opportunity?
UNDERSTAND THE TREND
Being more knowledgeable about the New York exodus to Florida is the first step to capturing your piece of this unique selling opportunity. Below, we summarize some of the biggest reasons New Yorkers are moving to Florida:
- No state and city personal income taxes
- A resident of Florida doesn’t pay state income taxes. Instead, Florida’s income is generated from sales tax and excise taxes. Living in New York City can add 13 percent to your tax bill for state and city taxes. For New Yorkers earning $1,000,000 per year, that’s savings of $130,000 per year.
- Cost of living in Miami is half that of NYC
- According to BestPlaces.net, Miami costs over 50 percent less than New York City. In Downtown Miami, such as Edgewater and Brickell, prices can be quite reasonable for condos in new buildings with great views of Biscayne Bay. Those in Miami Beach, however, can be comparable to New York in terms of prices, particularly for the best oceanfront properties.
- No capital gains tax in Florida
- Florida does not have an income tax for state residents and, therefore, has no capital gains tax for individuals. By contrast, New York City and State taxes capital gains at ordinary income rates. However, under New York tax law, an individual that establishes a domicile outside of New York will still be deemed a “statutory resident” of New York if he or she (a) maintains a “permanent place of abode” in New York for substantially all of the taxable year and (b) spends more than 183 days in New York during the taxable year.
- Lifestyle and weather
- Moving to Miami from NYC can add another element to your life not found in New York. Due to the year-round warm weather, pursuing a more active outdoor lifestyle is common for many. Additionally, Miami has gone through a cultural transformation through the years and now has many offerings for those interested in the arts. Over the last 10 years, Miami has seen the addition of the Adrienne Arsht Performing Art Center, Perez Art Museum, and the Frost Museum of Science. The Design District neighborhood has exploded with high-end fashion labels and the Wynwood Walls attracts many with its outdoor art installations, restaurants, and bars. On top of that, the international art fair, Art Basel, attracts some of the wealthiest people in the world during the first week in December every year.
SO HOW DO YOU TAKE ADVANTAGE?
Listing3D Exclusives is a referral network designed to connect similar tech forward agents who also value attention to detail and quality media assets. Centralized, searchable, and shareable quality media is something the real estate industry as a whole desperately lacks. Listing3D has worked to fix this problem for the last 3 years. How often is an agent caught sharing someone else’s listing with terrible iPhone photos or a dizzying cell phone video?
The necessity for 3D tours has exploded since the onset of Covid-19 in March, yet none of the top listing sites have made a focus out of the tool. Every sales listing we scan will now live on our Listing3D Exclusives Network. Any agent with an account will be able to sort through the 3D sales listings and send them to their clients for review. Similar to MLS, the sharing feature will display their own name and logo. Ultimately, Listing3D Exclusives helps to facilitate transactions for our users by connecting the Miami market with New York agents.