Millionaire Migration to the Sunshine State Continues
There's been a lot of talk about shifts to the housing market nationally, and we're not immune to them in Florida or specifically in Sarasota.
One of the counterpoints, though, and an important demographic trend that began before 2020 and reached a crescendo during the pandemic is the relocation of high net worth individuals to the Sunshine State. The combination of an easy-to-love climate and considerable tax advantages (both income and estate tax) has long lured wealthy residents to Florida.
With remote work taking hold during the pandemic and lifestyle changes and amenity depreciation negatively affecting some of the U.S.'s biggest markets like New York and San Francisco, the influx of high net worth permanent residents has escalated.
Millionaire Migration to the Sunshine State Continues
Fortune Magazine is one of many outlets to detail the trends and what that means for our markets over time.
It's not just housing that is affected by aggregate changes in residential wealth. More consumer spending in the community means more retail businesses, restaurants, service enterprises, and employment. And that employment potential attracts even more residents who represent a different earnings spectrum and different housing and consumption needs - all feeding into the greater economy and local revenues that support our schools and public projects.
For our affluent clients considering either a home sale or search, there are specific implications. While the frenzied market dynamics have pretty much ended, the price tolerance for especially desirable homes remains high, meaning that any dreams of a bargain are just that... dreams. This market requires a balance between ambition and strategy to take advantage of timing and trends. If you've got questions about local market dynamics, click here to get in touch.
