What Does New York City Politics Have to Do With The South Florida Real Estate Market?

Despite facing challenges in South Florida’s real estate market, largely due to oversupply, insurance, mortgage rates, older condos and affordability, there is going to be an uptick in relocations to Florida.

What are the reasons for such an increase in South Florida real estate activity?

As discussed in an earlier blog, corporate relocations to Florida, particularly from high taxed states such as New York and California, are often driven by the desire to reduce taxes and to move to a sunnier climate.

In addition, currently, another reason for the potential resurgence in the Florida real estate market, especially from lifelong New Yorkers, involves the local mayoral race.  The current winner of the Democratic mayoral race is Zohran Mamdani who has run on a platform of offering free services by raising the City corporate tax rate to 11.5 %, implementing a 2% tax on incomes over $1 million, and raising the New York minimum wage eventually to $30 by 2030.

Consequently, some New Yorkers and their corporations have an increased interest in divesting from New York and relocating to South Florida due to concerns that the Democratic candidate, if elected, may heavily tax certain corporations and wealthy individuals in order to accomplish campaign promises.  Some New Yorkers are also concerned that the New York City real estate market may not show strong growth over the next several years based on the new NYC  political climate.

What may be the effect of increased relocations on the South Florida real estate market?

Should more New Yorkers wind up moving to Florida because of such politics, our property values will start to stabilize, and our economy will grow with new corporate relocations.  The current glut in housing inventory will eventually be reabsorbed by the potential demand for New Yorkers purchasing residential as well as commercial real estate.

What does this all mean?

Historically, the South Florida real estate market is dependent, in part, upon corporate and personal relocations from other states.  During the onset of the COVID-19 pandemic, the South Florida real estate market experienced a strong migration of residential and commercial real estate buyers.  Regardless of the reason for moving to Florida we all can agree that relocations to our residential and commercial real estate market will provide more buyers adding to our economy and igniting a surge in South Florida real estate purchases.

Our law firm, Oppenheim Law, can assist in making your transition to Florida as smooth as possible. The title professionals, at our sister company, Weston Title & Escrow, are here to help when you are purchasing a home and our attorneys are here to answer any questions you may have. On a personal note, I moved from New York City more than 35 years ago with my partner and wife, Ellen, so I look forward to guiding you should you decide to relocate to Florida. Should you have any questions, kindly call us at 954-384-6114 or e-mail us at contactus@oplaw.net.