Follow The Money To Florida: Young Rich Professionals Flock To The Sunshine State

 
Florida is shedding its stereotype of being “Heaven’s waiting room,” as we have been historically described with a healthy dose of snark. A post-COVID mass exodus from cities such as New York, Chicago and Los Angeles has earned Florida the position of amassing the highest number of affluent young professionals over any state in the US, according to IRS earnings data.

Smart Asset did a recent study with findings from IRS data from 2021 to see where young professionals, people aged 26-35 who earn $200,000 per year or more, are moving. By and large, they are flocking to Florida and more specifically, to Miami. This migration is evident along the streets of Brickell and Downtown Miami, where high paying jobs and entertainment options are plentiful. Coconut Grove is another hot neighborhood for the young and moneyed with our laid back yet upscale atmosphere.

According to the study, Florida saw 3,391 high-earning young professionals and 1,216 high-earners left the state, resulting in 2,175 as the net migration. Texas was a close secod with 1,909 new high-earners in their tax roll. These young and affluent taxpayers represent the top 2% of earners in that age bracket, and they come with the added expectation that their salaries will continue to grow as they become more experienced in their career paths.

Where These Earners Are Coming From

According to CNBC, many of these high earners are coming from highly-taxed states like New York and California. While this is certainly the case, we have also seen a mass migration in the Miami area from Chicago after Ken Griffin’s Citadel announced the relocation of its headquarters to the Magic City last year.

The young professionals are both chasing opportunities from companies like Citadel, where interns could earn up to $19,000 per month, and running from the problems of their home cities. The local governments in New York and California have become so tolerant and permissive of the problems many cities face, they have become havens for crime, drugs and homelessness. The young and productive would obviously rather live in a cleaner and safer city that is ripe with opportunity, and here we are.

What This Means For Miami

As this migration continues, the only realistic result is that demand for housing in the urban core of Miami and surrounding areas is not likely to let up anytime soon. Citadel hasn’t even begun construction on their new headquarters and ancillary firms are following suit increasingly as they get settled. The job market in Miami is incredibly rich on the professional level, so we will need every one of the new housing units in the construction pipeline to be developed.

While the new housing units are going up, we will also need more schools. There is an incredible strain on Miami’s school system, particularly with the private schools. These are issues that we are working out as we go along, with outposts of some of New York’s most prestigious schools opening in the South Florida area.

In a nutshell, Miami is on the map in a large way with the young professional crowd. We offer the lifestyle, professional enrichment and rich culture that make us a long-term winner for them to lay ground roots and thrive.

If you would like to discuss moving to a new neighborhood or building in the Miami area, please contact Douglas Elliman Real Estate broker Michael Light at 786-566-1700 or via email at michael@miamiluxuryhomes.com.