Got Miami Beach average sale
prices they're up 72% got prices up double digits in Boca
Wellington Bal Harbour Del Rey all across southern Florida. It
isn't called the Sunshine State for nothing. Over 230 days of
sunshine per year, 600 and some miles of beach, Disneyworld,
fancy sports cars, a wild nightlife, and of course, no
income tax. My kids nickname because we live in Orlando. They
called me Disney dad. When we would come here because I was
always in a good mood. We didn't stop hearing about Florida in
2020. from Florida now golden ticket in Florida. It sounds
like Florida. Well, you're not alone. Some of Wall Street's
biggest names like Goldman Sachs, Elliott, management and
Citadel group have or are considering opening offices in
Florida. High profile investors like Keith Rabois, Shervin
Pishevar and Jon Oringer already made the move. Even JetBlue is
considering it. For years, even though people would talk about
moving, it really wasn't cool among the wealthy to move to
Florida. It was like, okay, you couldn't hack it in New York, go
to Florida. Now, you're the chump who stayed in New York.
But it's not just COVID. Reports of Florida slowly morphing into
a legitimate tech and financial hub has been loosely talked
about for over a decade. In 2018, Florida solidified its
place in the big leagues when $2.88 billion was raised in
venture capital. That trend has continued all throughout 2020. I
think actually Miami has the opportunity within the next like
five to 10 years to you know not only become a tech hub, but
being the largest tech hub in the United States. Never in my
three decades of doing this have I ever seen the level of
economic development activity. But Florida's economy has long
been marked by low paying tourism and service sector jobs,
inequality and ravaging climate change. It's ranking near bottom
for affordable housing and health and unemployment
insurance access. As much as people understand Florida to be
a beautiful place to go and vacation. There is almost a
synonymous or parallel understanding that the state of
Florida is backwater hail for a lot of people. As consumer and
employment behavior shifted during the pandemic quality of
life became a priority. And Florida seemed like an obvious
choice, at least on the outside. Three Floridian cities were
among the top six choices for New Yorkers fleeing COVID. So
can Florida become the next big tech and finance hub? In December 2020, venture
capitalists Delian Asparouhov tweeted, okay, guys, hear me
out? What if we move Silicon Valley to Miami? I sort of had
this like, first moment where I'd kind of I'd say, like, a
crack in the foundation of my like, you know, belief in San
Francisco sort of occurred. Within hours, Miami Mayor,
Francis Suarez responded, how can I help. You know, by time I
visited in March, actually had more late stage in particular
investors, let's say Series B and beyond than San Francisco
did. Partially because how all of this sort of crossover in
hedge funds have entered into venture capital are deploying
more dollars than even the venture capital firms are. So
this nexus of power were sort of already shifting and a lot of
those have moved to Miami already, both professionally and
personally sort of had a sudden realization I was like, oh my
God being here. I got move here. That happened on a Friday night
and by Sunday night, we had you know, put a bid in on a house in
the design district. Delian's tweet and eventual move has
fueled momentum that Suarez and other locals have capitalized
on. From conversations with celebrities like David Beckham
and tech billionaire Peter Thiel to Softbank's pledged to invest
$100 million in the city. The notion that high earning jobs in
tech and finance could migrate down Florida, has locals
buzzing. Pre COVID we had landed maybe 50 or 60 financial service
firms. Many of them had somewhere in the range of $500
million assets under management. Now we're seeing companies that
have assets under management. well over a billion dollars. The
state has many draws. Aside from the sunshine its welcoming
business climate is high on the list. According to the Tax
Foundation, after Wyoming, South Dakota and Alaska, Florida is
the fourth friendliest business state in the country. No
individual income tax and low corporate and unemployment
insurance taxes. Looking at more than 60 measures
of competitiveness, CNBC ranks the state 12th fourth for access
to capital after California, New York and Texas. It was around
tax season, and my accountant jokingly said to me, why don't
you go move to that house you built down there and stop
busting my chops every April 14. I was like, alright. Casaburi is
a member of Tiger 21, a peer membership network for high net
worth individuals. He moved his family of six to Orlando about
six years ago. Lifestyle is fantastic. The obvious. The
weather's great. There's beaches all over the place. You're on
either coast. Airports are fantastic, yoou can be all over
the country very quickly. But really what's happening down
here is really incredible. Everywhere you drive around, you
see building. The past few years, we saw it happening,
then, you know, tack on COVID and it just exponentially
changed the impact. The influx of the wealthy has reflected in
real estate sales too. South Florida home sales valued $1
million and above jumped between 40 and 50% in 2020, compared to
2019. This is a long term move for
these companies. And I don't believe that they would be
signing eight to 10 year leases, with options to expand. I don't
believe that they would be putting their kids in schools
and uprooting them from their private schools and public
schools in New York, Boston and Connecticut if this weren't long
term, and I don't believe that they would be buying $20 million
homes if this were short term. There is so many amazing,
talented people from from every standpoint, from marketing
standpoint, from creative standpoint, from leadership
standpoint. And people are always willing to
move. Listen, if I was telling people to move to Nebraska, it
might be a little bit difficult to sell. The average financial
salesperson or analyst in Florida makes about half of what
they'd make in New York. That could be a deterring factor for
individuals choosing between job offers in New York or Florida.
We have a company that we recently offered, you know term
sheet here to LA that said, you know, for the past three or four
years that they've been building their company here, it really
struggled to find the talent that they needed locally in
Miami, and also really struggled with being able to import
talent. And they said that over the course of COVID, and in
particular now with Miami tech week flipping, they're basically
importing talent left and right and they're able to sort of get
their pick of the litter of the top tier engineers in the world.
Migration trends are a strong indicator of growth. Between
2010 and 2019, Florida received over 2.3 million more people
than it lost, the highest in the nation. The population grew by
nearly 15% in the last decade. But more than half of that
growth came from people aged 60 and above. In 2020. Contrary to
many reports, population growth was expected to slow down.
According to an independent analyst on cellphone data,
migration to Tampa and Orlando surged, but dropped sharply in
Miami. The overall impact ended up being roughly neutral. The
creation of millionaires, it happens in New York City, it
doesn't happen in Florida. Florida is a place where
millionaires go to retire. If you're a young person thinking
about you know, where am I going to launch my career, New York is
still you know where it's at, you know, and that'll be the
story next year and 10 years from now. Florida's economy has come a
long way over the past 50 years. In 1963, it was the 11th largest
economy in the country. Today, it's the fourth just behind New
York. Florida's gross state product, which is commonly used
to measure the health of an economy, also stayed well above
the national average in the seven years prior to COVID.
Except for the dips in the '08 recession, employment grew in
every category until 2020. True health of an economy is really
how the quote unquote bottom is doing. How are teachers doing?
How are our public sector workers are doing. And you will
see in Florida, just like in every other state, that teachers
are going mad, trying to trying to provide some sort of
education for children. Parents are going mad, trying to provide
some sort of lives for their children and live for
themselves. The economy is not healthy, right? A very few are
healthy. Just like anywhere else in the world, COVID was tough on
Florida, real GDP fell 2.9%. And despite its lax COVID closures
and the stories of mass influx of people, between Q3 and Q4,
the state only grew 3.1%, in comparison to other states with
no income tax like Texas and Tennessee. It's hard to believe that
there's this rise of Florida. Florida has a growing
population. And that's mostly of lower income earning population
that are leaving, you know, the New York area, the New York
metro area because, again, of enormous affordability problems,
you know. While an immense amount of wealth enters Florida
annually, median income in the state is about 13% below the
national average. Most employed Floridians work in construction,
restaurants and food services, and elementary and secondary
schools. Inequality is increasing over time. And the
state spends less on public services like health and
education per capita than any other state in a nation. That
has resulted in social and economic problems like
suppressed low and middle income wages, social fragmentation,
poor health and violence. There's 2, 3, 4 different
Florida's that people live in. There's a tax haven, Florida
where people can lay out on the beaches or sit in their pent
houses. There's the Florida of tourism where people could go to
Disney and then there's a state of farm workers who work from
sun up to sun down, get shuttled from school buses from their
homes, have no protection, usually have no papers. There's
a life of black people who continuously live with no
representation, have the worst jobs in the state. The best
things that you know about Florida on those beautiful
postcards are at the expense of black people of immigrant
people, Haitian folks, African folks, these are the invisible
people who make Florida run. Spending more than a year
working from home has reassured companies that they can cut back
on pricey New York City or San Francisco offices, while
maintaining revenue. And Florida has benefited from that shift.
But for it to become an epicenter, could take time. It
took New York City centuries to build its agglomeration and
economies of scale. It remains to be seen if and how
South Florida can accomplish that. What really excites me
about Miami, is ethos that everybody here is really excited
about, right? pro technology, pro capitalism, pro immigration,
you know, cheap housing, low cost of living, low taxes, being
able to like grow into that I think is really important and
all the early signals to me seem you know, quite positive. But
it'll be interesting to see sort of in September and October you
still seeing this continuous exponential growth. This is all
real. This is not a dipping of the toe in the sand. We know
this because they're talking to local accountants and local
attorneys and the traffic is very high to those offices.
"NEW YORK BAD"
Isn't this what red states want, for the wealthy to move to their states?
No.
Florida looks fun to visit, but I don’t know how people can live in that humid weather
As a native floridian, i can tell you STAY THE FUCK AWAY FROM US. Dont New York my Florida.
I hope so