It is no secret that many New Yorkers have fled The Big Apple this year. In addition, many New York-based companies have also decided to move their headquarters due to the pandemic and a surge in violent crime. One South Florida Mayor has been focused on recruiting many of the large financial companies to The Sunshine State. Mayor Francis X. Suarez says that he has been trying to coax huge NYC financial firms to relocate to Miami, FL. According to Suarez, low tax rates and high levels of safety are fueling the moves to Florida. (Not to mention, the warm tropical climate and beautiful beaches do not hurt either…)
The migration of New Yorkers to South Florida is certainly not anything new. On the residential side, we have seen a steady flow of New Yorkers relocating to South Florida for many years now. In particular, we began to see an exodus from New York with the introduction of the “SALT Deduction”.
The federal tax reform law passed on Dec. 22, 2017 established a new limit on the amount of state and local taxes (SALT) that can be deducted on a federal income tax return. Beginning in 2018, the itemized deduction for state and local taxes paid were capped at $10,000 per return for single filers, head of household filers, and married taxpayers filing jointly. The cap is $5,000 for married taxpayers filing separately.
Success on the recruiting trail
According to Mayor Suarez, he has already seen some incredible success with recruiting financial firms to South Florida. Some of these successes include:
- Blackstone has announced that it is going to open an office in Miami, FL.
- Earlier this month, Goldman Sachs Group announced it was considering moving its asset management division to South Florida.
- Just this week, Jamie Dimon (CEO of JP Morgan Chase) announced that he was open to moving the $2.6 trillion company’s headquarters down south to Miami, FL.
The potential relocation of these large financial firms to The Sunshine State would certainly have a positive impact on the real estate market. With approximately 1,000 people moving into the state of Florida each day, we are already seeing sustained demand for housing. If some of these large financial firms do indeed move their headquarters to South Florida, we should see an even stronger luxury real estate market. If you are considering a luxury home purchase in South Florida, we can help. With agents across Palm Beach, Broward, & Dade counties, Live South Florida Realty, Inc. has you covered!