For Florida real estate, the millionaire migration continues to intensify
Recent data underscores this transformation. During the COVID-19 era, Florida recorded a net gain of 1,786 young households earning $200,000 or more annually in 2022, making it the top destination for affluent Americans aged 26 to 35, according to a SmartAsset study. Over the broader COVID period, the state experienced an estimated net income gain of over $75 billion.
This migration trend has only accelerated in recent years. The latest Henley & Partners 2024 USA Wealth Report confirms that Florida, along with Texas, is attracting a growing share of high-net-worth individuals while strengthening its luxury property markets. Interestingly, despite Texas being a top wealth migration destination itself, it also ranks among the top five states sending residents to Florida.
While several factors contribute to Florida's appeal, its tax policies remain one of its most compelling advantages. The absence of a state income tax offers significant financial savings, particularly for high earners, business owners, and investors seeking relief from the high-tax burdens of states like California, New York, and New Jersey. Additionally, Florida imposes no estate or inheritance taxes, making it a strategic choice for long-term wealth preservation. When combined with the homestead exemption and the lack of a state-level capital gains tax, these incentives create a uniquely favorable financial environment.
Beyond its tax benefits, Florida delivers an enviable lifestyle that continues to attract affluent buyers. According to Sotheby's International Realty's 2025 Luxury Outlook, the trend of millionaires on the move is intensifying, further solidifying Florida's status as a premier destination for the ultra-wealthy.
The effects of wealth attraction are particularly evident along the Gulf Coast, where luxury developments are reaching new heights. Ultra-luxury Gulf-front condominiums now command prices as high as $5,000 per square foot – figures that seemed inconceivable just a few years ago. Such valuations, once exclusive to markets like New York City, Los Angeles, and Miami, underscore the area's growing appeal to an elite class of buyers. This influx of wealth has also fueled the rise of branded residences, a concept previously rare in our markets.
This migration is not just a U.S. trend; it is a global phenomenon. The Henley & Partners Wealth Report estimates that 134,000 high-net-worth individuals relocated worldwide in 2024, surpassing initial projections. Within the U.S., this trend is expected to continue as an estimated $84 trillion in generational wealth transfers from the Silent Generation and Baby Boomers to their children and grandchildren by 2045, according to Investopedia. In response, the luxury market is evolving to align with the preferences and lifestyles of younger generations.
Despite this surge in high-net-worth migration, Florida's total population has not seen a dramatic increase most recently as outward migration has accelerated at a comparable rate. According to Census Bureau, data for the year ending June 30, 2024, Florida grew at twice the national average, yet net migration declined by 90% from its 2022 peak. This slowdown reflects growing affordability challenges, rising insurance costs, and sentiment among some long-term residents that Florida's rapid transformation is altering the state's character. As a result, true population growth remained minimal, with nearly as many residents leaving as arriving.
At present, Florida's overall growth rate is being reshaped by what appears to be an economic shift rather than a population surge. The state is experiencing a reconfiguration of demographics as wealthier individuals replace those leaving due to rising costs. This is perhaps unsurprising, given that median home prices in Florida have risen approximately 75% over the past five years.
While Florida's population dynamics may be shifting, its economic and real estate markets continue to be transformed by an influx of high-net-worth individuals. As luxury migration drives demand for ultra-premium properties and upscale lifestyle offerings, the state's housing market and infrastructure are evolving to cater to an increasingly affluent demographic. Though affordability concerns have prompted some residents to relocate elsewhere, Florida's enduring appeal to the world's wealthiest remains strong.
Whether this trend will redefine the state's long-term identity remains to be seen, but for now, Florida stands as a beacon for those seeking financial advantages, luxury living, and generational wealth preservation.
Budge Huskey is chief executive officer of Premier Sotheby's International Realty.
This article originally appeared on Sarasota Herald-Tribune: BUDGE HUSKEY: What is Florida's attraction for the ultra wealthy?
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