The capital of capital; Wealth migration fuels South Florida's economic growth
South Florida has always been a vacation paradise, but recent years have seen it transform into a magnet for wealth.
Fueled by the COVID-19 pandemic, Florida has become the nation's fastest-growing state. This growth is largely driven by an influx of high-net-worth individuals and companies. South Florida, in particular, has become a haven for the wealthy, boasting the highest concentration of billionaires (over 40) in the Sunshine State, according to Forbes.
Miami Mayor Francis Suarez sees the trend as a game-changer, calling the city the "capital of capital" and likening it to financial powerhouses like Singapore and Switzerland.
Several factors are drawing high-income earners to the region: year-round sunshine, the absence of a state income tax, and a business-friendly climate. This migration boom resulted in Florida adding over 1.4 million new residents between 2020 and 2022, with the largest influx coming from Northeastern states like New York, New Jersey, and Pennsylvania (over 140,000 from New York alone).
The influx of wealth is further evidenced by a net gain of over $75 billion in Florida during the pandemic, with Palm Beach and Miami-Dade counties leading the pack (over $12 billion and $9 billion, respectively).
The arrival of billionaires like Jeff Bezos, Ken Griffin, and Carl Icahn has only bolstered South Florida's reputation as a burgeoning wealth center. This influx of money and residents has had a significant impact:
- Soaring Home Values: Median household incomes in the top 25 wealthiest ZIP codes have jumped over 16%, and median home values in affluent areas have climbed over 30%.
- Increased Consumer Spending: The influx of new residents has fueled consumer spending, benefiting local businesses and the economy.
- Booming Public Companies: South Florida's top 50 public companies have seen a healthy revenue increase, generating over $318 billion in 2023 compared to $234 billion in 2019.
Ken Griffin, founder of Citadel, praises Florida's leadership for prioritizing safe streets, good schools, and good jobs. He envisions a future where Miami, as "Wall Street South," could rival New York City as the nation's preeminent financial center.