Why More and More High-Net-Worth Individuals Move to Miami

Why are so Many High Net Worth Individuals (HNWIs) Flocking into Miami?

When the Senate passed the tax bill last December, high-tax cities (New York, Chicago, New Jersey, LA (and the area of Silicon Valley), Baltimore, Washington etc) became even more expensive. That realization has caused many to consider moving from high-tax to lower-tax states. Nearly all states have an income tax, ranging from 1-13%. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming are the exceptions because they do not tax residents’ incomes. Millionaires from high-tax states like New York can save more than $1 million in taxes by moving to Miami and Miami is welcoming them wholeheartedly.

Since the announcement of this new bill Miami has seen a large increase of new residents mainly from New York City, New Jersey, Baltimore and the Sillicon Valley area. 

Moving From NYC to Miami in Numbers – The 2019 Tax Implications

The new tax law limits deductions for state and local taxes, including property tax, to $10,000. Under the new rules, a New Yorker with $10 million in ordinary income and a $10 million home would have saved $1,173,278 in total taxes by relocating to Florida on Jan. 1, 2018, when the law took effect. That’s an increase of $431,682, or 58 percent, from 2017, according to the Tax Institute at H&R Block

“Beyond the tax benefits, luxury home buyers get more bang for their buck in Miami than in New York City.”

– Katie Warren/Business Insider

Why Would You Move to Miami, besides Financial Reasons?

1. The Miami Lifestyle

Imagine you live in one of the world’s most exciting cities and you have to choose an alternative? You most likely prefer another global city that is highly desired by high-net-worth-individuals. Miami is a top rated, world class city with the finest restaurants, events, nightlife, fashion, arts and of course 350+ days of summer. There is no explanation necessary as to why Miami is an exciting city, but people are starting to realize Miami is more than just beaches. It is an important business hub hosting hundreds of regional or global headquarters, it is the link between Latin America and the USA and it’s financial sector is called the “Manhattan of the South”. Miami is booming in many ways!
This is one of the reasons why in the last few years Miami has gained more and more attention from wealthy families as a place for principal residency.

Upscale Fisher Island is seeing an increasing amount of new residents from New York

2. Miami Real Estate Options

Miami is home to some of the world’s most opulent and exclusive real estate options and its prices per SF are still relatively affordable compared to other global cities.  Miami offers many gated communities, waterfront lots, and luxurious sky scrapers with top notch amenities, services and world-class concierge services. Katie Warren from Business Insider recently compared three NYC properties to three Miami properties and found a great difference in general living space, spacious layouts, generous outdoor space, and waterfront views.  It quickly became clear that money buys you a whole different type of luxury: The Miami homes are larger and often have generous private outdoor space, as well as waterfront locations, surrounding greenery, and swimming pools.

3.  The Best Private Schools

Miami offers many A-graded private schools that are also more affordable than NYC’s elite schools. With education levels on a par with NYC, families feel more and more confident to make the move to Miami. Interesting fact is that the influx of affluent out-of-state buyers is creating huge waiting lists at Miami’s most desired private schools.

Palmer Trinity School, an independent college prep Episcopal is seeing a jump in families from New York and New Jersey, while Miami Country Day School is seeing increased interest from families from New York, Boston, Chicago, Los Angeles, and Houston. Gulliver schools, one of Miami’s most sought-after private schools, commented there is a strong interest from families relocating to Miami both from high tax states as well as from around the world. According to the Miami Herald, Avenues, an elite private school that opened in New York City in 2012, is set to open a Miami location. Annual tuition for Avenues is $56,400.

Where to live for a short drive to Miami’s Best Private Schools?

Are you considering a move to Miami? Contact David Siddons today

David Siddons | david@siddonsgroup.com | +1.305.508.0899

David Siddons is a top producing Miami Real Estate Agent with nearly $100M in yearly Sales. He specializes in Luxury Real Estate and (Corporate) Relocations to Miami. He is known as a market analyst and he is the author of several of Miami’s most influential real estate reports and forecasts


These are the most commonly asked Google Real Estate Related questions

1. What are the Current Best New Condos in Miami?

If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023

2. What is the best New Construction Condo in Fort Lauderdale?

In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.

3. How can I compare the new luxury construction Condos to the best existing Luxury Condos in Miami? 

Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!


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David Siddons

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