Ryan Shea, Managing Partner at PMG, and Daniel Naftali, EVP of Naftali Group, recently shared insights with FOX News Digital about the growing corporate relocation to South Florida. They believe that despite recent economic data suggesting South Florida is losing its cost advantage over New York, the region still holds substantial long-term value.
Developers assert that, after years of undervalued real estate, Miami is enjoying a resurgence. Naftali noted, “Miami has rightfully established itself as among the world’s leading cities. As people have started settling here, it’s become a permanent destination. Yes, prices have gone up, but with world-class dining, incredible cultural venues, and vibrant entertainment options, it’s comparable to major cities globally.” He emphasized how these developments have made Miami more attractive.
Shea added, “You can compare Miami’s prices to those in New York, London, and Los Angeles, and frankly, it’s surprising how affordable it remains here.” He also acknowledged that while the price differences are shifting, it doesn’t paint the complete picture. “Actually, many businesses, not just individuals, are relocating here, and although those high-profile sales and deals get attention, they don’t reflect the overall value that Miami still offers,” he remarked. “It remains a bargain, I believe.”
A recent report indicated that the total living costs in the Miami, Fort Lauderdale, and West Palm Beach areas have surpassed those in New York City. Furthermore, housing prices in South Florida have risen 79% since the pandemic, with homeowner insurance costs significantly higher than those in New York.
Naftali argues that buyers are becoming less sensitive to the costs per square foot, showing that they’re prioritizing lifestyle choices and quality over price. “People are willing to pay for the experience they receive,” he explained.
While homebuyer costs are rising, developers in Florida still face national challenges around borrowing and insurance. However, Shea pointed out that constructing high-rises in Florida remains considerably cheaper than in New York, attributing this to various logistical benefits.
“The reality is, construction costs here are significantly less. And the financing remains accessible, making it affordable to build in Florida,” he stated. He also emphasized that South Florida’s real estate market is active and thriving, indicating a positive trend for the future.
Florida distinguishes itself as one of the few states without a personal income tax, and upper-income earners in NYC are facing hefty local and state taxes. Despite soaring property taxes in Miami, voters are considering measures to ease some of that burden. Naftali noted that tax advantages certainly attract luxury buyers, even though many own properties in both locations.
“The calculations are straightforward,” Shea asserted, explaining that without the burden of state income tax, Florida offers a clear financial incentive.
Shea emphasized that the shift in real estate is less about rising taxes and more about increasing property values, asserting that South Florida remains a prime location for growth. Developers believe that even with the changing dynamics of income and housing costs, the appeal of the region will continue to draw in both residents and businesses.
According to census data, the median household income in the Miami area is slightly less than the national average. Yet, as major employers consider relocating their headquarters to South Florida, the landscape is evolving. Shea remarked, “We’ve reached a point where not just individuals, but companies are deciding to move to Miami, establishing a permanent presence here.”
Looking ahead, both Naftali and Shea believe that Miami’s growth isn’t merely a seasonal occurrence but part of a larger trend. Naftali concluded that investing in South Florida offers a promising opportunity, citing that the quality of life and vibrant culture are significant advantages that go beyond financial considerations.
