Wealthy New Yorkers Eye Miami Amid Election Concerns
A significant number of affluent New Yorkers are reportedly looking to relocate south, spurred by the recent election of Mayor Zoran Mamdani. Real estate agents in Miami have noted a striking 166% increase in interest regarding high-end properties, particularly in popular South Beach areas.
Agents showcasing waterfront condos along Miami’s Billionaire’s Beach, positioned along Collins Avenue from 14th to 21st streets, are optimistic about the so-called “Mamdani effect,” which has ramped up inquiries for luxury real estate.
“Once it became clear that Mamdani would emerge victorious, the phones started buzzing,” shared Pietro Belmonte, executive vice president at Douglas Elliman.
Douglas Elliman is currently promoting the Ritz-Carlton Residences in Miami Beach, where single-bedroom units of 1,200 square feet begin at approximately $8.6 million.
In addition, larger units, spanning three to five bedrooms on upper floors, are priced anywhere from $10.5 million to over $22 million. Meanwhile, lavish penthouses featuring private rooftop pools can be sold for between $55 million and $69 million.
Belmonte and other agents have termed the “Mamdani effect” as a rapid surge in interest and sales of upscale residences by New Yorkers keen to leave the city before Mamdani officially takes office on January 1st.
Belmonte’s firm has recorded a 166% spike in inquiries from New York clients eager to acquire oceanfront condos at the Ritz-Carlton Residences.
Michael Patrizio, managing director at Mast Capital, the developer behind Perigon—an upcoming development of 73 luxury houses—has echoed this sentiment.
“The activity from ultra-high-net-worth individuals regarding Perigon is astonishing,” Patrizio remarked.
Patrizio noted that they are banking on the influx of New Yorkers with starting prices at Perigon beginning at $12.5 million for two-bedroom units, while some four-bedroom condos can reach $70 million.
“New York has always been a key market for South Florida, especially Miami and Miami Beach. Many New Yorkers seem to feel a connection to Miami,” he explained.
His company is also marketing unoccupied units in the Cipriani Building, which will be the tallest residential tower in Miami.
Patrizio mentioned that wealthy New Yorkers are now eyeing these properties, with entry-level one-bedroom apartments available for just under $2 million.
“We’ve seen a remarkable uptick in inquiries,” he noted. “The day after Mamdani won the primary, I had a New York buyer who hesitated but ultimately made a decision. The election week reflected the same trend—those who were uncertain moved forward. It’s clear that the election played a pivotal role.”
Mamdani proposes to raise New York City’s top income tax rate for individuals earning over $1 million annually from 3.9% to 5.9%, bringing the combined city and state rate close to 17%, the highest in the country.
He also aims to increase the corporate tax rate to 11.5%, roughly doubling the current rate of 4.875% to 7.25%.
This shift would mainly impact around 34,000 high-income residences and large corporations based in the city.
An additional wave of wealthy New Yorkers, many of whom had already left during the pandemic, could significantly affect the economy.
Existing high earners in New York contribute a sizable chunk of the city’s tax revenue, with the top 1% covering nearly 48% of all personal income taxes. In 2022, they contributed around $34 billion in combined taxes.
The proportion of millionaires residing in New York has also declined, dropping from 6.5% in 2010 to 4.2% in 2022. Analysts estimate that this demographic shift cost the city approximately $2.5 billion in tax revenue last year.
However, the trend of New Yorkers migrating to Florida had begun well before Mamdani’s election. Data reveals that over 72,000 New Yorkers relocated to Florida in 2023, with nearly $9.5 billion in household income moving from New York to Southeast Florida in 2021.
Counties like Manhattan, Nassau, Suffolk, Brooklyn, and Queens lead the charge in this migration.
