Miami a Popular Relocation Destination
Persistently high interest rates and ongoing inflationary woes have continued to impact the growth of the real estate sector in the US over the past two years. Despite this fact, recent data indicates that record numbers of Americans are considering relocating. Ironically, this is partially due to the high cost of living in many American urban centers, which is the result of the aforementioned inflation issues. Other factors that have impacted the uptick in relocation include the new remote work paradigm and a desire to prioritize a more appealing lifestyle—both which can be at least partially attributed to the COVID-19 pandemic.
Pre-COVID, approximately 20 percent of Americans were looking into relocating. Over the past year, however, that number has increased to 23 percent. This represents more than a 10 percent increase in the total number of people who are considering moving and creates a situation where nearly a fourth of all Americans are looking to relocate.
Interestingly, while the number of people who are considering moving is at an all-time high, the number of people who are actually doing so has been dropping over the past few years, largely due to sky-high home prices, elevated interest rates on mortgages, and a relative lack of inventory available. Still, that doesn’t keep people from dreaming—and more than anywhere else, Miami, Florida, is the focus of those dreams.
Miami Remains a Leading Destination for Americans
Recent research indicates that Florida remains a popular destination for Americans, and Miami tops the list of popular cities to move to (both in the state and on a national level). The city boasts a number of benefits and attractions that are drawing Americans from other cities, including factors related to lifestyle and work opportunities.
The aviation, finance, and tourism industries are all booming in Miami, as are the technology, health care, and trading sectors. The influx of businesses—and by extension, jobs—in the greater Miami area represents a good opportunity for career advancement or transition, leading many professionals to consider moving to the area from regional centers such as New York City and Boston, as well as West Coast hubs such as San Francisco.
Comfortable and Temperate Climate
When it comes to lifestyle, Miami has much to offer, ranging from a comfortable, temperate climate to beach access and a thriving nightlife scene. The city boasts 200 days of sunshine per year, as well as a wide variety of water-based sports, such as surfing, sailing, paddling, and diving. Proximity to the Everglades is an added bonus, both for those who enjoy exploring the natural world and those who cater to visiting tourists.
Miami also benefits from the fact that Florida has no state income tax, which can result in considerable tax savings for residents. Particularly now that many businesses are offering employees at least part-time remote work, the ability to live in a state without income tax represents a considerable opportunity to maintain one’s career and standard of living while saving money that would normally be spent on taxes.
Finally, Miami is a multicultural melting pot, making it a colorful, diverse place to live. This is a bonus for those who are looking for a bit more spice in their daily life, as well as for people who have relocated from out of the country and prefer to have a local community that shares their culture, beliefs, and values.
International Migration Helps Maintain Miami’s Popularity
Since the COVID-19 pandemic, Miami has seen a notable increase in international real estate buyers, particularly from countries in South and Central America. The city’s proximity to these regions, as well as the presence of numerous local Latin American communities with a rich cultural heritage and a shared common language make Miami an attractive destination for those looking to relocate to the US. Colombia, Venezuela, Mexico, Brazil, and Argentina all top the list of Latin American countries from which people consider moving to Miami, along with Canada, the UK, China, the Philippines, Spain, and India.
Florida remains the most popular destination in the US for expatriates, with Miami the state’s most popular city for international buyers to move to. Interestingly, 42 percent of international real estate buyers in Miami make their purchases completely in cash, indicating that the city is the beneficiary of a significant wealth migration. That being said, the impact of new laws restricting the purchase of agricultural land and property near military installations and other critical infrastructure by investors from China, North Korea, Cuba, Iran, Russia, and Syria remains to be seen (these laws are currently being challenged on constitutional/discriminatory bases).
Conclusion
Whether they are coming from other US cities or overseas countries, it is clear that relocating families are currently focused on the Miami area. The local real estate market remains elevated relative to the rest of the state and country, despite the continued issue of high interest rates. As the city continues to grow and develop, there is every indication that this will continue to be the case, and Miami real estate will likely remain an attractive investment with a large potential upside.
