According to Redfin’s latest migration analysis, which examines nationwide housing trends, the amount of homebuyers looking to relocate intensified during the global COVID-19 pandemic and has remained strong for the better part of the past two years. Individuals and families alike are abandoning high-cost metropolitan areas such as Los Angeles and New York and flocking to more affordable cities such as Miami, Phoenix, and Las Vegas. Miami, in particular, was ranked as the #1 city that drew the highest inflow of residents. In this article, we take a look at why that is and examine the trends of where these new Miami residents are choosing to live.
Miami has long been known for its sun, culture, and beaches - but in recent decades it has experienced a business and commerce renaissance that has placed it firmly in the same conversation as some of its more established counterparts across the country.
“It is home to a booming downtown, serves as an unparalleled gateway to Latin America, hosts a world-famous arts and cultural scene and sports the best business-friendly environment in the U.S.” - South Florida Agent Magazine
Pro-business structure with a diversified economy
Businesses of all industries and growth stages, ranging from established investment firms to tech start-ups and restaurant concepts, have committed to expand or completely relocate to Miami. The migration is particularly from major global business hubs like New York City, Los Angeles, and the Bay Area. These companies are finding a vibrant cultural and economic community, diverse local talent, and an exceptional quality of life for their team. The pandemic sped up this migration. Just in the past months, Goldman Sachs Group Inc, The Blackstone Group and Peter Thiel’s Founders Fund have announced plans to relocate their offices to South Florida.
Along with the significant pro-business legislation Miami has instituted in recent years, it has significantly elevated its arts and cultural institutions, improved its educational offerings and upgraded its airports, highways and schools. Miami’s infrastructure has improved significantly in the past two decades, making it an appealing city for modern day professionals and entrepreneurs.
Top Tier Talent
Aside from businesses, top-tier talent is moving to Miami too. Major talent from Silicon Valley, specifically the real estate and the consumer industry, is pouring into Miami at a record rate.
Many top CEOs are relocating to the Miami area per a report released by Condo Black Book. Keith Rabois of Founders Fund, Shutterstock founder Jon Oringer, Shervin Pishevar of Hyperloop One, Harry Hurst of Pipe, Alex Taub of Upstream, Alexandra Wilkis Wilson of GlamSquad and Fitz, plus venture capitalist David Blumberg of Blumberg Capital are just some of the intellectual capital that is also moving to the Miami area.
Here are some other reasons why businesses and top-tier talent are relocating to Miami:
As can be expected, the most popular neighborhoods seeing the most influx are Downtown (16.8%) and Brickell (12.9%), the two neighborhoods closest to the economic and business centers of the city. From there, we see a fairly even distribution across a variety of neighborhoods primarily driven by lifestyle and family needs. Our blog post on our top four areas to watch in Miami goes into a bit of detail on some of these neighborhoods and their draws for those who are relocating to them.
Stats
Areas such as Wynwood (8.9%) and Design District (5.0%) are becoming home to younger creatives looking to make their mark on the culture and future of the city. Areas such as Coconut Grove (8.9%) and Coral Gables (7.9%) are seeing an influx of families. South Beach (5.0%) remains a draw for those who love the beach lifestyle and vibrant nightlife.
These Miami moving trends don’t show any signs of slowing down, even as the housing market begins to normalize after being especially hot in the first half of 2022.
While the global pandemic has impacted the reliability of historical trends and data in predicting what the near, or even far, future may look like for the city of Miami and its surrounding areas, we believe a few safe assumptions can be made about migration trends and how that will impact the city’s development.
The continued influx will further increase the need for housing, office space, and services in the Downtown area, and it’s likely over the next decade we’ll see a revitalization of Miami’s downtown area to be more comparable to its more chic Brickell counterpart. This is already underway, with significant committed investment and planning for multiple areas of Downtown, specifically around the area of the court house.
Areas just north of Downtown, such as Wynwood, Midtown, and Design District, will continue their rise as creative hubs within the city. Their “rougher” edges will continue to be smoothed out as investment pours in to service the new contingent of creatives with New York and California tastes, and those new creatives will leave their mark on the gastronomy, art, culture, and nightlife scenes of those neighborhoods.
As the demand continues to outpace housing supply, we may see legislation geared toward creating a favorable environment for turnover of livable housing as a means to increase supply and improve the affordability of the city, which is currently ranked the least affordable housing market in the nation according to RealtyHop, per a recent article by TheRealDeal.
Following its accelerated rise in the wake of the COVID-19 pandemic, the future of Miami is bright. We’re looking forward to the changes this influx of new Floridians will bring, and remain prepared to meet the needs of those looking to invest in real estate here in the Sunshine State.