Tuesday, February 5, 2019
Data suggests that a growing number of wealthy citizens are moving from high-tax states to Florida and other low-tax states in response to the change in tax laws last year. New York Governor Andrew Cuomo is one of many public officials that are blaming losses in state taxes to the federal deduction for state and local taxes now being capped at $10,000.
This means that though Miami has always been popular because of its beaches and warm weather, now it is drawing even more new buyers. The city is experiencing more activity than usual from buyers living in northern, high-tax states. Jonathan Miller, a real estate appraiser who publishes quarterly reports for real-estate company Douglas Elliman said, “If they were already on the fence, I think the tax law has changed the calculus for some.”
While New York City's condo market is tumbling, Miami's is steadily increasing. The media price in Miami increased to $235,000 in the fourth quarter of 2018, a 2% rise from a year earlier. On the flip side, Manhattan co-op and condo sales last year were down 12% from 2017 to their lowest level since 2009.
See Laura Kusisto & Arian Campo-Flores, Out-of-State Buyers Flock to Miami, MSN.com, February 5, 2019.
Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention.