Florida is actively courting New York City business leaders and wealthy residents, capitalizing on the recent Democratic primary victory of Zohran Mamdani. His progressive platform, which includes proposals for higher taxes on corporations and the wealthy, rent freezes, and government-run services, has prompted concerns among some New York business and real estate communities, leading them to consider relocation to the Sunshine State.
The Mamdani Effect on Real Estate
Zohran Mamdani’s primary win has created a ripple effect in the real estate markets of both New York and Florida. South Florida real estate developers are reporting a significant surge in inquiries from New York-based prospective buyers and investors.
- Increased Inquiries: Developers like Isaac Toledano of BH Group and Peggy Olin of OneWorld Properties have noted a noticeable uptick in interest and scheduled appointments from NYC-area clients since Mamdani’s victory.
- Developer Relocation: There’s an expectation that New York developers might also consider relocating, especially if Mamdani’s proposed rent freeze on rent-stabilized apartments is implemented.
- Proactive Planning: While some New Yorkers are not hastily uprooting, many are proactively planning and evaluating how Mamdani’s policies might impact their businesses and lifestyles.
Florida’s Strategic Lure
Florida officials and business leaders are openly welcoming the potential influx of New York capital and talent. They are actively promoting the state’s business-friendly environment and contrasting it with New York’s evolving political landscape.
- Official Endorsements: Florida Governor Ron DeSantis and Miami Mayor Philip Levine have publicly commented on the benefits Mamdani’s victory could bring to Florida.
- Direct Appeals: The Florida Council of 100, a group of state business leaders, has sent a letter to New York CEOs, urging them to consider relocating their operations to Florida, emphasizing the state’s supportive government and lack of income tax.
- "Wall Street South": Boca Raton, in particular, is gaining recognition as "Wall Street South" due to the increasing number of major banking and financial services firms and high-net-worth individuals establishing a presence there.
Long-Term Migration Trends
The current interest in Florida is not an isolated event but rather an acceleration of an existing trend. Factors such as New York City’s past challenges with crime, congestion pricing, and high taxes have already driven some wealthy residents and businesses to seek alternatives.
- Historical Context: The movement of New York City high-net-worth individuals to Florida has been ongoing, with the COVID-19 pandemic further accelerating this migration due to Florida’s more relaxed policies.
- No Income Tax: Florida’s lack of a state income tax and its ban on rent regulation offer a sense of stability and profitability that some investors feel is diminishing in New York.
- Corporate Relocation: Corporate site selection firms are experiencing unprecedented levels of interest from companies looking to relocate out of New York City, driven by the prospect of a socialist mayor.
While some companies and individuals may remain in New York due to deep-seated ties, the current political climate is expected to lead to a significant shift of corporate investment and job creation towards Florida.
Sources
- Mamdani critics might leave New York for Florida, real estate leaders say, Axios.
- Florida Trying To Lure NYC Business Leaders After Mamdani’s Victory, Newsweek.
- Real estate expert expects ‘more capital’ to enter South Florida if Mamdani becomes NYC mayor, Fox Business.