Miami’s ultra-luxury real estate home market continues to outshine and outperform major metropolitan areas.
30 Homes for sale over $40M
For the first time in Miami’s history, there are 30 homes on the market over $40M+ at an average price of $48.7M. 8 homes have traded at average price of $47M. This is unprecedented for the Magic City. With so many industry titans and leaders like Jeff Bezos and Ken Griffin buying in Miami, can we expect more record sales?
As competitive as Elon Musk and Jeff Bezos are, we wonder if Elon Musk is already looking into buying in Miami.
The maximum price on the market is $95,000,000 for 10 room, 25,867 SF home. The average price is $48,703,393 and the median is $43,500,000.
The talent and wealth migration went into overdrive during Covid. While the influx pace may have slowed a bit since the pandemic peak, these figures reflect the continued wealth and talent migration to the city.
According to a recent report by the Post, a total of 160 financial firms on Wall Street have relocated from New York City in recent years. Out of those, 56 have opted to transfer their operations to Florida, resulting in a substantial outflow of $1 trillion in financial assets from Manhattan.
Over the past 180 days, the average selling price of ultra-luxury homes in the prestigious market of trophy residences priced at $30 million or more stands at $47,293,750. These mansions and mega mansions have been trading at an average rate of $4,185 per square foot.
At THE APT TEAM, we are currently collaborating with various executives who are relocating their companies from California. Although these executives, as they themselves put it, "are not the big whales," they are choosing to come to Miami due to the allure of lower taxes, diversity, a favorable business climate, and an entrepreneurial spirit.
Many of these young residents will bring fresh ideas to the city, and some may even consider starting a family if they haven't already. However, finding newly constructed homes within certain price ranges might prove to be a bit challenging as inventory is low and construction cannot keep up with demand.
“A rising tide lifts all boats... Growth of Miami, one of the strongest in the U.S."
During the eMerge Americas conference earlier this year, Eric Schmidt, the former CEO of Google, expressed to Major Francis Suarez his admiration for the abundance of talent in Miami. He highlighted the opportunities available for entrepreneurs in the city to establish a world-class knowledge economy. Schmidt also noted the impressive growth rate in Miami, specifically in real estate jobs, corporate formation, and inbound funding.
According to him, these factors contribute to Miami's status as one of the strongest cities in terms of growth within the United States. In contrast, Schmidt observed that older cities often face challenges due to their lack of commitment to growth. He emphasized the importance of fostering a supportive environment for all businesses to thrive, as a rising tide benefits everyone.
“There is so much talent that is coming through Miami that is available to the entrepreneurs here to build a really world-class knowledge economy.”
“The growth rate in Miami, in terms of real estate jobs, corporate formation, and inbound funding is one of the strongest in all of the United States. That’s extraordinary. “A rising tide lifts all boats, (and) the problem with the older cities is that they seem to have lost their commitment to growth.”
Miami new economic and social powerhouse-landscape shift
About 50,700 Californians became Florida residents from 2021 to 2022, according to data from the Census Bureau's American Community Survey. This trend doesn’t seem to be changing soon.
Pundits contend that we are still in the growth phase of the real estate cycle.
According to the NVCA-PitchBook 2022 Venture Monitor Report, Miami's startups managed to secure $5.5 billion in funding in 2022. This impressive feat occurred despite the overall decrease in venture capital activity across the United States. In terms of national rankings, Miami claimed the eighth spot (these figures do not account for companies based outside of Miami but have founders who are actively raising funds and operating their businesses in the city).
As reported by Barron’s, in a rapidly changing economic landscape, the powerhouses of the nation are shifting from traditional cities to emerging metropolitan areas like Miami. This historic shift is reflected in the fact that, for the first time since the 1990s, a group of six southern states, including Florida, Texas, Georgia, the Carolinas, and Tennessee, now have a greater impact on the national GDP than the Northeast. This trend is significant as it indicates that Americans are spreading out both physically and economically.
This shift was also reported by Bloomberg in the $100 Billion Wealth Migration Tilts US' Economy to the South article. In it, we learn that Southeast is currently experiencing a significant economic shift resulting in a wealth migration worth $100 billion. Additionally, the Southeast has emerged as a hub for job growth, accounting for two-thirds of all job growth since the beginning of 2020.
As this shift continues, it will be interesting to observe how these emerging metropolitan areas capitalize on their newfound economic prowess. The balance of power in the US is undoubtedly changing, with the middle of the country becoming an increasingly important player in shaping the future of the nation's economy.