From Fox News:
Is bigger really better? It’s true to Florida buyers. Many wealthy buyers are moving to the Sunshine State for higher ceilings — and a lower tax bracket.
Luxury Florida homes have wealthy Americans making the move from high tax areas like New York, New Jersey and California, cutting their tax bill and increasing the size of their homes. It’s a movement many are calling “tax migration.”
Jay Parker, CEO of Douglas Elliman Florida brokerage, one of the largest residential brokerage firms in Florida and Manhattan, said New Yorkers are the new “foreign” buyers.
“We have really created the perfect storm. The age of our population, the tax benefits of moving to South Florida. Someone that wants lifestyle, amenitization, really an experience in their living environment. Larger units, higher ceiling space,” Parker said.
The Tax Cut and Jobs Act — passed by Congress and signed by the president in December 2017 — capped the federal deduction for property, state and local taxes at $10,000. As a result, high-income earners are fleeing their home states and looking to the Florida real estate market for a better quality of life.
New York Gov. Andrew Cuomo on Monday blamed Trump’s tax law on the number of people leaving the state, saying it had contributed to the state’s deficit.
“People that are moving here, they are moving quickly, they are moving consistently. They are looking for opportunities, they are evaluating the market and I think all of these things combined really are very favorable to us in the state of Florida,” said Parker.
But Parker said it’s not like New York is losing ground to Miami — it’s still the hotting market in the country.
“I still believe New York is still positioned to be the most important real-estate market in the country, if not the globe. It is just an opportunity for us now to expand our luxury market and to become a safe haven,” Parker said.