The record-setting relocation trends that have come from the pandemic have been making headlines for the last two years, but as more and more data is gathered, it is apparent that Florida has been by far the most preferred destination for all movers and especially those in high net worth brackets.
In a recent SmartAsset study, trends revealed that Florida has seen the most migration of high-earning residents in the entire nation. The effect is significant and not only because of the change in population numbers. There are significant tax impacts for state and local revenues, even with Florida's income-tax exemption. Consumer spending and sales tax are highly influenced by the increasing number of residents, and those are sources directly tied to municipal reinvestment and public spending capacity. And, of course, the more residents that move into any community, the more demand there is for housing.
With the influx of high-earning and high net worth residents to Florida, there is sustained pressure on the housing market because buyers in these brackets are less price sensitive and less sensitive to interest rate fluctuations than entry- and mid-level purchasers. There is a net long-term effect on the type of housing that is built to suit affluent buyers, a trend that's apparent in Sarasota's booming luxury new construction market.
The LRM Group is proud to share not only real estate expertise for Sarasota and the surrounding areas, but to offer our decades of combined experience in financial markets and real estate trends so that each one of our clients receives the best information in considering a transaction. If you've got questions about current market trends, please reach out to request a private consultation at [email protected].