Is Florida Just for Rich People Now?
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Why has Florida historically been an affordable state?
For generations, people have been moving to Florida, the Sunshine State. It's been a magnet for people for decades. That's our colleague Arion Campo-Flores, who lives in Miami.
Obviously a lot of retirees have, you know, dreamed of having a little, you know, bungalow on the beach and spending their golden years, you know, fishing and hanging out near the water.
It's not just retirees, though. Florida has drawn people from all walks of life. And a big reason is that the state has historically been very affordable.
It has drawn people in other age groups, people who are blue-collar workers, who are nurses, who are teachers, cops and firefighters. You know, they could find a place to maybe start a new chapter in their lives and live in a new development.
As a result, Florida's population only seemed to move in one direction.
What recent changes have affected Florida's population growth?
Up. But in the past few years, something has changed. That population growth has slowed dramatically. And the only people who seem to be moving to Florida these days are rich.
That appeal that it has long had and that accessibility that it has long had for people around the country who are more maybe middle income or even lower income has really faded.
Seems like that Florida dream is still alive, but only if you have enough money.
Yeah, that's a good way to put it. I think Florida really illustrates national trends. It's sort of like you see it in an extreme version here. You know, greater population of millionaires, greater influx of wealthy people, greater array of services aimed at the rich, and yet a real significant squeeze of working class and middle class households.
Welcome to The Journal, our show about money, business, and power. I'm Ryan Knudson. It's Wednesday, May 27th. Coming up on the show, the affordability crisis in Florida.
How are wealthy newcomers impacting Florida's economy?
The population of Florida has grown steadily for years. And during the pandemic, it drew even more people, especially wealthier ones.
The state was a big draw for people from around the country who wanted to work remotely and be in a place that had fewer restrictions. And so that really supercharged that influx of people, many of whom were increasingly higher income.
Florida is also one of the few states that doesn't have an income tax, which is appealing to those looking to get away from higher tax states. You have wealthy people who have arrived, and then you have uber-wealthy people who have arrived.
We've seen billionaires making news with buying these, like, you know, vast estates and compounds.
Why is it so expensive to go out in Miami? Well, a new report shows that our city just took the spot for the highest concentration of millionaires in the United States.
Ken Griffin's big announcement today. He's moving his hedge fund Citadel to South Florida.
Mark Zuckerberg has reportedly bought a mansion in Florida with his wife Priscilla. The property is part of a gated community on a small island in Miami that's commonly referred to as Billionaire Bunker.
So there's been an influx of all these wealthier people that have moved to the state. Has that brought any benefits?
What challenges are lower- and middle-income residents facing in Florida?
On the stimulative side, it is generating demand for high-end construction. It's generating jobs. It's generating service sector employment because there's a lot of restaurants and services that cater to the wealthy. It's also boosted the tax coffers because even though there's no state income tax, there are property taxes. So there are positive economic benefits benefits to this influx of wealth.
But this influx of wealthy people to Florida has also had an unintended consequence. It's made the state more expensive. And that's driving out lower- and middle-income residents.
So the homes get pricier, neighborhoods get gentrified, and so it squeezes people who are on the lower rungs of the economic ladder. And You know, Florida is not a place that is known for generating an abundance of really high paying jobs. And so if those wages are not keeping up with higher rents and higher housing prices, it's forcing a lot of people to leave.
This is a dumb question, but I'm not sure I fully understand why wealthy people moving somewhere would result in costs going up for everybody.
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Chapters
8 chapters
1
Why has Florida historically been an affordable state?
0:05–1:05
2
What recent changes have affected Florida's population growth?
1:05–2:35
3
How are wealthy newcomers impacting Florida's economy?
2:35–3:57
4
What challenges are lower- and middle-income residents facing in Florida?
3:57–5:31
5
How does the influx of wealth affect housing prices in Florida?
5:31–7:22
6
What solutions does Senator Rick Scott propose for Florida's affordability crisis?
7:22–8:59
7
What are the implications of the proposed housing policies?
8:59–10:45
8
How does Florida's situation reflect broader economic trends in America?
10:45–18:13