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Silicon Beach – Miami: The New Hotspot for America's Innovative Minds

June 2, 2021

Though it has been said throughout the past year, it’s no less true today: the housing market in Miami is like nothing I’ve ever seen before. In my 17 years as a top Miami Beach real estate agent, the market conditions continue to amaze. Though Miami has been on an upward trajectory for many years, the pandemic has vastly accelerated it being one of America’s hottest places to move. In Miami, you get the best of both worlds – the tax savings on personal income and capital gains, the spectacular weather, the year-round beaches, and a higher quality of life. I believe that macro forces including companies moving here and educational opportunities ramping up are going to contribute to a very long housing boom. Below, I’ll examine how these forces are taking Miami to the next level, and what’s in store for Magic City.

In Miami Beach, the majority of buyers are coming from California tech, and New York City finance circles. Our buyers are looking for a true turnkey solution, in the form of fully furnished waterfront homes. They’re looking for the best of the best of homes available, and they’re willing to pay a premium for that trophy asset. Buyers are seeking out in-home amenities such as movie theaters, home gyms, yoga studios, outdoor activities, in addition to plenty of outdoor space. We recently purchased a neighboring property for an existing client, and they used the additional land to build a self-contained sports complex with plenty of activities for them and their kids, including plans for a basketball court and paddle-tennis court! He, like so many other buyers in Miami right now, wanted to create self-contained amenities and was willing to go the distance to do it.

 

It’s no wonder why so many businesspeople and celebrities have been moving to Miami in the last year. People are no longer buying second homes in Miami and being here for six months out of the year to take advantage of Florida’s tax benefits; I’ve truly seen clients move their families here to put down roots and immerse themselves in all that Miami has to offer. In fact, year-over-year closed transactions for single family homes in Miami Beach increased a whooping 600+% between April 2020 and April 2021. (see the full TRENDS Market Report here.)

Companies including Goldman Sachs, Blackstone, Nucleus Research, Boston Private, and many more have already moved or expanded to Miami. More will soon follow in their footsteps, and with that movement comes employees who need new, permanent homes. Once top companies have settled here, top young talent will move to Miami (“Silicon Beach”) the same way they flocked to Silicon Valley.

 

With so many fantastic companies moving to Miami, eventually they’re going to need new, young talent to fill top positions. Miami has seen a renaissance in educational opportunities lately, with more private schools for K-12 opening, adding to the already top-rated private schools available. Eventually these schools will feed into the abundance of universities here, and sculpt top talent for the companies with offices in Miami.

The second force that’s contributing to Miami’s raised stature is local government support of the city becoming the next Silicon Valley. Miami Mayor Francis Suarez made national headline with his famous tweet, asking “How can I help?” when a prominent businessman shared an idea to make Miami America’s next tech and innovation hub. Mayor Suarez has been vocal about ensuring businesses do their part to contribute positively to Miami’s greater ecosystem.

 

With all this, Miami has proven and continues to prove that it has the chops to compete with the professional, business-minded cities across the country. Major corporations and top professionals are starting to consider Miami a city of tech and financial-minded professionals, and they want in on the action. I’ve seen “flight capital” coming only to invest and reap tax benefits in years past, and now plenty of my clients are coming to Miami not only to invest in property, but to truly build their lives and put down roots. I do believe that Miami could be the next Silicon Beach, a better version of Silicon Valley.

My phone has been ringing off the hook with 917 (New York) and 310 (California) area codes, and when I see those numbers flash up on my screen, I know I’m getting a call from my next buyer!

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