NYC’s Exodus to Florida: Big businesses, residents fleeing at record levels, despite rosy census data
An in-depth look shows record-breaking departures from the City that Never Sleeps to the Sunshine State — and not just by residents. Business bastions of NYC’s prestige and tax base — including hedge funds and tech firms — are also fleeing the city or being outpaced by growth in Florida.
More than 33,000 New Yorkers Moved to Florida in Just Ten Months
That’s a whopping 32 percent increase from the same period the prior year, when 25,370 made the move. In total, for the 2019-April 2021 period, 104,960 New Yorkers left to Florida.
The 2020 Census: NY Growth is Modest, While Florida Doubles National Average
Recently-released 2020 Census data showed NY city and state growing over the past decade; defying experts’ predictions and spurring applause from publications and electeds.
New York State experienced a modest upswing last decade, up 823,000 people, or 4.2 percent. But, the national gain was 7.4 percent.
Florida, on the other hand, nearly doubled the national growth, with its population growing 14.6 percent from 18.8 million residents in 2010 to 21.5 million in 2020.
Florida’s cities growth out spur NYC
Miami also beat NYC in this regard, with 8.8% growth from 2010 to 2020, compared to 7.7 percent for the Big Apple.
One must also keep in mind that unlike NYC, Florida is not restricted to Miami as the only desired metro area. As the Tampa Bay Times notes, a majority of Florida counties — nearly all of them in the most populous areas of the state with metropolitan cities — saw increases.
Some are returning back to NYC as pandemic resides, but nowhere near the rate of Florida’s growth
Mail forwarding data from USPS suggests Americans are returning to major East Coast cities, Jefferies analysts said in a recent note. Manhattan saw 4.3% of households move out during the pandemic – but only regained 0.31% of occupancy through May and June.
On the other hand, four of the top five fastest-growing cities were in the major Florida hubs of Orlando, Miami, Jacksonville, and Tampa, according to the report.
The Ultra-Rich Escaping NY’s “Tax Hell” for a Brighter Future in Florida
New York City’s millionaires pay the highest personal income taxes in the nation – 14.8% for the highest earners with city and state taxes. On the polar opposite, Florida charges zero personal income tax. And, according to the Orlando Sentinel, nearly all Florida businesses avoid the state’s corporate income tax, with lawmakers turning a blind eye.
Jimmy Patronis, Florida’s CFO, told Fox Business in May that about 900 people a day were moving to the state, citing the “tax hell” of New York as a prime example.
“Let’s just talk about the empty nesters from New York, or the empty nesters from New Jersey,” Patronis said. “They then decide to leave the tax hell that those states are in and move to the state of Florida.”
Partnership for New York City says Businesses Setting Up Offices Outside the City Because of Tax Increase
The Partnership of NYC represents many of the city’s largest businesses, leaders, and employers. The partnership’s executive committee includes JPMorgan CEO Jamie Dimon, BlackRock CEO Larry Fink, Citigroup CEO Jane Fraser and Blackstone CEO Steve Schwarzman.
Kathryn Wylde, president and CEO of the Partnership for New York City, told CNBC “that business leaders are hearing from employees and potential recruits about the need to set up offices in states outside of New York in order for them to avoid paying higher tax rates.”
Florida is actively courting New Yorkers to Move
“In contrast, governors and mayors in Florida, Texas, North Carolina and Maryland, to name just a few, have established aggressive programs to recruit talent and attract jobs from New York to their lower cost, lower taxed regions,” wrote The Partnership of NYC to the State Legislature.
“Florida’s Chief Financial Officer sent a letter to the New York Stock Exchange outlining the advantages of moving to the ‘Sunshine State.’ Miami is distributing promotional material comparing its quality-of-life metrics and taxes to New York City,” the letter continued.
Hedge Funds Are Ready to Get Out, While Florida Cities Beat NYC for Fastest Tech Growth
NYC has struggled to retain the world’s richest firms with its high taxes, but with the new tax hikes, some of Wall Street’s biggest names, including Goldman Sachs, Apollo Global Management, Point 72 Asset Management, and others are consider greener pastures, especially Florida, sources from Bloomberg say.
When it comes to the explosive tech industry, NYC, a longstanding innovation hub, has competition with Florida, Forbes reports, as “a new Great Migration” has caused thousands of startups (and billions in capital) to flow to Miami and Tampa, which are now ranked with the Big Apple as the top five emerging tech cities.
Does Census give you the entire picture? NYC’s exodus likely continued afterwards
One must keep in mind that the Census was conducted between April 1 – October 2020, and may not give a full picture of NYC’s exodus due to Covid, ABC 7 NY argues.
Rising Prices Likely Won’t Help, Either
Although NYC real estate prices plummeted during the pandemic, they have skyrocketed since. While it may be a boon for real estate firms and the wealthy willing to front the cost, many report that Florida’s cheaper housing and cost of living are too enticing to stay.
While NYC has always been expensive, this month, the Big Apple overtook reigning champ San Francisco as the most expensive city for rentals – the first time since 2104 – a report by apartment listing site Zumper found.
And, this month, New York ranked the #1 least affordable city in the U.S., according to the RealtyHop Housing Affordability Index.
While there is much to be celebrated about NYC defying the odds of shrinking, Florida is gaining ground. And with Florida’s warm weather, lower cost-of-living, and drastically lower taxes, NYC will have to fight hard in this post-pandemic recovery to keep the mantle as the nation’s business capitol.
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