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Many of the world’s richest people now own property in Miami, an American city. Billionaire homeowners include Meta’s Mark Zuckerberg, Amazon’s Jeff Bezos and Google’s Larry Page.
These new Miami residents are part of a larger trend of ultra-wealthy people moving there. according to the new York TimesNot a single home sold for $50 million in Miami in 2020. By 2025, the city is projected to lead the nation in home sales by more than $50 million, surpassing traditionally exclusive markets like New York and Los Angeles.
Grant Cardone, a private equity fund manager and real estate investor who moved to South Florida from Southern California, sees Miami’s rise as part of a larger, long-term shift in where the seriously wealthy want to live. That is why he said it is becoming one of the most important destinations for the ultra-rich.
Miami Rebranded From Party City to Global Wealth Hub
Although Miami is now seen as a playground for the rich and famous, it did not always have such a reputation.
“There’s almost 30 years of history here — one is ‘Miami Vice,'” said Cardone, who will host it. 10X Real Estate Summit in Fort Lauderdale, Florida, told GOBankingRates. “That show is worth billions of dollars to this city. It put Miami on the map, but it wasn’t good for Miami.”
The show depicted a city filled with drugs, crime and excess, but in recent years it has been able to change that image. Decades of growth have established Miami as a sophisticated, global destination for established wealth.
“He’s been cleared; he’s gone now,” Cardone said. “Nobody thinks of Miami as ‘Miami Vice’ anymore.”
Many wealthy buyers are “discovering” Miami for the first time as a high-end market rather than a party city.
“They’re seeing blue water,” Cardone said. “They’re looking at hot weather.”
Pandemic pushes rich to low-tax, pro-business cities
While change was already underway in Miami, COVID-19 accelerated the migration of high-net-worth individuals.
“COVID gave Miami a big boom,” Cardone said.
As offices moved farther apart and mobility increased, affluent Americans reevaluated where they wanted to live — and where they wanted to base their capital. Miami attracted this population because it had low regulations, a business-friendly environment, and no state income taxes.
“It was like, ‘Oh! I don’t have regulations, it’s business friendly, there’s no taxes and it’s warm weather,'” Cardone said.
Different levels of wealth are settling in South Florida
Miami is part of a larger trend of wealthy people moving around the Florida coast, though Cardone pointed out that different segments of the wealth have gravitated to different areas.
“The older, wealthier people are in Palm Beach,” he said. “The young rich are in Fort Lauderdale. The ultra-rich are in South Miami because they want their yachts there. This entire coastline is being filled with different levels of wealth.”
Cardone said that rich people follow other rich people: “If you’re rich, you want to follow the rich, and if you’re ultra-rich, you want to follow the ultra-rich.”
Tech billionaires and financial power players are fueling Miami’s rise
In addition to tech billionaires like Zuckerberg, Bezos and Page, Miami is also attracting financial giants. Hedge fund manager Nick Mounis also recently relocated to the city, The New York Times reports.
“You have technology coming in, banking coming in,” Cardone said. “It’s nice and cool now. You’re getting the benefit of Los Angeles dumping out, San Francisco dumping out, New York, Boston — and so all the cool people want to go to cool places.”
As high-cost cities are losing residents, Miami is absorbing cultural and financial progress.
Party tourism has been replaced by ultra-wealthy residents
After “Miami Vice” lost its reputation, Miami became a hot spot for spring break.
“Spring break was a problem here,” Cardone said. “Well, spring breakers are being replaced by super-rich people.”
High net worth individuals with permanent capital are replacing short-term visitors. This change further stabilizes real estate values and the city’s long-term appeal.
Miami is the epicenter of a multi-decade wealth cycle, not a fad
Cardone believes that the ultra-wealthy will continue to flock to Miami and stay for decades to come.
“These cycles don’t last two or three years – they last 30 and 40 years,” he said. “It’s a three- or four-decade cycle.”
In his view, Miami is positioning itself to be similar to long-established luxury enclaves abroad.
“St. Bart’s became hot because some rich people went to St. Bart’s,” he said. “When the south of France got warmer, that cycle took five decades.”
Miami checks every box that today’s ultra-wealthy care about: tax advantages, desirable lifestyle, social status, and long-term stability. What started as a pandemic-era shift has turned into a continued migration of serious money.