As the pandemic rages on, many Americans are heading to sunny, warm destinations like Florida to escape harsh winters and the stresses of the pandemic. With that trend, the luxury real estate market has been surging.
According to a report by Realtor.com, home sales priced at $1 million and above in Miami-Dade County alone increased by 46.4% in 2020. Similarly, Palm Beach County saw its high-end home sales rise by 77.7% during the same time period.
One reason for this surge is that people who are used to traveling extensively are now investing in vacation homes or second homes in Florida. According to a survey conducted by Harris Poll, more than a third of Americans who earn $100,000 or more plan to buy a vacation home in the next two to three years.
The pandemic has also led to a shift in priorities, with seclusion and space becoming more essential. Many of Florida’s luxury homes offer large lots, with amenities such as private beaches, tennis courts, and swimming pools. The ability to be able to enjoy these amenities without the crowds found at public facilities is appealing to many buyers.
Another reason for the surge in luxury home sales is the state of Florida’s favorable tax structure. Florida has no state income tax, no estate tax, and no inheritance tax. Many buyers from states with high taxes, such as New York and California, are looking to Florida as a more tax-friendly alternative.
Additionally, with remote work becoming more prevalent, many buyers are no longer limited to living near their offices. This shift allows them to purchase homes in areas that may not have been previously considered.
Despite the pandemic’s impact on the economy, the luxury home market in Florida remains strong. With high net-worth individuals continuing to flock to the state, the future looks bright for sellers and the local economy alike.
Overall, the luxury real estate market in Florida is thriving due to several factors: the desire for sun, sand, and seclusion; the state’s favorable tax structure; and the shift to remote work. With more than a third of Americans looking to buy vacation homes in the next two to three years, Florida’s luxury home sales are likely to continue to soar.