The COVID-19 pandemic has led to significant changes in the economic and political landscape of the United States. One such shift has been the movement of wealthy Americans from traditionally affluent regions like California and New York to states like Florida and Texas. This trend has led to a change in the demographics of the country’s priciest neighbourhoods, with Florida now home to 38 of the 50 million-dollar US neighbourhoods.
For many wealthy Americans, Florida has become a pandemic destination of choice due to its sunny climate, relatively lax COVID-19 restrictions, and lack of state income tax. As a result, the state has seen a significant increase in demand for luxury real estate, with prices skyrocketing in the most exclusive neighbourhoods.
Dina Goldentayer, a luxury real estate broker in Miami Beach, has been witness to this change for almost two decades. She notes that the vibe of the area has changed from the party atmosphere that once drew young people to Miami to a desirable place to live for wealthy Americans. “Miami Beach used to be this place you come a few days to party, get some sun and get out,” she said. “Now it’s the place to live. It’s the lifestyle, weather, economic policies, political policies. Everyone wants to come here.”
The shift towards Florida as a destination for the wealthy has important implications for policymakers and businesses alike. In particular, New Zealand should take note if it wants to retain its high net worth individuals. The country’s clean, green image is no longer enough to attract and retain the people who pay a significant portion of its taxes.
New Zealand’s current policies are not attracting the wealthy. For instance, the country’s high taxes and overly strict COVID-19 policies, coupled with the limits on immigration, are making it increasingly difficult to retain wealthy individuals. While New Zealand’s clean green image is still an asset, it is no longer enough to keep the country competitive with other destinations that are more favourable to the wealthy.
In conclusion, the economic and political policies of different regions in the United States are leading to significant demographic shifts, particularly among wealthy Americans. For New Zealand, it’s vital to take note of these changes and develop policies that will encourage high net worth individuals to stay in the country. Otherwise, New Zealand may lose out on the significant benefits that these individuals bring to its economy.
John Kenel
Assured Property
