Despite a recent Bloomberg analysis showing the Miami-Fort Lauderdale-West Palm Beach metro area’s overall cost of living has surpassed greater New York, top real estate developers argue the numbers don’t tell the full story — and that Florida still offers buyers a better long-term deal.
“Miami has earned a seat as one of the greatest cities in the world,” Naftali Group EVP of marketing, sales and design Danielle Naftali told Fox News Digital. “As people have migrated down here, made it a location that people are living permanently, obviously, things have become a bit more expensive… world-class restaurants opening here, the most amazing cultural institutions, entertainment, hospitality groups — everything that people really experience in major cities around the world.”
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The debate comes as U.S. Bureau of Economic Analysis data shows consumer prices in South Florida have risen 36% since 2019 — the second-highest inflation surge among major American markets — while home prices have jumped 79% since the pandemic, according to S&P CoreLogic Case-Shiller data.
Why developers say the price gap is misleading
PMG managing director Ryan Shear, a South Florida native, said Miami’s real estate was “weirdly inexpensive” for decades compared to cities like New York, London, or Los Angeles. He argues the recent surge is simply a correction.
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“Globally, Miami was playing catch-up to New York for long periods of time,” Shear told Fox News Digital. “I don’t think it tells the whole story. I think Miami is still a value city. I still think it’s a bargain play down here.”
Naftali echoed that sentiment, noting that today’s buyers are more sophisticated and focused on lifestyle and amenities rather than just price per square foot. “Anyone that’s buying in our development today will be able to see their appreciation over the next five to ten years,” she said.
The tax math and corporate migration
Florida remains one of nine U.S. states with no individual income tax, while top earners in New York City face combined state and local rates of nearly 14.8%. Shear called the difference “just math,” adding that the top tax bracket in Florida is set solely by the federal government.
“There’s no state income tax and there’s no city tax here. So the top tax bracket is set by the federal government, that’s it. That’s the math,” Shear said. “If anybody would tell you different, it’s not an opinion, that just factually is the truth.”
Corporate relocations are accelerating this trend. PMG itself moved its primary headquarters from New York to Miami, and Shear says other companies are following suit. “We’ve reached a tipping point where you’re seeing companies that are planting their flag in Miami and building companies or taking their existing company and moving them to Miami,” he said.
What it means for buyers and renters
While median household income in the Miami metro area was $80,625 in 2024 — about $1,000 below the national median — developers point to infrastructure improvements, permitting reforms, and school expansion as signs the region is preparing for continued growth.
Still, affordability remains a concern for middle-class residents. Florida’s average annual homeowners insurance premium stands at $8,292, roughly four times the average in New York state, according to Insurify. Property taxes in the Miami area have also jumped 62% since 2019, per ATTOM data.
Shear argues these costs are relative. “It is still less expensive to build in Florida than New York. And not by a little, by like a decent, significant amount,” he said. “Debt in Florida is the same as debt in Texas… Banks lend nationally and globally. So it’s still affordable to build in Florida.”
For buyers weighing the two markets, Naftali says the decision often comes down to lifestyle. “It’s a continuous progression. So when you talk about the next five years, it’s only going to continue to get better,” she said.
Shear put it more bluntly: “I think people have finally figured out that living in Florida may just be a better life that they want, and that’s invaluable.”
This article is for informational purposes only and does not constitute financial advice. Real estate markets are volatile and past performance does not guarantee future results. Prospective buyers should conduct their own research and consult with licensed professionals before making investment decisions.
