Why Miami Is A Hot Spot For Homebuyers Despite Climate Risks

The number of homebuyers flocking to Miami has tripled in the last year.

Three of the top most popular destinations for home-seekers were in Florida cities,  according to a Redfin report, despite the higher likelihood of home destruction from sea level rise and chaotic storms. 

What Happened: In addition to Florida, homebuyers are also moving to the warmer, coastal areas of California and Texas. 

Grant Stern, president of Florida-based Morningside Mortgage, said newcomers are streaming into Florida because of its temperate weather, low taxes and relatively cheap home stock for high-income earners. 

“Florida has a regressive tax regime,” said Stern.

“In other words, people who make less money pay a higher percentage of their income (in taxes) than people who make more money.” 

As such, Stern said high-end earners are moving from places like New York and California, where local and state income taxes are much higher, to buy homes in a relatively cheap market while interest rates remain still low. 

Why It Matters: As the most recent U.S. Census data shows, Americans are flocking to the coasts, where there is often a higher propensity for flooding or fires.

The risks have not deterred potential homebuyers. Just the opposite: a separate Redfin report found that most Americans are moving to areas where their homes are at a greater — not lower — risk of destruction due to worsening changes in the climate. 

People continue to move to Florida because, Stern says, the typical homebuyer isn’t fully aware of the implications of climate change. 

“Ignorance is still bliss,” he said, adding that people are still not so concerned because the housing market has yet to include the economic consequences of living in more vulnerable areas. 

A Redfin economist said people still don’t care about the consequences of climate change, preferring to appreciate the present rather than concern themselves with the future.  

“Many people who move to Miami are thinking about the short-term benefits of living in such a vibrant, beautiful and prosperous city,” said Redfin Chief Economist Daryl Fairweather in the report. 

Photo: Antonio Cuellar via Unsplash.