With each passing year, the number of ultra-rich people living in New York City declines. While the pandemic accelerated this trend, the wheels were already in motion before 2019.
It’s difficult to pinpoint why New York City’s elites are fleeing, but many believe it’s a result of the state’s high tax rates. Regardless, some states — including Florida, Texas and Arizona — are taking in a large number of these people.
According to an August 2022 SmartAsset study, Florida is the king of attracting high-earning households.
No state is gaining more high-earning households than Florida. Despite losing 11,756 tax filers who reported at least $200,000 in income in 2020, the Sunshine State added 32,019 high-earning households that same year. That’s a net addition of 20,263 high-income filers.
Even legendary investor Carl Icahn left New York City in 2020 after decades of calling it home.
While the warm weather is attractive to many people relocating from New York City, Florida has something even better to offer: no state income tax. For someone earning hundreds of thousands or millions of dollars per year, this is a massive opportunity to save.
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Startups Are Taking Advantage
With startups leaving higher-cost regions in search of affordability, cities like Miami are taking full advantage. But that’s not to say it’s cheap to live and work in the Magic City.
Rising prices are forcing startups and established businesses alike to adapt. Startups like ARKHAUS are finding new and innovative ways to adapt. ARKHAUS is using a legal loophole of sorts to acquire some of the most sought after ‘real estate’ at a fraction of the price. ARKHAUS is one of the first startups building a global chain of lifestyle clubs with each social club built on top of four customized, connected livable yachts. This provides members with the opportunity to meet, network, entertain and relax and other features you’d expect from a club, but doing so sitting on a luxury yacht in the water.
Other features of ARKHAUS floating social clubs include a protected swimming pool, outdoor decks and rooftop lounges.
Are You Ready For A Change?
If you’re ready to leave New York (or any other state) in the past, here are three tips that can make your move less stressful.
- Consider the pros and cons: Leaving New York for Florida may have many benefits, but that doesn’t necessarily make it right for you. Compare the pros and cons before making a final decision.
- Review your finances: What impact will the move have on your personal finances? How about your business? What about your estate plan and investments? Consult with a financial adviser for professional guidance.
- Know how far your dollar will go: A dollar gets you more in Florida than it does in New York City or San Francisco. Consider this when choosing a location to call home.
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