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Former Miami Mayor Francis Suarez discusses how New York’s high taxes and leftist policies are driving wealthy residents to Florida and fueling record growth in Miami’s booming economy.
Miami is now home to more million-dollar listings than New York, a sign that the center of gravity of the luxury housing market continues to drift south.
According to Realtor.com’s Dec luxury housing report, Miami topped New York with 10,591 homes listed for $1 million or more, compared to New York’s $10.176 million listings.
New York held the top ranking for nearly a decade, and at the end of December, Miami cemented its lead as a long-term destination for wealth and housing demand.
“This is not a temporary spike, it’s an evolving market. The drivers supporting Miami’s growth are long-term: demographic trends favoring the Sun Belt, increased international capital flows, and a deepening presence of global finance, technology and business infrastructure,” Douglas Elliman Vice President. Dottie Herman told Fox News Digital.
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“That said, growth is not limitless,” he said. “Insurance costs, climate considerations and the risk of overdevelopment in certain submarkets will require disciplined planning and careful execution.”
The Miami metro area has surpassed New York with the largest number of home listings of over a million. (Getty Images)
Miami’s luxury shoppers they are more likely to be cash buyers, international buyers, retirees or second home buyers. The report says this demographic is less sensitive to mortgage rates, school calendars and seasonal norms, keeping inventory levels higher year-round.
Seasonality appears to favor the Magic City as inventory remains more stable and allows developers to rebuild supply more quickly with a higher baseline. In contrast, New York’s luxury listings follow a more traditional cycle, with a rise in the spring and a fall in the winter.
“Miami outpacing New York in million-dollar listings is more reflective of Miami’s expansion, compared to New York’s weakness,” Herman said.
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“Over the last decade, Miami has fundamentally expanded its definition of luxury. The market offers waterfront living, newer construction, resort-level amenities and a lifestyle component that is directly built into the product. In contrast, New York’s luxury market is inherently finite and vertical, limited by land, zoning and supply,” he explained.
The New York market is not collapsing, but losing ground in a mature environment, the report says. The Big Apple saw its real estate market shrink after the pandemic, driven by fewer high-end new listings, a slowdown in the exodus from the city and homeowners holding on longer.
“The lack of a state income tax in Florida compared to the combined tax burden of the state and New York City represents a significant financial difference for high earners,” Herman said. “For many buyers, these savings translate directly into improved purchasing power or long-term capital preservation.”
Dottie Herman, CEO of Douglas Elliman Real Estate, argues that small businesses are finding good deals in New York real estate.
Notably, 26.3% of Miami’s luxury demand comes from the New York metro area, more than the next eight metros combined.
“New Yorkers have played a critical role as market shapers. A significant portion of Miami’s luxury demand comes from the New York metropolitan area,” Herman said. “This is not a broad-based migration of the entire population of New York. This is a targeted relocation of high-income professionals working in fields like finance, technology and real estate who have both the means and the flexibility to choose where they live.”
Looking through a more national lens, luxury prices are stabilizing, with the top-tier threshold at $1.19 million, down slightly from a year earlier. Luxury homes are taking longer to sell, averaging 88 days, reflecting cautious buyers and seasonal cooling.
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In general, price gaps are wide: luxury homes range from two to five times the local median home price, depending on the specific market.
“The most accurate framing is this,” Herman said. “Miami does not replace New York. It joins New York as the co-capital of American luxury real estate. New York remains the cultural, financial and institutional anchor: Miami has become the lifestyle hub, the market for flexibility and a global magnet for mobile wealth.”
