Tax Hikes Spark SUNBELT Real Estate RUSH!

Wealthy buyers are fleeing New York City amid Mamdani’s tax proposals, causing a surge in Florida home purchases.

At a Glance

  • Zohran Mamdani won the Democratic mayoral primary on June 24, 2025.
  • Real estate brokers reported increased inquiries for move-outs to Florida.
  • Florida does not impose a personal income tax on residents.
  • Luxury home sellers in Florida offered price cuts to attract out-of-state buyers.
  • High-net-worth individuals paused New York property deals amid political uncertainty.

Shock Exodus Unfolds

Zohran Mamdani secured 43.5% of the vote on June 24, 2025, in a surprising upset over former Governor Andrew Cuomo, triggering immediate panic among the city’s wealthy elite (Newsweek report on elite relocation).

Within two days, Miami-based Douglas Elliman noted a 32% increase in inquiries from New York clients, while Compass Realty saw similar spikes in search traffic for Palm Beach listings.

Watch a report: Why Elite Buyers Are Fleeing NYC.

Real estate attorneys report that over 120 high-net-worth individuals have indefinitely paused six- to seven-figure Manhattan deals as they explore relocation packages and tax shelters in Florida’s suburbs.

Political Panic Spurs Migration

Mamdani’s platform proposes a flat 2% levy on incomes above $1 million and an 11.5% corporate tax increase, stoking fears of a “tax hell” under his administration (Times analysis of proposed levies). Clients have voiced alarm over potential rent freezes and mandatory municipal grocery co-ops, with a local think tank estimating up to $500 million in deferred real estate transactions this quarter.

The Mayor of Boca Raton launched a pro-relocation campaign highlighting zero income tax and reduced property rates, even offering expedited permitting for luxury remodels to lure executives away from Manhattan’s volatility.

Florida Opens Doors

Florida’s prohibition on personal income tax makes it a magnet for high-net-worth individuals seeking fiscal relief (NerdWallet guide to Florida taxes).

Luxury home sellers across Miami-Dade and Palm Beach counties have introduced up to 5% price cuts and bespoke incentives—such as covering closing costs and offering complimentary memberships to private clubs—to capture incoming wealth.

A recent Moody’s Analytics housing forecast predicts that if just 10% of current inquiries convert, Florida could see over $2 billion in new residential investments by December 2025, potentially boosting state tax revenues by 0.8% despite the lack of an income tax (Moody’s Analytics housing forecast).

Travel agencies and private jet operators confirm a 30% uptick in chartered flights from Teterboro and Westchester airports to Miami and Fort Lauderdale, signaling a full-scale migration of the city’s richest residents.