All eyes are on South Florida from New York City residents wanting to move from the Big Apple now that Zohran Mamdani is officially the city's Mayor-elect.
There has been a political shift in New York City with Mamdani building his campaign around making the city more affordable, but his policies have raised concerns among some about potential tax increases and policy changes from his administration.
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The Scripps News Group in West Palm Beach has uncovered that many New York City residents have already initiated what’s being dubbed the "Mamdani Migration" as people are looking to make South Florida their new home full-time.
Rising demand in real estate
The real estate offices of Sutter & Nugget in North Palm Beach told the Scripps News Group that the Palm Beach County market is getting a surge in demand.
"The last two weeks, it's been completely a game changer," said CEO Talbot Sutter.
He said his New York City clients have been a mix of seniors, families, residents and workers whose companies are relocating to South Florida.
To meet this surging demand, Sutter shared that they are "having to hire more members to our team to handle the demand from New Yorkers wanting to move down."
So, where are New York City residents looking to move down to?
Sutter revealed that the top cities his New York City clients are targeting include Jupiter, Palm Beach Gardens, Delray Beach, and Boca Raton. Impacts from the migration was further evidenced by recent offers.
"We've had directly two offers that were stalemated over the summer that we've had three showings Monday and Tuesday and offers today, Wednesday — because of the race. Directly out of the buyer's mouth, they said they were waiting until Wednesday, and we got the offer this morning." Sutter said, emphasizing that issues surrounding taxes and quality of life are significant motivators for these New York City transplants.
In the past few years, Sutter estimates that around 30,000 New York residents have moved into Palm Beach County and Broward County alone.
Inventory concerns
"I'm seeing a lot of what I call a 'coke bottle' effect, where it's an influx of people, and not enough inventory," said Sutter. "Some people say inventory is up right now. We were just looking at stats this morning 56% from year to year, but that inventory is also being scooped up in the last month like that."
Despite a year-to-year increase in inventory, Sutter insists "that inventory is also being scooped up in the last month like that."
Boca Raton's appeal
On Tuesday, the Scripps News Group spoke with Boca Raton Mayor Scott Singer about the city's efforts to attract New York City businesses and have them relocate their corporate offices to Boca Raton. Singer acknowledged the potential influx.
"We will expect to see that, but we can't accommodate everyone," he stated. "We're a fairly built-out city. We might have people trying to buy homes here, but we're not building to accommodate everyone who wants to come from New York."
Singer elaborated that new building projects aren’t primarily aimed at incoming residents but focus on creating space for New York City businesses that have already committed to relocating to the area. He calls Boca Raton the economic engine of Palm Beach County, highlighting that it is home to 40 publicly traded companies from industries such as financial services, financial technology, medical technology, AI, quantum computing, manufacturing and more.
"I think that's great; it provides the job and economic vitality we need in ensuring jobs for the next generation and beyond," Singer remarked.
Economic impact
Sutter acknowledged the potential for increased traffic but suggests “where companies come, residents will follow.” He noted that New York residents alone have contributed $9.2 billion in revenue to South Florida.
He also went through his inventory platform and told the Scripps News Group there are over 5,000 single-family houses available for purchase throughout Palm Beach County. However, Sutter fears that this inventory may not be enough, predicting they could be sold within the next three months from the surge in New York City residents.
"I've seen West Palm as the Wall Street — not the new Wall Street — and I see the area exploding," he warned.
To navigate the shifting landscape, Sutter has observed that his New York City clients are open to settling in communities further west. He said he has also heard from people in states like Illinois and California expressing interest in South Florida.
Advice for potential movers
Despite the fervent interest in relocating, Sutter advises potential movers to take their time.
"Don't rush into a property and research the areas," he advised.
He recommends buying property in a neighborhood that is in proximity to work, ensuring a smoother transition for new residents.
This story was originally published by Joel Lopez with the Scripps News Group in West Palm Beach.
