Why New Yorkers are migrating to Palm Beach, FL

Palm Beach County is one of the most auspicious locations in Florida and many snowbirds from New York are making the move permanent. This is not a simple case of wanting to head for sunny Southeast Florida in search of better homes and quality of life – the presence of more corporate-savvy New Yorkers in Palm Beach is transforming the area from an idyllic coastal paradise into a financial powerhouse that could rival the Big Apple.

Continue reading to know more about this phenomenon, as well as the many reasons why New Yorkers are moving to Palm Beach, FL.

THE MIGRATION FROM NEW YORK TO PALM BEACH

The sudden large-scale relocation of well-heeled New Yorkers to Palm Beach in 2020 and 2021 is part of what the Wall Street Journal refers to as The Great Pandemic Migration.

Numerous lockdowns, cold winters, and the flexibility afforded by remote work during that time can make any homeowner reassess their current living situation. And if you can live in a coastal vacation town with larger living and outdoor spaces, year-round sunshine, and no state income tax, the decision is very easy to make.

Strong population growth in 2021

Based on a 2021 population report from Unacast, Palm Beach County had the largest population gain in 2020 among all counties in Southeast Florida. It recorded around 11,000 new residents, accounting for 77% of the total county population. Of the estimated 59,000 NYC migrants to Southeast Florida, a staggering 41.5% chose to relocate to or extend their stay in Palm Beach County.

The report also estimated that New York lost around $34 billion during this wealth migration and Palm Beach County was the top recipient. This makes it the top county in Florida in terms of income and population growth.

The ongoing migration in 2022

Almost a year and a half later, vast numbers of New Yorkers continue to move to Palm Beach, FL. A strong indication of this is seen in the volume of applications for license switching which implies permanent or extended relocations.

According to the NYPost, the number of New York residents who switched their driver’s licenses to the state of Florida hit a new record in August 2022, with a total of 5,838 New Yorkers making the switch. On a year-to-date basis, the number has climbed to 41,885 – and experts are predicting a record-breaking finish by yearend.

For many of these New Yorkers, quality of life is the biggest reason for their move to the Sunshine State. Families, in particular, find that Palm Beach County and other areas in South Florida offer better opportunities in the aspects of housing, transportation, investment, and overall lifestyle.

ITS STRATEGIC LOCATION IS A MAJOR DRAW

Bordered by the Atlantic Ocean to the east and Lake Okeechobee to the west, Palm Beach County’s coastal environment provides residents with a pleasant tropical climate and a relaxed pace. Known as America’s First Resort Destination®, its pristine landscapes, economic stability, and premium location along Florida’s east coast make its housing market highly desirable for retirees, industry giants, and global leaders.

More importantly, transportation and travel are not an issue. Whether your trip is for pleasure or business, moving to Palm Beach, FL allows you to take advantage of the area’s accessibility and connectivity:

• By train. Brightline has a cutting-edge flagship station in West Palm Beach, offering hourly, high-speed train services along the 67-mile-long South Florida Corridor. The Tri-Rail commuter rail provides around 50 round trips daily along its 70-mile north-south route, as well.
• By plane. The award-winning Palm Beach International Airport manages over 200 non-stop flights daily. There are also four local commercial and executive airports within the County.
• By freight. Palm Beach County enjoys a strategic location along the Florida coast, making it one of the best locations for warehouses and distribution. It is a locus of activity in global maritime trade, with the 165-acre Port of Palm Beach having the highest container volume per acre in the US. When it comes to land transportation and logistics, the Florida East Coast Railway and CSX Transportation move cargo across 20 states and Canada.
• By car. Several major highways cut across Palm Beach County, which makes driving to and from different places in Southeast Florida much easier. This includes U.S. 1, State Road 7, the 1-95, Florida’s Turnpike, and Military Trail.

IT HAS A LUCRATIVE REAL ESTATE MARKET

The Palm Beach and West Palm Beach housing markets offer a diverse range of residential properties, ranging from expansive luxury condos to bespoke waterfront estates. Purchasing a home here is a worthwhile venture, not only because of its breathtaking views and timeless architecture but also because of the unparalleled safety, security, and quality of life that it can offer.

These reasons make moving to Palm Beach, FL one of the most important investments to make, especially in times of economic and political uncertainty. For example, the Palm Beach housing market maintained its strong performance during the first half of 2022 despite macroeconomic concerns such as inflation, the Russia-Ukraine war, and rising interest rates, mortgage rates, and home prices.

Here are some standout numbers from our latest Residential Market Report (as of December 2022):

• For single-family residential properties, there were seven transactions priced over $10 million in Q3 2022, with the highest trade amounting to $44.8 million. The median price was at $9.8 million and was only second to 2021’s record-breaking median price.
• For Midtown condominiums and co-op properties, the dollar volume for Q3 2022 amounts to $48.5 million, which is 60% higher than pre-pandemic levels in 2019. The median price also jumped by a whopping 148% year-over-year to $2.5 million.
• For South-end condominiums and co-op properties, many of its trades occurred off-market, which partly explains why the dollar volume decreased by 23% year-over-year. However, with a total of $54 million, it still boasts the second-highest dollar volume for this area. The median price increased by 60% year-over-year, as well, almost reaching the $1 million mark and going on record as the highest median for Q3.

If you want a more in-depth analysis of the Palm Beach Real Estate market, you can access our quarterly reports here.

IT HAS A PRO-BUSINESS ENVIRONMENT

Despite its resort-like environs, the Palm Beaches are more than just tourist destinations. The region’s great tax incentives and business-friendly protocols have attracted over 100 financial service companies, 400 corporate headquarters, and 6 million square feet of distribution centers. As a result, there are numerous job and career opportunities that offer an average wage of $61,040 – the highest average wage statewide. Local office and industrial real estate markets also had the largest absorption rates in 7 years.

This kind of profitable, upscale-oriented environment has drawn in a variety of companies and firms from all over the country. According to the Palm Beach Business Development Board, it has assisted with the relocation of over 21 companies, 14 of which were from out of state, since October 2021. This brought about over 1,352 high-salary jobs and almost $90 million in capital investment to Palm Beach County. Currently, the Palm Beach BDB is facilitating around 50 contracts from Northeastern cities such as New York, Boston, and Greenwich.

Another reason why people and companies relocate to Palm Beach County is its highly diverse local economy. While agribusiness and tourism had been the main drivers of its economic growth in the past, other industry sectors have been seeing positive trends, job openings, and rising demand in recent years. Here’s an overview of Palm Beach County’s top industries:

SOURCE:Palm Beach County Profile (2022-2023)

IT HAS HUGE INVESTMENT POTENTIAL

Southeast Florida is becoming a thriving hub for major corporate headquarters and capital investments. Palm Beach County, in particular, manifested massive economic growth in recent years, from skyrocketing property sales during the height of the COVID-19 pandemic to a vigorous “Wall Street South” initiativethat had 4 of the top 10 private equity firms moving their headquarters to the area.

If you’re planning to purchase property or invest in Palm Beach and West Palm Beach, here are some key developments to take note of:

Expect a boom in the local restaurant scene

New York-based financial firms such as Citadel, Elliott Management, Sanders Capital, and Millennium Management are not the only ones establishing themselves in Florida. Major investors in New York’s food and hospitality industry are also seeking ventures in the Palm Beaches.

For example, Major Food Group has opened four new restaurants in Boca Raton, with two more eateries in the works for Palm Beach and West Palm Beach. A couple of months later, Modern Restaurant Group’s El Camino Mexican restaurants opened an 8,500-square-foot branch at The Square West Palm Beach. The Impulsive Group followed with a new outpost of Sushi Lab at the Residence Inn by Marriott at Pompano Beach.

Expect a revitalized downtown area

Prominent developers like Place Projects and NDT Development have gotten the green light for their redevelopment of the Nora District in Downtown West Palm Beach. The first phase of this development project covers around 40 acres, stretching north to south from Palm Beach Lakes Boulevard to Quadrille Boulevard and from west to east along Dixie Highway to the FEC Railway tracks.

The new Nora District is poised to bring the stylish and vibrant character of Miami’s Wynwood to West Palm Beach. Envisioned to be a food and retail hub, Nora District will include public parks and around 2 million square feet of residential and office developments.

Richard Born, founder of BD Hotels and one of New York’s biggest hotel owners, is a principal investor in the Nora District redevelopment. He is also in charge of designing the project’s 175-key hotel, which will have more of a New York Romanesque Revival style – imagine the Mercer – rather than a South Florida Mediterranean style.

Expect a highly skilled and educated workforce

Home to a labor force of 3.1 million, Palm Beach County attracts some of the best and brightest across a wide range of industries. Not only does the area offer a leisurely and vacation-like environment but it also does not require personal income tax.

There are numerous opportunities for higher education and further career development, as well, with universities such as the Florida Atlantic University, Keiser University, Lynn University, Nova Southeastern University, Palm Beach Atlantic University, and Palm Beach State College all located within the County.

IT OFFERS A DYNAMIC AND FULFILLING QUALITY OF LIFE

Much has been said about the natural beauty and serene coastal lifestyle that Palm Beach and West Palm Beach offer its residents. While West Palm Beach is the epitome of a vibrant beach town, the town of Palm Beach is a tranquil seaside retreat, providing residents with two of the best sides of waterfront living.

But this beautiful community didn’t spring up overnight. Its unique Old World charm and elegant neighborhoods were the results of a century’s worth of development, beginning with the construction of the Royal Poinciana Hotel in 1894.

And the Palm Beaches will continue to develop, remaining a key part of Southeast Florida’s economic growth while preserving the pristine and calm environment that attracted people to it in the beginning.

Moreover, with flocks of “snowbirds” – a term used to describe seasonal or migrant residents from the Northeast – moving to Palm Beach, there are a lot of exciting new lifestyle-focused developments to look forward to. Here are some of them:

New restaurants

With New York’s biggest patrons moving to the Southeast, businesses soon followed. Palm Beach’s sunny climate and abundant outdoor spaces have allowed new residents to take safety precautions while exploring the thriving food and nightlife scene. Iconic New York spots like La Goulue, La Bilboquet, Bice, Sant Ambroeus, and Swifty’s have all recently opened or revamped locations in Palm Beach and surrounding areas.

New schools

Many homebuyers from Wall Streetchose to put their home purchases on hold while waiting for slots to open for their children at prestigious private schools such as the American Heritage Schools, Oxbridge Academy, the Benjamin School, the Donna Klein Jewish Academy, and more. This has prompted many institutions in the prep school industry to seriously consider opening campuses in South Florida, according to Dr. Douglas Laurie, president of the American Heritage Schools.

While it may be a challenging wait for students in the elementary and high school levels, there is good news for those desiring to earn a college degree: The University of Florida is planning to open a 14-acre West Palm Beach Campus, in partnership with Scripps Florida, one of the top research institutes in the world. The campus is projected to open in 2026 and will offer programs in data analytics, financial technology, AI, and cybersecurity.

New art communities

Palm Beach and West Palm Beach have over 30 museums and galleries, providing the perfect environment for an innovative and transformative art ecosystem and one of the most sought-after destinations in the art world after the pandemic.

New Wave, which was founded in 2018 by gallerist Sarah Gavlak and co-led with Sarah Haimes, is an art collective that aims to facilitate discourse around diversity, inclusivity, immigration, equal rights for women, and BIPOC and LGBTQ+ communities.

Their year-round artist residency program and art weekend features emerging artists from underrepresented communities, some of whom come from New York. In 2022, many of the event’s art patrons and collectors came from the displaced New York art scene, as well. With many public initiatives and opportunities to support artists, paired with art-centered urban spaces like The Square, Palm Beach is poised to become a transformative force in the global art world.

EXPLORE PALM BEACH WITH SUZANNE FRISBIE

Moving to Palm Beach, FL in the coming year? Navigate this competitive market with ease by working with the Frisbie Palm Beach Team. Led by licensed Broker-Associate and #1 Florida Realtor Suzanne Frisbie, our agents are skilled experts when it comes to luxury properties in South Florida.

Data-oriented and client-focused, we are committed to providing real estate services that go above and beyond your expectations. Get in touch with us today via phone, email, or our contact page here.