To a casual observer, everything in the South Florida real estate garden appears rosy. There is a “gold rush” in Miami as ultra-wealthy buyers snap up mega-mansions and lavishly appointed condos as soon as they hit the market; and The Guardian has also recently reported on the “Mamdani effect” of elite New Yorkers arriving in the Sunshine State with deep pockets seeking an expensive escape from the city’s new mayor.
However, along with the boom, there are rumors of a more worrying parallel reality. Without a doubt, the billionaire class is helping to pump even more dollars into an already thriving Florida economy. But as prices rise and the less wealthy find everything from housing and insurance to gas and food increasingly more expensive, many are considering doing something about it.
A recent survey by Florida Atlantic University (FAU) showed that at least half of the state’s residents were considering leaving due to the cost of living, and 80% of them cited concerns with housing affordability.
Experts say there is no complete panic and little indication that traditionally lower-paid essential workers in education, health care and other service industries that serve the newcomers are leaving en masse. Even Eric Levy, FAU senior business economist and co-author of the survey, said he prefers to see it as confirmation that the American dream is alive and well as families make plans to improve their circumstances.
The evidence that points to trouble ahead is more than merely anecdotal. Significantly above-average housing costs in many areas have helped propel Florida into the top 10 most expensive states to live in; and the popular metropolitan region that includes Miami and Fort Lauderdale – where newly built condos can fetch tens of millions of dollars – is also notoriously “housing poor.” It has three cities in the top six of a Consumer Affairs report on affordability where the percentage of household income spent on housing is 32% or more, compared to the national average of 24%.
Meanwhile, a May 2025 report in the Miami Herald said that while Miami’s millionaire population increased by 94% between 2014 and 2024, Miami-Dade County experienced a net migration shortfall of more than 130,000 people between 2020 and 2023, largely, but not exclusively, due to rising housing costs.
Some of those who have moved speak of the high prices and the stifling traffic that is driving them out.
“Floridians believe in the American dream, but they are paying dearly for it,” Monica Escaleras, chair of FAU’s economics department, said in a statement accompanying the survey. “Florida’s promise of sunshine, growth and upward mobility lives on, but it is getting expensive to maintain.”
Levy said the “grass is greener” sentiment was not unique to Florida residents, but the growing wealth disparity between those coming and going was notable.
“It certainly makes you think: If a lot of rich people are moving there, will they displace low- and middle-income people?” said.
“It’s definitely an interesting question. I don’t think our data shows it, but I guess what was surprising about our survey was that a lot of people were considering leaving Florida.”
A look at other related data points to the same conclusion: While super-rich buyers are arriving in droves, attracted by year-round good weather and the absence of state income taxes, others are being left out.
Pediatricians, for example, are increasingly scarce in hospitals and in private practice. There are other reasons, including Florida’s unorthodox vaccine policies that deter medical professionals, but few medical graduates with substantial college debt can afford to lose large amounts of their income on housing and choose to seek employment in lower-cost states.
The steady flow of new residents into Florida also appears to have slowed. A 2025 migration patterns study by Atlas Van Lines recorded a nearly equal split between the number of arrivals and departures. Between 2023 and 2024, 1,200 people moved per day, according to an independent study by Consumer Affairs. More recent estimates reflect a sharp slowdown to around 500.
Retaining residents who work in hospitals, schools, retail stores and other crucial industries and services has become a priority for municipalities and private sector partners, and several affordable housing projects are underway in Miami.
The urgency of the vision is shared by Sebastian Lüdke, CEO and founder of German group ALP.X, co-developer of the upcoming Cloud One Residences, 85 loft-style apartments combined with a hotel, shopping and restaurant center in Miami’s Wynwood neighborhood.
He opted to build in the popular and revitalized former industrial district, far from the opulence of South Beach’s multimillion-dollar oceanfront condominiums and the equally expensive and fast-paced downtown neighborhood of Brickell. While Cloud One is not an affordable housing development, Lüdke said the project was designed to improve Wynwood, including providing jobs for local workers.
He said he also believed developers had a moral obligation to the communities in which they chose to build.
“The price we’re setting starts at $400,000 to $500,000, so local people could definitely afford to live and buy in the building,” he said. “But overall, the whole affordability aspect in the city is important and goes beyond affordability and encompasses livability.
“What is extremely important for Miami to evolve as one of the big three cities alongside New York and Los Angeles is education, improving it from kindergarten to schools and universities. With affordable and accessible education, there is some improvement in people’s skills, which helps them access good jobs that will help with long-term affordability.
“Also very important is investment in infrastructure, affordable housing, public transportation, health care… with the growth that Miami has experienced and with the challenges that Miami has with traffic, education and housing availability, this really needs to be a central focus for the public administration and the entrepreneurs who contribute to investments in all of these sectors.
“My perception is that the local population and businessmen are very aware of this.”
