A popular destination for a reason
An analysis by Realtor.com found that in 2019, only 6.5% of listing views in Palm Beach County came from New York. By 2021, that share had increased to 8.1%. By 2023, it reached an all-time high of 19.6%.
When the pandemic hit, many New Yorkers left their tiny apartments. Some moved to nearby suburbs in New Jersey and Connecticut, while others went further south to take advantage of what Florida had to offer.
Aside from its warm climate, Florida offers one financial perk: no state income tax. New York, by contrast, has some of the highest state income taxes in the nation.
It's also not shocking that New Yorkers, in particular, have been driving up Palm Beach real estate prices.
According to Zillow, the average home value in Palm Beach is $2,127,973, up 1.9% from a year ago. Realtor.com reports that Palm Beach home prices peaked at $4.15 million in April of 2022. Today, the median listing price is $2.9 million — equating to a whopping $1,600 per square foot.
New York City has long been a hotbed for six- and even seven-figure salaries, with high-paying industries in finance, law and medicine. So it stands to reason that buyers accustomed to New York’s high cost of living are among those purchasing expensive homes in Palm Beach.
An IRS study found that Manhattan residents who relocated to Palm Beach County on the heels of COVID-19 had an average annual income of $728,000.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreThe affluent are taking over
Now that New Yorkers have gotten their hooks into Palm Beach, it's becoming tougher for locals to afford a home there. In addition to driving prices up, New Yorkers have also much of the already limited housing inventory.
“Palm Beach saw a massive uptick in housing demand during the pandemic, which drove home prices higher and inventory levels lower,” says Hannah Jones, senior data analyst at Realtor.com.
But this trend extends beyond the island.
"In Palm Beach County in 2024, the median single-family home price was $665,000. In 2019, it was $370,000. That is an increase of 89%," Bozovic says.
Compounding the issue, high construction and land costs make building new homes nearly impossible.
When demand is high and inventory is limited, prices tend to soar — and stay high. That’s bad news for middle-class Floridians who want to stay in the area but don’t want to be stuck renting forever.
According to the U.S. Census, the median household income in Palm Beach County was $81,115 in 2023. While that may have been enough to afford homes at the $370,000 level, $665,000 is a different story.
That said, New Yorkers may not stay away from the Big Apple forever.
Many companies are pushing return-to-office mandates. In the coming years, we may see a reverse migration as New Yorkers return to the Empire State to keep their high-paying jobs. Resume Builder reports that by 2025, 87% of companies will have returned to in-office life.
But unless a major shift occurs, buying a home in Palm Beach may remain a privilege reserved for the wealthy.
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.
Try it now
