Florida Ranks In Top 5 States For Millennial Millionaires
MIAMI (CBSMiami) – South Florida's real estate market is a hot commodity and it is making people rich, especially millennials. Florida ranks in the top five states for "millennial millionaires," people between the ages of 24 and 37 with a net worth of more than a million dollars.
There are approximately 618,000 millennial millionaires in the United States. According to a 2019 report from Coldwell Banker Global Luxury and WealthEngine, 5% of millennial millionaires live in the Sunshine State. About 44% are in California and 14% in New York.
Florida is seeing a trend of those millennial millionaires leaving high-tax states like California and New York. Jeremy Gardner, 28, is one of those, leaving San Francisco for Miami Beach.
"The weather here is great, the nightlife, the tax benefits are amazing. I mean you go from paying the most in taxes in the country to the least by going here," said Gardner.
Gardner made national headlines between 2017 and 2019 for dropping out of college, becoming a face for cryptocurrency, and making a millionaire before 25-years-old.
Now, the self-made millionaire has his hands in various business ventures. He is even developing a skincare line for men.
People like Gardner are part of the demographic realtors like Nathan Zeder with the Jills Zeder Group are looking for.
"The big changes were before, domestically, we'd see people come down here for winter," said Zeder. "Now, [wealthy people] move to Florida, saving significant part of their income by not paying state income tax."
Popular areas in South Florida specifically include Coconut Grove, Coral Gables, Brickell, Downtown, Wynwood, Edgewater, and Miami Beach.
"Anything with an urban core," explained Zeder. "Walkability is super important [to this group].
The good news: Zeder says the influx of millennial millionaires moving here won't affect most of us. The bad news: housing prices and cost of living is going up regardless.
"Like any market that has a finite amount of land the prices in the good areas will go up and the cost of living could also go up but it should be a gradual increase over time," said Zeder. "Affordable housing in any major market is somewhat of an issue, and something that we will need to continue to address, but I have a strong belief that as people continue to move to South Florida they will be able to find places within their price range to live. "
What Zeder is focused on is a 2019 study by Coldwell Banker that shows by 2030, millennials will have 5 times as much wealth as they do now. They will also inherit over 68 trillion dollars from their baby boomer parents in what's called the Great Transfer of Wealth.
Translation? Issues millennials say they face like college debt, high cost of living, and the challenge of finding well-paying jobs may change – the study indicating that millennials may become one of the richest groups ever.
"Millennials are overtaking baby boomer in terms of population," said Zeder. "Wealth is going to be something that's important and real estate."
Still, right now, only about 1% of millennials can call themselves 'millennial millionaires.'
Gardner, who grew up in middle class in a small Massachusetts town, says while he falls under that category, it does not define him.
"I don't think making money was the ambition for me," said Gardner. "I wanted to something I enjoyed. I wanted to be successful."