Move over, Golden State. You’re being replaced by the Sunshine State.
The wealthiest people in the U.S. are forsaking California in favor of Miami to escape a looming wealth tax that might be coming to the West Coast state. And as these affluent folks head to the 305, they’re giving the real estate market a seismic shakeup upon their arrival by snatching up luxe mansions in South Florida, Bloomberg reported.
Larry Page, the cofounder of Google, is one of many people making the move. He reportedly just snagged a $101.5 million manse and another $71.9 million property in the luxe enclave of Coconut Grove last month, according to Bloomberg. Another adjacent $15 million home was also allegedly snapped up by an entity connected to Page in January, too, completing his property trifecta (and following the trend of billionaires amassing luxe compounds in Miami). Fellow billionaire Mark Zukerberg has also stepped into the Miami fray, reportedly buying a property on Indian Creek, a man-made isle that’s also known as Billionaires Bunker. If the Facebook founder has actually purchased a home there, he’ll count Jeff Bezos (who has a $90 million spread there) and Tom Brady (and his blinged-out watch collection) as his neighbors.
And other billionaires are following in their footsteps, on the hunt for properties that sit between $30 million to $150 million, which has caused a shortage on the Miami market. Others, meanwhile, are just looking for a (relatively) lower-priced abode to help them become a resident of the Sunshine State, with plans to snag another home once the competition abates and more properties are listed.
“They’re here, and they’re writing offers,” Douglas Elliman broker Dina Goldentayer told Bloomberg. She says the current influx of Californians looking for luxury properties is stronger than she’s ever seen previously.
And though all this billionaire kerfuffle and reshuffle is affecting California, the actual reason behind it isn’t even on the November ballot yet. As of right now, the wealth tax proposal is just that—a proposal, one that California Governor Gavin Newsom has come out against in full force. If the measure does manage to collect enough signatures to be presented to voters later this year, it would still need to muster enough yes’s before it becomes law. The wealth tax, should it actually see the light of day, would make those with over $1 billion fortunes as of Jan. 1 of this year pay a one-time, 5 percent tax to California. There’s a long way to go until then, though—but apparently, billionaires aren’t going to take any chances.
Authors
Nicole Hoey
Nicole Hoey is Robb Report’s digital editor. While studying at Boston University, she read, wrote and read some more as an English and journalism major. A class taught by a Boston Globe copy editor…