Florida Real Estate Market: Pandemic Triggers Mass Exodus

Florida Real Estate Market: Pandemic Triggers Mass Exodus
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The Florida Real Estate Market sees an unprecedented growth in the wake of the pandemic.

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Prolonged Isolation Is Making Florida Real Estate Market Attractive

Prolonged isolation due to COVID-19 is creating a growing desire among those living in dense urban areas to seek living spaces that provide more privacy, space, and safety—leading to a sharp increase in demand for properties. This trend is especially being felt in southern parts of the country.

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Redfin recently surveyed 1 million users and found that 27% searched for homes outside densely populated areas, their largest number to date. In addition, 50% of Redfin’s users living in New York, Seattle, Boston, and San Francisco would be willing to relocate if they had the option of working from home permanently.

Especially attractive is Florida for its warmer weather, greater array of outdoor activities such as golf, and lower taxes. With the sudden surge in demand for these properties, even buyers who are acting quickly are getting into bidding wars.

Why Florida is So Attractive:

  • No state income tax and no estate tax as well as asset protection benefits
  • Homestead exemption for the first $50,000 of the home value
  • 3% cap on annual assessments and 6% state sales tax.
  • That tax advantage over New York and New Jersey only increased after an overhaul in 2017 capped its state and local taxes at $10,000.
  • Similarly, tax rates in Massachusetts have been driving flight from the state. The state has already seen a net loss of $20 billion to states including Florida, where there is no state income tax.

The Exodus Has Started

The exodus looks to have already started. Moves from New York and New Jersey to Florida rose 4%. Furthermore, Florida was a top destination for New York City residents, rising 10% year over year as of September 2020.

North American Moving Services’ 2020 Migration Report included New York and New Jersey among the top five states for outbound moves, whereas Florida, Texas, and Colorado ranked among the top eight states for inbound moves.

“Even Wall Street has noted that their employees aren’t looking forward to returning to their old Manhattan offices and prefer working remotely. The draw of warm weather, swimming pools, and spacious homes—and the fact that much of their clientele is already living nearby provides the perfect mix of incentives for stockbrokers, bankers, and portfolio managers to make Florida their new home state. The market here is just poised to explode.” –Regina Sotomayor, Chief Organizational Officer, Valor Capital.

Serena by the Sea

As the lower tax rates are a huge boon for those in the luxury market looking to relocate—and as the concerns over COVID-19 in areas of higher population densities have started to lose some of their allure because of safety concerns, Valor Capital is announcing their newest $70 million project, Serena by the Sea.

The 80-unit boutique property overlooks the Gulf of Mexico and is located just minutes away from downtown Dunedin, a city on Florida’s Gulf Coast. Dunedin is home to several beaches consistently rated among the best beaches in the world—such as the Dunedin Causeway, Honeymoon Island, and Caladesi Island State Park.

Dunedin is also one of the few open waterfront communities from Sarasota to Cedar Key where buildings do not completely obscure the view of the Intracoastal Waterway and the Gulf of Mexico beyond.

Valor Capital’s first Broker’s Event for Serena by the Sea will be held on March 5, 2021 at The Capitol Theatre in Clearwater, Florida. Cocktail hour begins at 5:00 pm. Valet parking will be provided.

The excitement surrounding the luxury property will be graced with guest appearances that include Ryan Serhant, top-producing real estate agent and star of the series Million Dollar Listing and Sell it Like Serhant.

Why is the Florida Real Estate Market so hot right now and how will Serena by the Sea meet the demand of the great exodus? Regina Sotomayor speaks about the following:

  • How has COVID-19 affected the real estate market?
  • What makes Florida so attractive for real estate?
  • What makes Tampa Bay so desirable?
  • What makes Serena by the Sea unique?
  • Why was Dunedin chosen for this development?
  • How will this development cater to the luxury real estate market?
  • When is the Brokers event?
  • When does the project break ground?

About Serena by the Sea

Valor Capital’s newest resort-style, waterfront condominium development, Serena by the Sea offers relaxed, luxury living where its residents enhance their lives, find solace from the confusion and difficulties of daily life, refresh and prepare to conquer life once again. Serena by the Sea is where one can truly pause and appreciate all that they have achieved. Visit www.serenabythesea.com

About Valor Capital

Valor Capital is a subsidiary of Terra Capital Partners SA de CV (Terra Capital Partners). Terra Capital Partners has been in operation for over 15 years (while its main partner has more than 30 years of experience) and is the parent company of several sub-companies and investment funds that each have a specialization in different aspects of the real estate business (shopping malls, corporate offices, residential buildings, and land development. To learn more, visit valorc.com

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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