""This wealth migration has been the primary factor driving up prices, with prices continuing to climb due to strong demand, even when mortgage rates started to hit over 5% in 2022 and as rates have remained elevated to over 6.5% to date.""
""What we're seeing isn't just a housing shift: It's a reshaping of who can realistically afford to live in these markets. When buyers coming in have significantly more purchasing power than local residents, it doesn't just push prices up. It pushes entire income groups out.""
Florida has experienced a significant influx of wealthy transplants, resulting in a dramatic increase in home prices. The state gained $20.65 billion in annual adjusted gross income from new residents in 2023, with an average income of $122,530. This wealth migration has led to rising housing costs, even amid elevated mortgage rates. Consequently, essential workers like teachers and nurses are being pushed out, leading to a decline in the middle class. The state absorbed a net $137 billion in income from other states between 2019 and 2023, indicating a major economic shift.
Read at Fortune
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