Central Florida is known for many things, including beautiful Gulf Coast beaches, world class theme parks, major pro sports teams and hot, humid weather. It is also known for affordable housing, a booming real estate market, no state income tax and vibrant, beautiful cities.
Increasingly, people with high net worth are choosing to move to Central Florida. One of the reasons Central Florida is attractive to people with wealth is the SALT tax law. This tax law limits the deductions for state and local taxes; big earners in states like New Jersey, Connecticut and New York are taking the biggest hit.
The tax law is a major concern for wealthy individuals in the affected states; it’s not surprising that some high net worth individuals are moving to Florida to escape tax laws. More than half of the people moving to Central Florida are moving from northeastern states such as:
While many people associate Florida with memorable vacations and retirees, a study conducted by the University of Florida’s Bureau of Economic and Business Research found that a significant influx of individuals migrating to Florida are millennials and baby boomers.
Migration studies conducted by Pew Research found that Florida has seen a significant increase in population since 2014, especially in the Tampa Bay area. This growth has led the U.S. Election Data Service to suggest that Florida will gain additional congressional seats in 2020.
While tourism continues to be an important economic base for Central Florida, the swell in permanent residents in the area has caused a change in demographics. Florida is expected to experience a significant increase in job opportunities that are particularly attractive to young people, such as employment in the cleantech, information technology and life science industries.
Central Florida’s growth has been attributed to the real estate and financial sectors. High net worth individuals are also attracted to Central Florida to take advantage of investment opportunities in real estate. Central Florida is rich with culture, boasts an educated workforce, arts, near-perfect weather, low taxes and is home to over 140 alternative investment companies, including private equity groups, wealth management firms, international banks and hedge fund management firms.
Central Florida is loaded with endless recreational trails, top-notch cultural attractions and museums, gorgeous nature preserves, amazing coffee shops, fabulous local restaurants and breweries, a diverse waterfront and so much more. It’s no wonder that so many high net worth individuals are leaving states with higher taxes, poor weather and a declining job market in favor of Central Florida.
High net worth individuals face unique insurance challenges. Here at Lanier Upshaw we understand wealthy families have more complex risk management needs. Contact a Lanier Upshaw advisor to learn more about how we are able to smooth out the relationship between needs and coverage and ensure you receive the necessary benefits required in a policy.