In a new Redfin report, Miami was ranked fifth out of ten U.S. metros expected to have more residents within the next year.
The city already has gained 2,295, new residents in the first quarter of 2018, compared to 1,202 in 2017. Of the people searching for Miami-area homes on Redfin.com, 27.7 percent live outside the area, according to the study.
Of all the users searching for relocation in Miami, the highest percentage of searches comes from New York City. Along with New York, residents from numerous other U.S. cities are looking to Miami.
Top 10 out of state metro origins for Miami:
- New York, NY – 22.4 percent
- Washington, DC – 12.3 percent
- Boston, MA – 7 percent
- Chicago, IL – 6.4 percent
- Los Angeles, CA – 5.6 percent
- Bay Area – 3.9 percent
- Atlanta, GA – 2.7 percent
- Philadelphia, PA – 2.5 percent
- Seattle, WA – 2 percent
- Denver, CO – 1.4 percent
Many attribute New York residents relocation to Miami to the new federal tax laws.
Tax reform, which was signed into law Dec. 22, sets a deductions cap for income, sales and property taxes at $10,000. The new cap is leading more residents of states with high property values and state income tax—like New York — to purchase properties in states such as Florida, which has no state income tax and a pro-business tax structure.
“Miami and Florida as a whole is attracting Americans leaving high-tax states such as New York as the new tax law cuts into their income-tax deductions,” George C. Jalil, the 2018 MIAMI Chairman of the Board, said in a recent press release.
As more people relocate to Miami, there’s an increased risk of prices becoming unaffordable for residents if the city doesn’t keep up on building more homes for the residential influx, Redfin says.