Why Everyone Is Quietly Moving to East Florida

Over 67,000 people left Miami-Dade last year. They're quietly going north to a place you might not expect. Today, I'm breaking down where they're going, why they're going, and what you can learn in case you're thinking about a change to where you live, as well. Guess where they're going? North to Vero Beach. There are three main groups of people that are deciding to come to Vero Beach. One, South Florida. South Florida has often come to Vero Beach as a vacation home or as a weekend home, but now the biggest change we've seen since COVID, selling 100% moving up here to Vero Beach.

Why? More affordable, less crowded, quieter, a more chill environment. Two, Orlando and Tampa. We call them the Central Florida movers. We have a whole cohort of buyers that are coming from Tampa and Orlando, east over to Vero Beach. Then, people that you would think of, Northeasterners, Canadians, increasingly Californians, New York, New Jersey, Connecticut, Massachusetts, a little bit of Maryland, some Michigan. Why? Well, number one, weather. Number two, taxes, because we have no state tax and no state income tax. So, those are the three cohorts that are increasingly deciding a move to Vero Beach is smart for them.

So, let's drill down with a little more specificity about these cohorts. Let's talk about South Florida. One of the main reasons people are able to leave South Florida and come north is many sellers that are coming north have tremendous equity positions. Thanks to the amount of time they've owned the houses and COVID run-ups in values. So, they're able to sell with a big number, take that equity, come north to Vero Beach, and quite often don't even feel like they're settling, because don't forget our housing is about 40% more affordable. So, there's none of this, I've sold and now I've got a compromise.

It's also true that the cost of living and congestion have started to push people north. So, it's not only cost of living and affordability, it's insurance, crime to some degree, things that come as a city develops and grows and gets bigger. So, all of those reasons are behind South Florida coming up north to Vero Beach. So, in a nutshell, slower pace, no downside to what you're buying because we're 40% more affordable. So, you don't have to downsize and downgrade that so many people feel like they must do if they want to downsize.

It's just not a thing. We have less congestion, a vibrant art scene. So, there's very little concession that these buyers are feeling that they have to make. Quality of life is still super strong and they can choose a variety of housing options, all of which give them the quality of life and standard and built caliber to which they were accustomed. And let's talk about the equity play. If you're selling a bigger number and you've got that money because you have a strong equity position in where you sold, you take that cash and you only need to reinvest 50 or 60% of it, that leaves you in a very strong position as well in terms of a cash preservation play, which is also a really strong motivator, particularly as those of us that are aging or starting to say, I need to set up for maybe years when I'm not working and I want to make sure my investment strategies and my cash and my assets are making money for me when I'm not working.

So, what do they see when they come up and they do the exploratory tour? Could we do this? Well, first of all, we're still within the tropics. And so, when folks come up from down south and they look here, what do they find? They find kind of what they remember Palm Beach and Delray maybe looked like 20 or 30 years ago, but we still do because we've got the policy to keep it in place, low density, height restrictions, not a lot of commercial zoning permitted, very little multi-fam develop. Yet, what they come is they see a charming island, a wide river that's an estuary, you might see a manatee or two, 28 miles of Atlantic beaches, and very little crowds, very vibrant arts district, beautiful golf courses.

There's a lot to say about making the move north that makes a lot of buyers say yes to coming up to Vero Beach. So, increasingly savvy buyers are putting Vero Beach on their radar. So, let's talk about what these buyers are actually buying. Increasingly, what they want is a lifestyle experience. What does that mean broadly? Well, it means they don't want to come down or up or over and have to embark upon a major renovation. When they get here, they want a move-in ready house that's easily insured, that offers amenities that are important to them.

So, increasingly, what buyers want is move-in ready, easy to say yes to. And give me a reason to say yes to you versus your neighbor down the road. And don't forget, this is not just Vero, they've all been unbelievably influenced by. So, neutral is king, move-in ready is everything in case you're a seller and you're thinking about going on the market. Well, that's where they're buying. Where they're buying depends on what's important to them. So, how are they buying? 80% of our deals on the barrier island are cash. It means that when they write a contract, there is no condition for them to obtain financing.

Or, if they can't get approved, they terminate. And buyers often come to town thinking that that gets them some giant discount, and I'm sorry to tell you, it's just not a thing. It's more the norm than not. So, what is all this really going to cost you if you're thinking about making a move? Depends where you want to be. The island, the value of the land, makes prices more expensive. So, if proximity is the amenity that's most important to you, you may want the barrier island so you can walk and bike to everything, even if you're not on the ocean or the river.

All of our beaches and river accesses are completely free. If you don't care about that kind of proximity, you will get more bang for your buck on the mainland. We've got the island, six bridges, mainland. And increasingly, one of the things that we're seeing as a trend, if you will, is going off the island. Just off in between those same bridges, there's a whole host of communities along Indian River Boulevard, up a causeway known as 53rd, that offer customers and buyers really good options for newer houses, 5-10 minutes to get onto the bridge, 15 minutes you can be on the beach.

And not only are you typically getting a newer house, you're also probably paying 30 to 40% less than if that same house were on the barrier island. So, like anything in life, it depends on what your priorities are and what's most important to you. So, what pitfalls can I offer you? What pro tips can I offer you from 22 years of experience so you don't make a really expensive mistake? Number one, please align yourself with a local real estate advisor. Of course, I'd love it to be me, DM me, we can talk.

Somebody that's licensed and familiar with Vero Beach. I cannot tell you how often I will see a broker from out of area. And this is not a judgement, it's an observation. From Fort Lauderdale, Miami, Boca Raton, coming up and they're saying to me, "Well, what do you think about this neighborhood?" They know nothing about it. Why are these buyers working with these people? I would no more try to represent a buyer down in Fort Lauderdale or Boca Raton than forget it. I would refer it out. I would do them a disservice.

A local broker is going to know the nuanced knowledge of the neighborhoods, what the deal is, what the trends are, what the builders are all about, so you don't make an expensive mistake in terms of either the community that you buy or frankly the price you pay. So, hitch your wagon to a local real estate advisor. I cannot recommend it strongly enough. And if you have loyalty to somebody that's not in our market, I totally respect that. I prize loyalty myself. Ask them for a recommendation. And then in case you don't know how this behind-the-scenes business works, an out-of-area broker can also be compensated for making an introduction called a referral to another broker.

You're taking care of that person and you're not ditching them. They're going to get some recompense if you do a deal, but you are hitching yourself to somebody that knows the area and is going to give you the best advice so you can make the very best decision for yourself. The second thing is when you choose a trusted advisor that's local, they will make sure that you understand not just the house, the context of the neighborhood. So, it matters. Context matters. It may look great on the internet. What's the dealio with the whole neighborhood, the vibe, the context?

How does it live? Cuz it doesn't exist in isolation. It exists in context of your neighborhood. So again, using a local broker that understands all of these micro markets can help you figure that out. Real estate is incredibly hyperlocal. Don't look at the news about Florida. Look at the news about the specific community of interest to you. And then even when you're in a specific community, Vero Beach for example, your wagon to a trusted advisor and understand the micro markets cuz it's incredibly nuanced. And that knowledge will be your superpower.

That and your relationship with somebody who's boots on the ground like me to make sure you don't make a mistake that you live to regret. And what I would say about this market right now, broadly, there's not a lot of activity. We're sort of in a tepid market. Sellers are kind of pulling back, buyers aren't really sure what they want to do. If you're at all interested in making the move from Chicago or Detroit or Greenwich, Connecticut or South Florida or Palm Beach and you're exploring it, explore. You don't need to do anything, but he who jumps into a market when no one else is buying has the power at the negotiation table and often is able to strike a very good deal indeed.

So, if you're interested in starting the exploration, reach us through our contact form. My information's down below and we can figure it out together.