Millionaires driven from Miami and Palm Beach by the influx of billionaires have settled in another Florida city: Fort Lauderdale.
Super-rich people like Jeff Bezos and Ken Griffin have bought up homes in Miami and Palm Beach, driving up property prices and wiping out the less wealthy.
Millionaires have therefore created a lavish enclave in Fort Lauderdale, where thousands of college students celebrate spring break.
The influx of millionaires to the city has led to an explosion in mansion construction and a rise in house prices.
Millionaires driven from Miami and Palm Beach by an influx of billionaires have settled in another Florida city: Fort Lauderdale
Millionaires have created an enclave in Fort Lauderdale where thousands of college students celebrate spring break
An extravagant estate with a pool deck covered in AstroTurf recently went on the market for $47.9 million, a 60 percent premium over the price it was purchased for just 16 months earlier.
Another posh home in the neighborhood is for sale for $50 million, a price that would have been nearly unthinkable a few years ago.
There is also a beachfront mansion for sale that fetched $40 million in 2023, a local record at the time.
Now the same property is listed for $47.5 million.
Frederik Elkund, who distinguished himself as a house hunter for the super-rich in places like New York and Los Angeles before moving to South Florida, called the trend “exciting.”
The influx of millionaires into the city has led to an explosion in mansion construction and a rise in house prices
There’s also a beachfront mansion on the market that fetched $40 million in 2023, which was a local record at the time
“People are being priced out of Miami and Palm Beach,” he said Bloomberg.
He continued, “It’s popular with people from the Northeast who want to get a foothold in South Florida but don’t necessarily want something really big or expensive.”
Fort Lauderdale, located between Miami and Palm Beach, has shed its typical spring break status and become a haven for millionaires desperate for cheaper ways to park their superyachts.
The dramatic increase in the number of billionaires in Miami and Palm Beach has led many millionaires to seek refuge in suburban areas such as Palm Beach Gardens and Boca Raton.
Before the pandemic, the most expensive home ever sold in Fort Lauderdale fetched $17 million
This has impacted real estate prices across the state, including the panhandle. Earlier this month, a beachfront mansion in the area sold for $28.5 million.
Before the pandemic, the most expensive home ever sold in Fort Lauderdale fetched $17 million.
According to Zillow, there are currently 18 homes for sale for a higher amount.
The average home in Fort Lauderdale costs $530,000, up 59 percent from 2019.
Notable new homeowners in the city include Lionel Messi, who paid nearly $11 million for a property near the Inter Miami CF stadium.
The migration of millionaires has also changed Fort Lauderdale’s economy somewhat.
The migration of millionaires has also changed Fort Lauderdale’s economy somewhat
A Michelin-starred chef opened a new restaurant at the posh Four Seasons hotel, while a lavish waterfront hotel has put its newly renovated penthouse up for sale for $15.5 million, which would be a record sale for an apartment if someone bought it for that price.
“Believe me, I didn’t think Fort Lauderdale would fetch these prices,” said Rick Teed, the real estate agent selling the mansion with the AstroTurf pool deck.
“I was just as surprised, but the market is changing,” he said Bloomberg.
Anthony DeGradi, who represents Teed, bought his Fort Lauderdale estate last year for $29.5 million.
Fort Lauderdale, located between Miami and Palm Beach, is now shedding its spring break identity and becoming a haven for millionaires desperate for cheaper ways to park their superyachts.
DeGradi, owner of the Surgicore network of surgical centers in New York, invested an additional $100,000 in the property after the purchase.
Hoping to capitalize on the high demand in the area, he is now offering the property at a price 60 percent higher than what he bought it for.
“Once someone comes to Palm Beach and starts looking, they realize they’re priced out of the market,” Teed said Bloomberg.
“They’re going to see that the prices in Miami are ridiculously high too. So they’re going to decide to save $10 million and move to Fort Lauderdale.”