NYC mansion tax driving more New Yorkers to Florida, real estate agent says
A recent change to New York City’s so-called mansion tax is driving residents from the Empire State to Florida, according to real estate expert Samantha DeBianchi.
The progressive tax, which went into effect on Monday, means that those making real estate purchases of more than $1 million will be faced with a levy that can climb as high as 3.9 percent.
“The people from the Northeast are driving our home sales,” DeBianchi, a real estate agent in Florida, told FOX Business’ David Asman on “Varney & Company.”
According to data from the U.S. Census Bureau, Florida received more movers than any other state in 2018 – and many came from New York.
“In Miami-Dade, Palm Beach and Broward counties we actually saw homes sales increase anywhere from 3.9 percent to 6.6 percent – and that is because of all of our New Yorkers coming down here to sunny South Florida,” she said.
In addition to recent tax hikes, a $10,000 cap on state and local tax (SALT) deductions has resulted in an exodus of residents from high-tax states – like New York and New Jersey – to lower-tax areas such as Florida and Texas.
DeBianchi added that lower interest rates should encourage people to jump into the housing market.
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“Now is a great time to buy for anyone, whether you’re in the luxury market or a first-time homebuyer. I mean, with rates as low as they are, prices, I think, are slowly coming down a bit, which is a win-win for everyone.”