2023-11-17 18:38:51
American inflation has finally lost strength, and the conviction is growing in the market that the Federal Reserve will not need to tighten interest rates even further.
But in Miami the scenario is different. Price adjustments continue to boil – and, according to Bloomberg, the explanation for this is the massive arrival of new residents in Florida, putting pressure on housing costs.
Annual inflation in the Miami metropolitan area was 7.4% in October, more than double the national average. In Tampa, the rise in prices also remains intense, with a variation of 6.7%.
Since last year, Florida has been at the top of inflation indexes and, unlike other regions, it has not yet seen a significant slowdown in adjustments.
According to Bloomberg, Phoenix and Atlanta were also, until last year, two hot spots inflationary. But in these cities the rate of adjustments has already dropped to 3%.
“People want to live here, and that seems like a promising thing for the future of Florida,” William Luther, an economics professor at Florida Atlantic University told Bloomberg. “But the trade-offof course, is that adjustments take time to happen, so we have price increases in items such as housing costs.”
The sunny climate and lower taxes are attracting not only Latino immigrants to Florida, but also billionaires like Jeff Bezos and Ken Griffin. Investment companies are expanding their operations in the state – as was the case with Goldman Sachs, Blackstone and Citadel, from Griffin.
Griffin, who left Chicago to settle with his family in a $107 million mansion in Coconut Grove, said Miami might one day displace New York as the country’s largest financial center.
“Miami represents the future of America,” said the investor, according to the NY Post, during his presentation at a Citadel conference, held in Miami, last week.
“We’re in Brickell Bay,” Griffin said of Citadel’s new location, with its more than $60 billion under management. “Maybe in 50 years we will talk regarding Brickell Bay North like we talk regarding New York today in finance.”
Another finance billionaire who embraced the ‘Sunshine State’ was Paul Singer of Elliott Management. In 2020, at the height of the pandemic, Singer decided to leave behind his office overlooking Central Park, in Manhattan, and moved the headquarters of his fund – with more than US$40 billion in assets – to West Palm Beach.
Florida hasn’t just become a magnet for billionaires and celebrities like Lionel Messi, Tom Brady, Pharrell Williams, Shakira and LeBron James. According to Bloomberg, the state only lost to Texas in population growth last year. In terms of percentage advancement, it ranked first.
This influx of new residents impacted rent values, which rose 12.9% in Florida compared to last year, once morest a national average of 7.2%. The price of electricity rose 11.5%.
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Giuliano Guandalini
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