Florida's influx of rich residents is killing the middle class and housing market

For decades, the Sunshine State has been seen as, well, sunny and bright. Florida has no income tax, and many metros had a cost of living that allowed for the working class, like teachers, nurses, and hospitality workers, to build a comfortable, middle-class lifestyle.

But times are changing.

The pandemic ushered in a massive wave of wealthy transplants, forcing home prices higher and making the Sunshine State one of the biggest losers in today’s housing market.

Florida gained more wealth from high-earning transplants than any other state in 2023, according to Internal Revenue Service data. The Sunshine State gained $20.65 billion in annual adjusted gross income from tax filers who moved there from another U.S. state, a Realtor.com analysis published March 27 shows. The average income of people who moved to Florida from another state was $122,530, the highest among all U.S. states, according to Gay Cororaton, chief economist for the Miami Realtors.

“This wealth migration has been the primary factor driving up prices, with prices continuing to climb due to strong demand, even when mortgage rates started to hit over 5% in 2022 and as rates have remained elevated to over 6.5% to date,” Cororaton told Fortune.

Read more: https://fortune.com/2026/04/26/florida-influx-rich-residents-dissolving-middle-class/