A new study revealed that Star Island, an artificial island in Miami Beach, Florida, became America’s most expensive neighborhoodwhile New York City housing where prices don’t dip below $1 million, is declining.
With increased demand from wealthy buyers, Miami now boasts some of the most expensive neighborhoods in the country. Even it came to surpass the real estate values of the coveted areas of New York and California.
Median home value on Star Island reached a staggering US$40.2 million in December 2022representing a 71% increase compared to $23.5 million just three years ago.
The island is located in Biscayne Bay and is connected to Miami Beach by a bridge. Destination of luxury houses and impressive mansions, this enclave is home to celebrities like Shaquille O’Neal, Gloria Estefan and Rosie O’Donnell. In addition to the houses, Star Island boasts a number of tourist attractions, including a private beach, a marina, and the famous LIV nightclub, which attracts celebrities and tourists from all over the world.
Hedge fund billionaire who runs the Citadel, Ken Griffin, bought five Star Island properties for a combined $194 million, helping the neighborhood topping Zillow’s list of America’s most expensive neighborhoods. In general, the Miami metropolitan area experienced a 160% increase in the number of $1 million ZIP codes from 2019 to 2022.
On the other hand, New York saw a decline in the proportion of neighborhoods where the median listing price of a home is at least $1 million. Marble Hill, the northernmost neighborhood in Manhattan and the only part of the borough that is physically attached to the Bronx, saw typical home prices drop from $1.81 million in 2019 to $1.24 million in 2022, what represents a drop of 32%.
Washington Heights also suffered a 20% decline in home values, going from $1.39 million to $1.12 million in December 2022. Those looking for a property on Manhattan’s Upper East Side would have had to pay $8.31 million three years ago. In December 2022, that number dropped by 9% to $7.58 million.
The neighborhoods of San Francisco, including Polk Gulch, Mission Dolores, Lower Haight and South of Market, also experienced double-digit percentage declines in home values over the past three years, according to Zillow. In general, New York and San Francisco were hit by a decline in quality of life which local residents blamed on rising crime rates, homelessness, high taxes, and the increasingly unaffordable cost of living.
Florida, Texas and other states in the southern region were those who benefited most from a significant increase in migration in recent years, thanks to an overall lower cost of living, warmer weather, looser COVID restrictions, and a friendlier business environment. Federal government data shows that Florida recently surpassed New York state in the number of non-farm jobs for the first time in 40 years.