For First Time, Miami Is More Expensive Than NYC

Miami's long-running pitch as New York's cheaper, sunnier cousin just hit a snag. Federal data show the Miami metro area is now pricier than greater New York for the first time ever, with South Florida's cost of living up 36% since 2019—one of the biggest jumps in the country, reports Bloomberg. A Bureau of Economic Analysis index now ranks Miami as the nation's second-most-expensive metro area—behind only San Francisco. For the record, the Miami-Fort Lauderdale-West Palm Beach area came in with a ranking of 114.155, compared to 112.563 for the New York-Newark-Jersey City area, per USA Today.

One factor in the milestone is that overall housing costs about 5% higher than in New York and its suburbs. Home prices have climbed 79% since the pandemic, property taxes are up 62% since 2019, and Florida's hurricane- and flood-driven insurance premiums are already about four times New York's, with further increases expected. The squeeze, however, goes beyond housing. Private-school tuition, restaurant tabs, and everyday expenses have all climbed—OpenTable data show Miami diners spending more per person than New Yorkers.

Yet paychecks haven't kept pace, with typical household income slightly below the US median and professional salaries trailing New York's. Longtime residents and newer arrivals alike report being priced out of neighborhoods, even as billionaires and hedge fund executives continue to snap up property. "People get blinded by the absence of state income tax," a financial planner tells Bloomberg, warning that the tax savings will get "wiped out" by other costs.