00:00For more on how Miami allegedly got so pricey, we're joined once again by our resident Miamian.
00:06Miamian?
00:07I think that's the right demon.
00:07You can correct me if I'm wrong.
00:09Senior Commodistratist Mike McGlone.
00:11Mike, you used to live in New York, right?
00:12You made the move.
00:12Are you one of these people who defected to Florida?
00:15What is your take on all this?
00:17Well, the bottom line is from the top down.
00:20In New York, if you get a $100,000 bonus, the state of New York and the city of New
00:25York
00:25off the top take 16%.
00:27In Miami, it's zero.
00:30That's an unstoppable force.
00:31So everything else is kind of catching up to that.
00:34Okay, but there's other—I'm sorry, go ahead, Jason.
00:35No, you go ahead.
00:36There's other costs associated with living with Florida.
00:39Our reporter found you've got to think about things like property insurance, and also you
00:43have to have cars, and you have to have multiple cars because you can't get away, get around
00:47anywhere else.
00:48And if you're trying to be cool, you're probably spending a lot on those cars.
00:51You're getting a nice car.
00:52Aren't there all these other little expenses that add up?
00:55Well, I think you nailed it there.
00:56If you're trying to be cool, it's expensive.
00:58But if you're like me and just try to go under the radar and you commute on a bike to
01:02the
01:02office that's nine miles on bike paths, it's ideal.
01:06You don't have to pay tolls.
01:07You don't have to worry about traffic.
01:08And you get to look at all those people sitting in traffic and say, yeah, sucks to be you.
01:12I'm good, and I'm not in traffic.
01:13But the key thing is, bottom line, though, it's also the weather for six months of the year is nice.
01:19But one thing I think is really happening in Miami, and I've noticed, it's really catching up.
01:23Obviously, there's the traffic.
01:25But one thing also I've heard from a real estate standpoint, it's like we somewhat peaked here and
01:29started to head low.
01:30And I had, lucky enough, Bloomberg let me come here in 2021.
01:33The thing is, we're expanding.
01:35But the bottom line also, from our standpoint, is this is where a lot of sales are.
01:38We're getting more and more sales there.
01:40And the reason it's things like Ken Griffin coming is because the tax treatment's better.
01:44I look here at the cost of insurance, a huge consideration as well because of hurricanes
01:48there and in this piece.
01:50The highest home insurance premiums in the nation, an average of $8,292 last year.
01:55That's according to Insurify estimates.
01:57Mike, I know you're very familiar with Coral Gables and South Miami and Pinecrest, all
02:02the high-toned neighborhoods in Miami.
02:05He bikes around all of them.
02:06Bikes around the property.
02:08I do.
02:08But what are your observations just about how much property prices have skyrocketed here?
02:13I saw an analogy in the piece here that if you're buying one of those houses on a square
02:17foot basis now, it is kind of comparable to what you might pay here on the Upper East Side
02:21in Manhattan.
02:22The quote I heard from a prominent real estate person I heard, his quote was,
02:27if I could short Florida real estate, I would.
02:29I think it's very peakish.
02:31The one thing you also notice is the construction cranes are everywhere.
02:35I noticed that I travel a lot lately to Chicago and Philadelphia and there's no construction
02:40cranes, but here they're everywhere.
02:42And that's usually a classic sign of a peak.
02:44So I think we're near a very peak type activity.
02:48But also key thing is remember Miami and Florida kind of leads the country.
02:52If it starts heading lower, it's a high beta.
02:55The rest of the country heads downward.
02:57But for now, it's also summer.
02:59It's not the time to be here.
03:00Come to when the weather gets bad and like it did last winter in New York, people flock
03:04down.
03:04The snowbirds will flock down, Christina.
03:06I mean, I'm kind of arguing against myself here as I look at some of these numbers, because
03:11I having just moved to New York from D.C., which I thought was a fairly expensive city.
03:15I grew up in Colorado.
03:17The price of things here has just really caught me off guard.
03:20But when you look at what Miami is now charging, I mean, the CPI in Miami has jumped 36%
03:25since
03:262019.
03:27When you look at home falls, this article says until recently, if you moved, like Mike
03:33did, from New York to Florida, you could expect this huge windfall from selling whatever your
03:38property here was and investing it down there.
03:40But that's getting harder and harder to do, because you're getting premiums on these Florida
03:44real estate.
03:45The one thing I will say, though, is you get more square footage still in Miami for the
03:50price.
03:50And if you are trying to afford New York, even if you own your place, you are still
03:54paying these astronomical condo fees.
03:56I mean, I know somebody who owns their place outright, but their condo maintenance fee is
04:00like 5K a month, which is insane to me.
04:04Is that still the case in Miami?
04:06You still are not dealing with homeowner fees?
04:09Well, homeowner fees, yes.
04:10But I mean, Mike, form words.
04:14I'm clearly not forming them.
04:14But what's your take on that?
04:15Is it still better to get an apartment in Miami?
04:17It's cheaper or it's not?
04:19I like the year-round factor.
04:21I can live by a beach and commute nine miles, and year-round, I don't have to wear boots and
04:26a hat and gloves all the time.
04:28But one thing that happened right away, Anadona, is I did get hit with assessment.
04:31The first we moved in, partly because of what happened in Surfside, fully expected that.
04:36But now it's like, where do we go from here?
04:38And I think one thing is, the thing is, we've leveled out.
04:41And the bottom line is, where's the migration?
04:44Most that's happening in this country, it's not just New York.
04:46I'm actually originally from Chicago.
04:48It's a migration away from high-tax states towards lower-tax states.
04:53To me, that's an unstoppable force.
04:54It looks like Miami's somewhat probably peaked for a while at such high levels.
04:58Mike, let's talk about food.
05:00In this piece on the terminal, there's a great line.
05:02It's either Carbone or Cubano.
05:04That there's not much in the way of kind of mid-grade options here when it comes to food.
05:08So as you've kind of navigated your new city, do you find that to be true?
05:13Have all the ancillary things kept up with the building of residential towers and commercial towers?
05:20I think so.
05:21I have never had a problem getting good food at a decent price.
05:24Now, everything's gone up, but I guess I'm kind of lower-ends.
05:28I don't wait in line at restaurants.
05:30Typically, if I have to make a reservation, my wife does that.
05:33But no, I'm good with that.
05:34I haven't found a major difference.
05:36And it's just the—I don't find that much difference.
05:41It also depends on your level.
05:42Like, if you're not trying to be cool, which I'm not, I find no problem with the food.
05:46I just—I love that you ride a bike.
05:48I would not have had that on my pegboard for you.
05:50I'm wondering—it is a fun story, but I'm wondering what this rise—and gentrification is almost the wrong word, but, you
05:57know, these high rises and this higher standard of living in Miami.
05:59Just urban growth, yeah.
06:00Urban growth.
06:01It has done for—we're talking on a very high end here.
06:04I'm wondering if this is putting the squeeze even more on medium-income and lower-income families and communities that
06:10make Miami kind of what it is.
06:12It certainly is.
06:13One thing that's a fairly clue in Miami that I actually love is I am a gringo in many parts
06:18of Miami.
06:18I mean, language—the first language is Spanish.
06:20Now, you go to Fort Lauderdale, the first language is English.
06:22But I do enjoy that.
06:24I enjoy the multicultural environment, but it's getting much harder for your average person.
06:29If they don't own a place, if they own a home that's from 20 years ago, those homes have gone
06:33up a lot.
06:34But if you're just renting, yeah, they're starting to fall behind.
06:36It's getting more and more difficult.
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