COVID Pushed People, Banks and Hedge Funds to Florida — Now They’re Coming Back
In the heart of the pandemic, several financial service firms, including big names like JPMorgan Chase, explored the thought of leaving New York. With people working from home, or even from other states, and restaurants, museums and entertainment closed, Wall Street, just like most of lower Manhattan, had become a ghost town.
Investment firms and hedge funds that included Elliott Management Corp., Citadel and Point72 Asset Management, announced plans to open offices in Florida, Bloomberg reports. Virtu Financial Inc. CEO Doug Cifu moved from New Jersey to Palm Beach Gardens, Fla., Bloomberg says. And Tiger Global Management partner Scott Shleifer purchased a $132 million house in Palm Beach with plans to live there.
But U.S. Postal Service numbers belie the anecdotal data. Only 2,246 people filed a permanent address change from Manhattan to Miami-Dade County, with another 1,741 moving to Palm Beach County, Bloomberg reports. While this doesn’t account for those who lived in surrounding suburbs or the other boroughs and commuted daily to the Big Apple, it only amounts to 9% of all out-of-state moves for Manhattanites. That’s just a 3% increase from 2019, Bloomberg says.
The same postal data showed that New Yorkers were more likely to relocate last year to Jersey City or Hoboken, N.J.; Los Angeles, Calif.; Chicago, Ill. and Philadelphia.
However, the impact on New York City income could be significant, Bloomberg says. The top 1% of wage earners in New York earned $133.3 billion in total, accounting for 42.5% of the city’s taxes, according to the Independent Budget Office.
What’s more, Forbes reports, many companies and their leaders who did leave may be set to return soon. This could be a “strong sign the pandemic is ending,” Forbes reports.
Jason Mudrick, the founder of Mudrick Capital Management, is one executive with an optimistic outlook. “It will be like the Roaring Twenties — you’ll see a resurgence here like never before,” he said in a Bloomberg interview.
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