Tech Companies are Moving to Florida, and So Should You by Omid Hariri Vijeh

Tech Companies Are Moving to Florida, and So Should You

by Omid Hariri Vijeh

The Sunshine State is starting to look like California as tech companies begin moving to Florida’s beach cities. According to a report by CompTIA, a non-profit IT trade association, Florida welcomed more tech businesses than California in 2021. Florida added 10,522 tech jobs, more than California’s 5,165. Florida tech jobs are high paying too, with a median salary of $79,397, 113% higher than the median state wage.

So why are tech companies moving to Florida? To start, Florida’s corporate income tax is a flat rate of 5.5% whereas California’s is 8.84%. Florida is pushing to become a business-friendly state through incentives to High Impact Sectors, including technology and financial services. Florida’s economy now ranks #8, 2 above California. While Florida’s venture capital investments are $2.59 per $1,000 GDP vs. California’s monstrous $21 per $1,000 GDP, it would not be surprising to see Florida’s VC investment economy increase in the coming years. In 2021, Florida companies raised over $1B in VC funding. This year, BlackRock announced its investment and move to West Palm Beach, FL. Odds are more PE firms will follow.

While “Florida Man” has “meme-ified” the state, Florida is a financial paradise for remote tech workers looking to get more out of their investments while enjoying a tropical climate. The State does not levy property taxes, but leaves discretion to local jurisdictions to levy them as needed. Florida does not levy personal income taxes nor capital gains taxes, making it a strong economic option for tech workers looking to make a move and invest.

Floridians in high paying tech jobs should consider investing in Short- or Long-Term Rentals, since the Sunshine State earns a large sum of its revenue from tourism. Miami, Tampa, and Ft. Lauderdale have light STR regulations. Orlando, however, restricts property owners from STR’s of their entire home. Florida’s absence of rent control laws gives greater discretion to property owners to base rental rates on market conditions and demand. According to Visitflorida.org, hotel average daily rates YTD is up 25.1% and occupancy rates are up 12.2% since 2021. While these numbers reflect hotels, visitors often pick STR’s to accommodate more guests or to fit budgets. According to Mashadvisor, the Florida Airbnb host community grossed $1.2B+ in 2019 and currently has a 58% average occupancy rate. If the STR numbers aren’t convincing, consider the increase in high paying jobs and influx of high-income earners. Florida’s population increased 1.1% between April 2020 and July 2021, resulting in increased demand for housing.

There is a great migration to Florida. High paying jobs are flooding the market and financial institutions are recognizing it. Florida’s healthy tourism, gorgeous beaches, year-round sunny weather, and minimal tax and rental regulation market make it a prime destination for visitors and investors alike. If you could be working and investing remotely from anywhere, why not do it by the beach?