The Billionaire Exodus: How Miami Is Becoming the Premier Wealth Hub Amid California's Proposed Wealth Tax

The proposed 5% wealth tax on ultra-high-net-worth individuals (UHNWIs) in California has triggered a seismic shift in the geographic allocation of capital, with Miami emerging as the most prominent beneficiary. As of early 2026, at least six billionaires-including Google co-founder Larry Page and PayPal co-founder Peter Thiel-have relocated or shifted business operations to Florida, driven by the looming tax deadline of January 1, 2026. This exodus, accelerated by the retroactive nature of the tax, has not only reshaped the tech and venture capital landscapes in California but has also catalyzed a surge in luxury real estate demand in Miami's premium neighborhoods, particularly Coconut Grove.

The Migration of Tax-Sensitive Capital

The California wealth tax, targeting individuals with net worth exceeding $1 billion, has forced UHNWIs to reevaluate their residency and asset management strategies. According to a report by , at least six billionaires have severed ties with California, with approximately 20 more considering similar moves. Larry Page, for instance, has invested over $173 million in Miami real estate, while Peter Thiel has expanded his presence in South Florida by opening a new office in Wynwood. These relocations are not merely symbolic; they reflect a strategic reallocation of capital to jurisdictions with favorable tax policies.

The impact on California's economy is already evident. Critics warn that the departure of key players in venture capital and tech innovation could disrupt startup ecosystems and reduce the state's tax base. Meanwhile, Miami has become a magnet for this displaced capital, with luxury real estate agents reporting a sharp rise in ultra-wealthy California buyers.

Reshaping Miami's Luxury Real Estate Market

The influx of UHNWIs has directly influenced Miami's luxury real estate dynamics, particularly in Coconut Grove. Data from 2025 indicates that the median sales price for luxury condos in Coral Gables and Coconut Grove rose by 14.1% year-over-year to $1.8 million, with price per square foot climbing to $855. The absorption rate in September 2025 stood at 4.2 months, signaling a tightening market across Miami-Dade and neighboring counties.

Ultra-luxury properties ($10M+) have seen a surge in demand, driven by wealth migration and Florida's tax-friendly environment. In 2025, the market closed nearly 426 transactions, nearing the 2021 record. Coconut Grove, in particular, has become a hotspot for pre-construction developments offering branded residences with amenities like private lounges and wellness facilities according to local development reports. Single-family homes with waterfront access have also appreciated sharply, as buyers prioritize privacy and large plots of land as property data shows.

Expert Projections and Infrastructure Developments

Looking ahead, expert projections reinforce Miami's appeal as a long-term investment destination. A 2025 market analysis by notes that Coconut Grove's real estate will remain strong through 2030, fueled by its walkable streets, top-rated schools, and family-friendly amenities. While inventory in the $3M–$6M segment has risen, the $1M–$3M range continues to see robust demand due to low inventory and increasing sales according to market data.

Infrastructure improvements further bolster the investment case. Developers are prioritizing sustainability, with eco-friendly buildings featuring LEED certifications, solar panels, and energy-efficient designs gaining traction. These developments not only enhance quality of life but also align with the preferences of UHNWIs seeking both environmental responsibility and long-term value.

A Compelling Investment Case

For investors, the convergence of tax-sensitive capital flows, rising property values, and strategic infrastructure developments in Miami presents a unique opportunity. Coconut Grove's luxury market, already outperforming broader trends, is poised to benefit from continued wealth migration. As California's proposed wealth tax remains a contentious policy, the exodus of UHNWIs is likely to persist, further solidifying Miami's status as a premier wealth hub.

In conclusion, the geographic reallocation of ultra-high-net-worth assets underscores Miami's growing role in the global economy. With its tax advantages, cultural appeal, and resilient real estate market, the city offers a compelling case for investors seeking to capitalize on the shifting landscape of wealth distribution.