Miami confronting new reality after decade of growth

Writer: Mirella Franzese

June 2025 —  In just a decade, Miami has grown from a popular tourist and retirement destination to a global hub for tech, finance, and innovation, attracting some of the world’s largest multinational firms and wealthiest investors.

Miami-Dade County’s favorable tax environment, vibrant lifestyle appeal, and beautiful weather form one of the most attractive markets in the United States. In 2024, over 16,000 new residents moved into the city of Miami. 

This rapid population growth, combined with new infrastructure, private investment, and the rise of key industries — such as finance, healthcare, and technology — has positioned Greater Miami as one of the fastest growing U.S. economies, accounting for 90% of all economic activity in the South Florida region.

But despite this record decade of growth, Miami now faces major hurdles as the public and private sector attempt to sustain the momentum for the long-term.

“High growth comes with new challenges, from affordability and infrastructure, to talent attraction and retention,” said Greenberg Traurig’s John Owens, who moderated the opening panel at the Invest: Miami 10-year anniversary leadership summit, which gathered industry executives at the Mr. C Hotel in Coconut Grove on June 12 to discuss what’s next for the city and region.

“The question now is how do we maintain that momentum in a time of economic uncertainty and rising demands on infrastructure, housing, and transportation,” Owens said. He was joined by panelists Mayor Alix Desulme of the City of North Miami, Mónica Vázquez of ABANCA USA, Yesenia Sanchez of Cigna, and Jimmy Tate of Tate Capital.

Development activity has already slowed this year due to elevated construction and insurance costs, said Tate. High interest rates and tariffs limit financing, while public incentives like federal grants and CRA funds fall short of the capital needed to keep pace with demand. 

“The cost of housing has hit peaks that are not sustainable for most people,” said Tate. As a result, Miami faces what he described as a ‘rent seal’ — developers can’t afford to build, and many residents can’t afford to rent.

Affordability could drive out talent, particularly young professionals and graduates from Miami’s local universities. Many are relocating to more affordable states like the Carolinas or Tennessee, where housing supply is higher and purchasing power is stronger.

“People want to be here, but the cost of living is very high,” noted Vazquez. 

Higher housing costs could also hurt Miami’s overall appeal for workers. The largest migration to the region comes from places with higher tax burdens and housing costs, such as New York City, San Francisco, Los Angeles, and New Jersey. And while the city’s favorable tax environment is still key to driving corporate relocations, businesses with new offices in Miami could be struggling to adequately house their employees or convince them to switch addresses, leading to a loss of talent.

Cities like Miami and Tampa are already experiencing notable outward migration in 2025, according to a report from the moving & storage company PODS.

Moving trends from January 2024 through March 2025 showed that previous hotspots, like Florida and Texas, have cooled down, compared to two years ago. Although, overall migration to Miami-Dade County still remains higher than pre-pandemic levels. 

Part of the solution is to bolster the larger Miami-Dade community by making major strides in innovation, economic diversification, and quality education, according to Mayor Deslume.    

“You need to give back to the community you develop in,” said Deslume, who highlighted the city’s recent development and upskilling efforts.

He also highlighted that Miami’s economy is resilient, regardless of ongoing struggles, and well-positioned for long-term growth due to its robust infrastructure.

“We’re usually the last to dip and first to come out of an economic recession or crisis,” Deslume said.

To access the Invest: Miami 10th Anniversary Edition report, click here. (Subscription required.)

For conference panel discussions, please subscribe and stay tuned to our YouTube Channel as those videos are released in the coming weeks.