Regional Review: Palm Beach rises as a financial and innovation hub
Regional Review is a year-end series from Capital Analytics that looks at key developments throughout the year and sets the stage for what’s to come in the near term.
December 2024 — Palm Beach County’s transformation into a financial powerhouse has solidified its status as a key economic hub in the country, with the relocation of hundreds of financial firms fueling a surge in wealth, innovation, and real estate growth. As industries from life sciences to logistics expand alongside new educational investments, the region is redefining itself as a magnet for business and investment, setting the stage for continued growth in 2025.
“Palm Beach County has emerged as a magnet for financial services companies, earning it the moniker Wall Street South,” said Kelly Smallridge, president and CEO of the Business Development Board (BDB) of Palm Beach County to Invest:. “In the last 12 to 18 months we have seen wealth coming into Palm Beach County through financial service firms that are relocating from Boston, Chicago, and New York, which has transformed the downtown West Palm Beach area.”
The wave of relocations includes notable expansions by financial powerhouses. JPMorgan Chase & Co. underscored West Palm Beach’s growing prominence as a financial hub in 2024 by announcing plans to open a new 13,000-square-foot office in the city. This move is part of the bank’s broader expansion in South Florida, which includes doubling its Miami office space and adding 400 employees.
By growing its significant presence in the region, JPMorgan joins other major firms like BlackRock and Goldman Sachs that have opened offices in Palm Beach in the past few years, further establishing the city as a cornerstone of the growing Wall Street South movement.
The financial migration has accelerated after the pandemic, with firms like Blackstone and Citadel establishing significant operations in the region. Collectively, Palm Bach County now boasts over 300 hedge funds and private equity firms, nearly 40% of which have relocated in the past four years.
With an annual economic impact of nearly $7.53 billion and 73,989 direct jobs, Palm Beach County’s financial sector is a powerful engine of growth. As of last year, the industry offered an average salary of $101,829, further fueling the local economy. Over the past few years, approximately 250 financial firms have relocated to the county, drawn by its business-friendly environment and growing reputation as a financial hub.
This economic momentum is reflected in the region’s GDP growth and overall wealth. Palm Beach County, along with Miami-Dade and Broward, lead the state in GDP growth. With an increase of $59,622 in 2024, Palm Beach ranks third in Florida and 20th nationwide. Since the end of the COVID-19 pandemic, the county has gained more than $39 billion in new wealth and income, further strengthening its economic position. According to a study by SmartAsset, Palm Beach ranks third among Florida counties in GDP, only surpassed by Miami-Dade and Broward counties.
The influx of wealth and corporate presence has significantly bolstered related sectors, particularly luxury real estate and hospitality. The county’s expanding population of affluent residents — 59 billionaires and 71,000 millionaires — has driven demand for high-end homes, services, and amenities, reshaping the local real estate market.
The demand for luxury living has impacted the county’s condominium market, particularly among properties priced at $1 million and above. In August 2024, sales in this segment increased by 7% year-over-year, totaling 60 transactions, according to the MIAMI Association of Realtors.
“2024 has been an interesting year. With higher interest rates and economic challenges, we’ve faced considerable headwinds. However, 2023 was a very strong selling season, and we entered 2024 with a large backlog of sold homes,” said Mike Belmont, president of Minto Communities USA, to Invest:. “This year, buyers in that segment seemed more deliberate, likely influenced by the economy, the election, and resale markets in the regions they’re moving from.”
Despite higher interest rates and economic challenges, Palm Beach County’s real estate market remains resilient, the Palm Beach County real estate market continues to demonstrate long-term resilience and growth. Palm Beach County single-family home dollar volume increased 6.9% year-over-year in November 2024, reaching $905.7 million. Condo dollar volume for the same period totaled $294 million.
Regional real estate prices have also seen significant long-term appreciation. Condo prices have risen by 142.3% over the past decade, with the median increasing from $130,000 in August 2014 to $315,000 in August 2024. Single-family home prices have climbed 131.3%, from $267,000 to $617,500 during the same period.
Inventory levels remain a challenge as well, with total active listings at 13,215 in November 2024 — a 42% year-over-year increase, though still below the historical average. Single-family homes currently have 5.3 months of supply, slightly higher than 4.7 months two months ago. Condominium inventory reached 8.8 months in November, up from 7.1 months in August, reflecting more balanced conditions.
Home equity gains in the county continue to outperform national figures. A single-family home purchased in 3Q09 and sold in 3Q24 gained an average of $477,883 in equity, compared to the national average of $310,232. This strong appreciation contributes to the economic impact of real estate sales in the region. In November 2024 alone, the sale of 1,623 homes generated $175 million in local economic activity, with a total dollar volume for the month reaching $1.2 billion.
South Florida continues to demonstrate its strength in the national housing market. Miami-Fort Lauderdale-West Palm Beach was ranked as the No. 2 Top Housing Market in the U.S. for 2025 by Realtor.com, forecasting a 24% year-over-year increase in home sales and a 9% rise in median sales prices.
On the industrial front, the region continues to show strength due to its consistent rent growth and steady development activity. Over the past four years, direct rents have risen 54.8%, from $10.24 per square foot triple net in 3Q20 to $15.85 per square foot triple net in 3Q24, according to Colliers’ 3Q24 Industrial Market Report. However, rent hikes have begun to moderate with only a 4.1% increase since the start of 2024.
Construction activity has also eased compared to its recent peak. Last quarter, just over 862,000 square feet of industrial space were under construction, a notable drop from over 2.0 million square feet in late 2024. Despite this slowdown, deliveries have averaged 500,000 square feet per quarter in 2023 and 2024 year-to-date, with over 1.9 million square feet of new inventory added to the market so far this year.
The education sector is also benefiting from the county’s growing reputation as an innovation hub. Vanderbilt University announced plans to establish a graduate campus in Downtown West Palm Beach. Smallridge highlighted how the county’s collaborative approach between businesses, government, and education made it the ideal destination. The new campus is expected to support growing industries such as artificial intelligence and cybersecurity, further diversifying the county’s economy.
“Another prosperous sector for us is the life sciences and biotech industry, particularly in medical devices,” said Smallridge. She also highlighted the rapid expansion of aviation and aerospace industries, driven by an increase in private flights and growing demand for aircraft maintenance and repair services. “We have witnessed the remarkable growth of six industries overall, with financial services, life sciences, and manufacturing and logistics leading the way,” she added.
As 2025 approaches, Palm Beach is building on its momentum, driven by its growing financial sector, strong real estate market, and continued focus on innovation and education. With its appeal to businesses, talent and investors, the county is well-positioned to take the next steps in its evolution.
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