Leaving Los Angeles for Miami | Comparing Luxury Markets, Lifestyles and Neighborhoods

In this episode of the Better Decisions podcast, I speak with Maya Vander. Maya is a Miami real estate agent, who starred in the Netflix show Selling Sunset. We discuss the differences between being in a reality show and the day-to-day life of a real estate agent. In addition, we discuss other topics such as the Miami luxury real estate market, the difference in lifestyles and neighborhoods, Measure ULA, and why some of Maya’s clients are leaving Los Angeles for Miami.

 

 

Being a Realtor® is nothing like the life they show you on TV. Of course, there are some similar aspects, but deals are not always easy, and a lot of work happens behind the scenes. They often make the industry look too easy. They do not show the efforts spent in creative marketing, market comparisons, contract negotiations, showings that do not lead to deals, and farming.

For Maya, it became impossible to be a bi-coastal expert, traveling between Los Angeles and Miami, therefore she left the show after five seasons. Additional challenges are that not all clients want their homes or identities revealed on national TV.

 

It is hard to combine filming, and being a full-time realtor. Real estate is a full-time job and requires around-the-clock attention, at least when you want to be at the top of your game. Many scenes were filmed after the closing because a deal can take months.

 

Maya is now a full-time Miami real estate agent, who has started her own team and is excellent to shed light on the differences between Los Angeles and Miami.

 

Los Angeles used to be much more expensive than Miami, but Miami prices have caught up and are now similar to those in Los Angeles. Our luxury and ultra-luxury real estate used to sit on the market for months, even years, and is now selling in weeks or days. As Maya states in the podcast, Miami used to be underrated. It is now finally at the level it deserves and gets the recognition it earns.

 

There are still buyers out there that think Miami is on sale. Miami is not on sale, and so-called good deals are not so common anymore. If you are looking for a bargain, this is not the place.

 

Although Maya and myself are bullish on the market, it is not all rainbows and unicorns. I have always studied the market in-depth, and my best advice is to stay away from a generic product that can be easily replicated. We have learned from the previous cycle that the bearish condo market was partly caused by too much of the same product entering the market. Buyers have to be careful with the mid-range product. Even though Miami is doing well, the mid-range product is an investor-driven market where many units end up for rent. When the market shows signs of a recession, or people need liquidity, these units will be listed en masse.

 

Much of the new Miami condos are larger, luxury residences that can function as primary residences. These condos are unique and harder to replicate. They all start selling for around $2,000 per SF or $3,000 per SF on the Beach. We do not foresee that market going down.

 

Regarding ultra-luxury real estate, Miami has also reached new levels. We used to sell 20 homes in the $10M+ range, and last year we recorded 90 transactions in the $10M+ range in January alone. $10M+ Transactions are now common, and we will see more of this with the ongoing wealth migration.  

 

Knight Frank recently ranked Miami as the second-best market for top luxury, or prime, real estate markets in 2023. As mentioned, more wealth keeps coming in. Just recently, Chicago-based Citadel announced it is moving its global headquarters to Miami. This move will bring 350 new families into Miami.

 

 

 

As a former Angeleno and current Miami resident, Maya Vander can compare the lifestyles. First, the traffic in Miami is light, much lighter than in LA anyway, making our jobs and lives much easier and less stressful.

 

Additionally, Miami offers a lot of great energy and is very pretty and clean. Los Angeles is great and offers some superb pockets, but LA is not as aesthetically pleasing as Miami. Many areas are dry, industrial, and not always that nice to drive through. Miami is a clean city with lots of waterfront and gated communities. It is not just a nice little neighborhood here and there, it is continuously beautiful when driving North to South. It also offers an amazing lifestyle with world-class restaurants, shops, beaches, and fantastic views.

 

Finally, Miami is a very safe city. People used to think of Miami as South Beach, but are now getting to know the real Miami. This city has a real community, and the lifestyle is unparalleled.

 

Miami has hurricane and flood insurance, and Los Angeles has fire insurance. Both cities are dealing with environmental threats. In Los Angeles, some homes are hard or impossible to insure. In these cases, the houses cannot be financed, since they will not appraise. The fire insurance might go up to $60,000/$70,000 per year, and insurance premiums will not go down since more and more fires are happening.

 

In Miami, there are areas at risk for flooding and hurricanes. Insurance premiums are also going up, but some properties are more at risk than others. For instance, if you own an older home on the water, your insurance premium increase. Likewise, Brickell and Miami Beach are more prone to flooding than areas such as Pinecrest, Coral Gables, and Ponce Davis. In addition, the newer homes are not so much a risk and will also have lower insurance premiums as they are built according to the latest code. For more information on South Florida home insurance, please check my podcast with insurance attorney Hugo Sanchez.

 

 

 

Maya and I have dealt with many relocating families that moved from LA to Miami. The inevitable question is why Angelenos would move to Miami. According to Maya, most of her clients are moving to Miami cause of taxes, the business climate, and safety. Her relocation buyers mentioned that Los Angeles is just not friendly for businesses. With the combined taxes easily reaching 55%, many business owners or wealthy families no longer find LA an attractive place to live and work.

 

Social issues and safety have also increasingly become an issue and are driving LA residents out of California and into other states. Our clients feel they pay top dollar for real estate and receive hefty tax bills, but do not necessarily see much in return. There are social issues, and they might get robbed when they enter the wrong street. Some pockets in town feel unsafe or have experienced robberies in broad daylight. Miami, on the other hand, has a tougher approach to crime.

 

Maya and I, we can both include we feel 100% safe in Miami and think it is an excellent place to raise our children. Miami is very safe, has fewer social issues, and is an overall cleaner and greener city.

 

In addition, the city of Los Angeles is now dealing with measure ULA, also known as the LA mansion tax. This mansion tax imposes an additional transfer tax (4% to 5.5%) on the sale of a home worth $5M or more. LA-based broker Jason Oppenheimer (Maya’s former broker) called this a death blow for LA developers. The large developers and investors are no longer interested in developing projects in LA, as their profit margins are significantly reduced. As many of these developers work with funds that invest hundreds of millions of dollars, the cost of this new law is enormous.

 

Will this create another big wave of investors in Miami? Potentially yes, because you pay this mansion tax regardless, even when you sell at a loss. This cuts the profit for sellers or makes them sell at a loss. We all agree that Los Angeles has a problem with homelessness, and finding a solution is important. The question always remains whether the money is going where it is supposed to go.

 

I asked Maya to compare LA neighborhoods to Miami neighborhoods. So if you would live in Beverly Hills, what Miami neighborhood would match that lifestyle.

 

Marina del Rey in Los Angeles – Best compared to Sunset Harbour in Miami Beach, an isolated little pocket in a residential area with small shops and nice restaurants.

 

Coconut Grove in Miami: The Grove is hard to compare to anything in Los Angeles. Coconut Grove is green, organic, and very unique. It is a very lush and tropical setting and different from anything in Los Angeles.

 

Coral Gables in Miami – Best compared with Brentwood, because of the many wealthy families and A-rated schools. Both are large neighborhoods yet close to all the other important parts of town. Coral Gables is, to some extent, interchangeable with areas like Pinecrest or Ponce Davis. Most people looking in Coral Gables might also look for properties in Ponce Davis or Pinecrest.

 

Ponce Davis in Miami- Ponce Davis is best to be compared to Beverly Hills, Santa Monica, and some parts of Brentwood. They have in common that they offer large mansions on large lots, and are desired by families. When referring to Santa Monica, it will be most comparable to Georgina street and the streets closer to the ocean, although Ponce Davis is not near the water.

 

Pinecrest in Miami- Best compared to Calabasas and Hidden Hills, because of the large homes on large lots. The Valley might also be a good comparison as it is greener than other parts of Los Angeles.

 

Gables Estates is Miami’s top community offering a beautiful waterfront setting. Here you can find some of Miami’s most expensive real estate with high entry-level prices ($20M+). The best Los Angeles equivalent is Beverly Park, a high-end gated community where some big names bought real estate. The difference is that Beverly Park looks over the canyons and Gables Estates looks over the water. Gated communities are overall harder to find in Los Angeles compared to Miami.

 

North Bay Rd in Miami Beach – A very hyper-focused area that is best compared to some streets in Brentwood or Bel Air. Both have several very nice pockets with super-desired streets. Other streets comparable to Arvida Parkway or Indian Creek Island in Miami would be Beverly Park Terrace or Beverly Park Cir.

 

For more LA vs Miami neighborhood comparisons, go to my interview with Los Angeles Top Broker Juliette Hohnen.