Move over San Fran; there’s a new sheriff in tech-town. Miami continues to jostle for position as the next and best tech hub in the US. No longer just a place for retirees to enjoy the tropical weather, Miami is attracting the top tech talent and offering a work-life balance unparalleled to other emerging markets. 

Sure, the weather is excellent. With an average of 248 days of sun per year and an average yearly temperature in the late 70s to early 80s (Fahrenheit), the Miami climate is attractive to young professionals eager to make the most of life. But the weather isn’t the only attractive feature. Florida lacks a state income tax, boasts a diverse population, and is set up for a young, vibrant demographic. We should have listened to Will Smith in 1997 – “Yo, ain’t no city in the world like this.”

While Miami is still on the up and up compared to the well-established San Francisco and Silicon Valley market, the snowball continues to roll uphill. Mayor Francis Suarez has been air blasting the city’s desire for a new tech title since early 2020, and big moves are being made to make it a reality. According to CrunchBase, 1 billion in venture capital funding was raised in 2020, with no signs of it letting off. With the COVID pandemic forcing a re-evaluation of work-life balance, Miami is a no-brainer for anyone interested in the pursuit. 

The Proof Lies in The Pioneers

There has been no shortage of proof for Miami slowly climbing to the top of its tech pedestal. High-profile investors and company heads have been silently creeping away from New York and Los Angeles for years, seeking new stomping grounds with better lifestyles. Keith Rabois, a general partner of Founders fund, moved to Miami in 2020 and told Fortune Magazine that “Miami is an incredibly beautiful city, cosmopolitan, and has an interesting mix of New Yorkers, Latin Americans, and Europeans,” recognizing the diversity of the ecosystem. “It feels like I’m on vacation.”, he says. In a different interview, he goes on to tell Sway’s Kara Swisher, “The mayor of Miami, the governor of Florida treat citizens like customers. ‘What can we offer you? How can we help?’ That’s their goal, and that’s how they frame everything.” 

Silicon Valley has become a playground for venture capitalists to invest, sit back, and reap the rewards. Miami offers something more involved- a chance to build a new tech world where youthful energy can play a more integral role in the foundations. 

The 2020 Wave

Miami was already establishing itself as a potential candidate for an upcoming tech scene prior to 2020. Still, the city got a massive push after COVID started taking its toll on US business. Miami’s restrictions were more lax, initially drawing the work-from-homers in to maintain important aspects of their work-life balance. And it did such a good job, many of these migrants don’t want to go back. Combining this with more favorable state tax laws for entrepreneurs and a cheaper employment and real estate market than cities like New York and San Francisco, many entrepreneurs figured why not bring their business with them. 

From April 2020 to April 2021, 900 people a day moved to Miami, according to Florida’s Office of Economic and Demographic Research. This resulted in an influx of 330,000 people, prompting the website move.org to name Florida the number one destination for relocating Americans in 2020. Housing is more affordable, property tax is less than 1%, and Florida’s state projections show that the momentum is not slowing. The predictions are that Florida will continue to grow by 845 new residents per day until 2025. 

Miami’s Potential for Growth 

The city also offers enormous potential expansion compared to other coastal towns of its size and easier access to the European and Latin American markets. Politically, Florida is less entrenched in a one-sided history. As a notable swing state, Florida carries less political tension and stereotypes than California. 

Miami also has the advantage of following in other cities’ footsteps, avoiding the ankle turns and the potholes along the way. It’s also small, with a population of fewer than 500,000 people- half that of San Francisco and 25% of the people of Manhattan. Networking is faster and more intimate, and mentorship comes easily. 

While Miami may not be able to catch up to the market value of Silicon Valley, it could undoubtedly attain prominence against other sub-tier tech hubs like Nashville and Austin. And it seems to be doing just that. With big wig financial entities like Blackrock and Citadel opening Miami-based offices, and Elon Musk proposing a $200 million project to build a 6.2-mile tunnel to ferry Teslas underneath the traffic, there is certainly more than a whisper on the wind of Miami’s potential stake. 

References:

Swisher, Kara. Is Tech’s Love Affair With Miami About Taxes Or Something Else.” 22 Feb 2022. Sway Transcript. Web Accessed. 2 March 2022. <https://www.nytimes.com/2022/02/17/opinion/sway-kara-swisher-keith-rabois.html>

Langer, Marie-Astrid. “Miami’s Dream of a New Tech Hub.” 26 July 2021. NZZ Web. Accessed 02 March 2022. <https://www.nzz.ch/english/miami-seeks-to-join-silicon-valley-as-tech-hub-ld.1637120>

Mcnulty, Matt. “ Musk pushes to build 6.2-mile underground tunnel for Tesla vehicles to ferry passengers under traffic-clogged North Miami Beach.” 28 Feb 2022. The Daily Mail. Web. Accessed 02 March 2022. <https://www.dailymail.co.uk/news/article-10558283/Elon-Musk-pushes-build-underground-tunnel-Tesla-vehicles-North-Miami-Beach.html>
“Almost 330,000 people have moved to Florida during the past year; migration is expected to continue through 2025.” 21 May 2021. Islander Media Group Inc. Web. Accessed 02 March, 2022. <https://www.islandernews.com/lifestyle/homes/almost-330-000-people-have-moved-to-florida-during-the-past-year-migration-is-expected/article_78860b40-aa7d-11eb-957d-1f0232e9d6d0.html>