How Tax Migration, Luxury Growth, and Down Payment Assistance Are Reshaping the Future of Homeownership in Delray Beach & Palm Beach County

Florida is in the middle of a housing shift unlike anything we’ve seen in decades.

This week, I attended two events that revealed the full picture:

1. Florida Housing Finance Corporation’s training (with over $15 million in down payment assistance still available), and
2. The Delray Beach Chamber of Commerce meeting, where Charles D. Esposito, Managing Partner at Katz Barron, delivered a powerful talk titled “From Tax Policy to Political Pressure.”

Together, these conversations paint a clear story about why affordability is tightening, why prices remain high, and how Palm Beach County is being reshaped from the inside out.

Let’s break it all down.

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What’s Driving Housing Demand in Palm Beach County in 2025?

The South Florida real estate market continues to attract new residents at record levels — and much of it is driven by tax migration from high-tax states.

The 2017 SALT Cap Changed Everything

Esposito explained how the Tax Cuts and Jobs Act (TCJA) capped state and local tax deductions (SALT) at $10,000, a seismic shift for:

• New York
• Connecticut
• New Jersey
• California
• Illinois

In some areas, residents were previously deducting far more. Losing that benefit effectively increased tax burdens by 30–40%, pushing many toward tax-friendly states like Florida.

Why High-Earning Households Are Fleeing North

This is part of the larger Zohran Effect — a trend where high-net-worth individuals leave New York City to escape heavy taxation and rising regulation.

Florida delivers everything they want:

• No state income tax
• Business-friendly policies
• Remote-work lifestyle
• Warmer weather & better quality of life
• Lower commercial taxes (The 2% commercial lease tax was eliminated)
• Much cheaper office space (Boca averages 48% less than NYC)

It’s no surprise that 120+ major investment firms have moved into Palm Beach County in recent years. This “Wall Street South” transformation continues to drive both commercial and residential demand.

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Delray Beach: Growth, Opportunities, and Growing Pains

Delray Beach remains one of the most desirable walkable downtown communities in South Florida. But rapid growth has created pressure points.

New Restaurants & Development Updates

Delray is attracting major names:

• Geronimo (from New York) — opening soon
• Barcelona — a new addition to Delray’s evolving culinary scene
• Atlantic Crossing — townhomes completed and fully rented; more phases underway

This aligns with the trend Esposito described as “Main Street South” — the migration of New York–style dining and lifestyle brands into Delray’s walkable corridor.

Permit Delays Slowing Down Construction

Delray Beach is experiencing significant delays in issuing building permits. Developers, contractors, and business owners are feeling the bottleneck, which:

• Slows new housing inventory
• Increases construction costs
• Pushes prices even higher

Luxury Expansion Continues

Neighborhoods like Tropic Isle are seeing tear-downs replaced by new construction averaging $6M–$7.5M+.

Meanwhile, East Delray’s median home price has reached $1,000,095, according to recent buyer/seller profiles.

This contributes to what many now call…

⚖️ 

“A Tale of Two Markets” in Palm Beach County

According to Esposito and NAR data:

• Cash purchases are at the highest levels ever recorded
• Wealth migration from states like NY, CA, CT continues
• Luxury real estate is booming
• But 50% of Florida residents and natives say they are considering leaving due to the affordability squeeze (the “Sunshine Squeeze”)

Florida is simultaneously a top tax haven AND a cost-burdened state — creating a sharp divide between:

1. High-income relocators

who buy quickly, often in cash,

vs.

2. Local working families

who struggle with rising rents, insurance, and limited inventory.

This is the heart of Florida’s affordability crisis.

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The “Silver Tsunami” Will Increase Demand Even More

Every day, 11,000+ Americans turn 65.

Esposito called this demographic shift:

• The Silver Tsunami and
• The Peak 65 Zone

Boomers hold tremendous wealth and influence — and many are choosing Florida for retirement. Their demand further tightens housing availability in Palm Beach County.

This adds pressure on:

• First-time homebuyers
• Young families
• Essential workers
• Middle-income households

But here’s the part most people don’t know…

💰 

Florida Still Has Over $15M in Down Payment Assistance for 2025

During Florida Housing’s training with Mark Pease, we reviewed major program updates, including:

✔ 

Loans up to $800,000 qualify

✔ 

Household incomes up to $175,000 qualify

✔ This is NOT a “low-income” or “bad credit” program

✔ Zero-interest and deferred options available

✔ Funding reservations happen instantly — no waiting lists

✔ Tens of millions still unclaimed statewide

Many middle-income families in Palm Beach County qualify without realizing it.

Programs like:

• Florida Assist
• Florida PLUS (forgivable)
• Hometown Heroes
• Local workforce housing initiatives

can significantly reduce upfront costs.

These programs directly counter affordability flight — allowing families to stay close to work, schools, and community roots.

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Where Affordability Is Shifting in Palm Beach County (2025)

Highest Price Pressure

• Delray Beach
• Boca Raton
• Highland Beach
• Palm Beach Gardens
• Wellington

Moderate to More Attainable Options

• Lake Worth Beach
• Greenacres
• Riviera Beach
• West Boynton
• Royal Palm Beach
• Loxahatchee

Notable Workforce Housing:

Newer apartment communities along Congress Avenue include WFH (Workforce Housing) units that offer relief to essential workers.

✈️ 

When Staying Isn’t Sustainable… Atlanta Becomes a Smart Relocation Option

Because I work in both Florida and Atlanta, I see buyers comparing markets every day.

Atlanta offers:

• More affordable housing
• Strong employment
• Urban + suburban lifestyle choices
• Lower cost of living
• A similar cultural feel for Floridians

For some Palm Beach County families, Atlanta becomes a realistic alternative to preserve lifestyle and financial stability.

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What This Means for Buyers & Families in 2025

Florida real estate isn’t slowing down.

Tax migration isn’t slowing down.

Boomer demand isn’t slowing down.

Luxury development isn’t slowing down.

But Florida does have tools to help families stay rooted — including significant down payment assistance that is still available today.

The key is simple:

Know your options early.

Understand your buying power.

Explore all markets that align with your lifestyle and budget.

Whether that means staying in Palm Beach County, leveraging Florida Housing programs, tapping into workforce housing, or exploring more affordable alternatives like Atlanta… information is your greatest advantage.