Why Jeff Bezos Buys Miami Real Estate

Jeff Bezos has been on a Miami buying spree recently, purchasing several expensive properties throughout the metropolitan area. In May of this year, he relocated from Seattle to the Magic City, following his parents back to the Sunshine State with several lavish properties.

Overall, Jeff Bezos has purchased over $237 million of property in the area, including three gorgeous homes on the super-exclusive island of Indian Creek. The area has become known as “Billionaire Bunker” due to the many celebs and high-status individuals who have splashed out for stunning views of the Atlantic Ocean and quick access to downtown.

So why do Jeff Bezos and so many others prefer the glamor of Miami over other coastal cities? It’s for many of the same reasons that famous fashion and luxury automobile brands are joining the gold rush. Today, we’ll explore why Miami has become such a trendy spot for the rich and famous to enjoy a tropical wonderland.

Miami’s economic strength simply cannot be understated. The Miami-Dade metropolitan region has one of the strongest economies in Florida and the United States overall, which can be easily seen through the incredible metrics pouring out of the city.

The Bureau of Labor Statistics notes that in June 2024, Miami had an unemployment rate of 2.5%, which is significantly lower than the US average of 4.3%. Miami-Dade as a whole has an unemployment rate of just 2.7%, demonstrating that almost the entire population held at least one job. 

Even more shocking, South Florida has a gross domestic product (GDP) of $344 billion. If it were its own country, this region would have the 39th-largest economy in the world, putting it above the entire country of New Zealand. 

Florida as a whole has an incredibly powerful economy that easily outstrips growth in the rest of the country. In January 2024, Governor Ron DeSantis announced that Florida’s GDP grew by 21.9% between 2019 and 2024, which is almost double the national GDP growth of 11.1%. And, amongst all Florida metropolitan areas, Miami is number one for GDP growth.

It goes without saying that in a strong economy, there’s more demand for high-value homes: people can afford to splurge on this essential expense. As more individuals and companies find value in Miami, it continues to drive more investment.

Miami has long been known as a great vacation destination, which draws in massive investments from major brands across the world. In general, the more high-profile investments that pour into an area, the more willing others are to join in, something called industry clusters. In Miami’s case, its strong tourism industry has created a strong real estate market, which in turn attracts more investors who want to reap the benefits of these profits. 

Major companies have followed the money, such as Tom Brady’s TEB Management, which is just a mile away from his home in Indian Creek. A number of big companies also have property here, including Amazon, Microsoft, Burger King, Citigroup, Chewy, and American Airlines. A powerful job market made up of big businesses draws in those who want to work with the best brands, especially because their wages are higher than one would find at smaller companies. 

This drive for business pushes up market prices and drives competition for ultra-luxury real estate, attracting those who may want their own share of paradise.

For example, with the Dolce and Gabbana building in Miami, the city has won over yet another internationally renowned company seeking to capitalize on the city’s powerful economy. Dolce and Gabbana joins other big-name brands that are creating their own condominiums, which include Aston Martin, Bentley, Porsche, and several hospitality brands like Mandarin Oriental and Viceroy.

Another reason that so many are flocking to Miami despite the concerns of climate change is that this beautiful, hip city is doing as much as possible to reduce danger.

Jeff Bezos himself has been sounding the alarms about climate change for several years now, acknowledging that it poses a severe risk to people everywhere; in 2020, he invested $10 billion to help find new solutions to climate change. This ethos is reflected in the activities taking place on Indian Creek, where upgrades to the roads, drainage system, and storm structures are taking place. One key part of the island’s strategy to reduce risk is to use basalt to build a brand-new sea wall; this type of rock is impervious to saltwater erosion, unlike common sea wall materials like concrete. 

The work on Indian Creek reflects the greater ethos of Miami, which has been working hard on its Climate Action strategy. This plan includes retrofitting older buildings to be more storm-resistant, installing solar panels, building more public transit to reduce single-occupancy transportation, and increasing the tree canopy to provide passive cooling of structures. Its 1-year update, released in early 2023, demonstrates very promising results, including installing solar panels on one library that generated enough electricity to power 190 residential buildings.

Investors and businessmen like Jeff Bezos are keenly aware of the dangers posed on coastal areas like Miami; their purchases consider both short-term and long-term gains. Bezos’ multiple purchases in the area demonstrate trust in the local government to adequately face the challenges brought by climate change, which should be a relief to others who are also interested in purchasing Miami real estate.

In real estate, looking at how high-powered investors choose to spend their money can help others recognize the promise held in certain cities. Thanks to its supercharged economy, strong industry clusters, and uniquely passionate approach to climate change mitigation, Miami remains a top contender for one of the strongest economies in America. Whether purchasing a luxurious condominium like the Dolce and Gabbana units or simply buying into a REIT, those passionate about real estate can find so much to love about this city.