A proposed California wealth tax is prompting a significant migration of billionaires to Florida, according to Florida real estate managers and city officials. The initiative, put forward by the Service Employees International Union–United Healthcare Workers West, would impose a one-time 5% tax on the net worth of California residents with assets exceeding $1 billion. Although the proposal has not yet qualified for the November 2026 ballot, its mere consideration is already influencing high-net-worth individuals to relocate [1].
Brett Harris of Bespoke Real Estate in Miami reported to the Los Angeles Times that he currently has three contracts north of $600 million, indicating a surge in major real estate purchases by California billionaires in Florida [1]. Chase Berger, a lawyer specializing in real estate transactions, noted a marked increase in 'stealth ownership' deals, stating, 'I used to do a handful of these a year... now it’s dozens.' Berger described the situation as a 'residency war with California that they’re fighting' [1].
Florida developers and landowners are preparing cities beyond Miami and Palm Beach for incoming residents, with coastal areas seeing particularly high demand. Palm Beach County Commissioner Maria Sachs commented, 'Florida is the new California,' likening the current influx to California's boom in the 1950s and 1960s [1].
California Governor Gavin Newsom has publicly opposed the wealth tax, calling it 'really damaging to the state' and expressing confidence that it will be defeated due to overwhelming opposition. The Service Employees International Union–United Healthcare Workers West has until June to gather enough signatures to qualify the measure for the November ballot, at which point voters would decide its fate [1].
CONCLUSION
The proposed California wealth tax is already driving billionaires to relocate to Florida, resulting in a surge in high-value real estate transactions and increased demand for coastal properties. Despite not yet qualifying for the ballot, the initiative is having a high market impact, with California officials expressing strong opposition and confidence in its defeat. The ongoing uncertainty is likely to continue influencing migration and real estate trends until the measure's fate is decided.