Despite pervasive fears of contraction in urban areas across the country, South Florida’s intensifying relevance—both nationally and globally—offers a reliable basis for optimism in the region’s real estate market and overall economy.

Since the tsunami of interest from individuals and businesses came crashing upon the shores of South Florida in the early months of the COVID-19 pandemic, the flood of intrigue and investment into the region has shown no sign of subsiding. Despite pervasive fears of contraction in urban areas across the country, South Florida’s intensifying relevance—both nationally and globally—offers a reliable basis for optimism in the region’s real estate market and overall economy.

In the last year alone, we have seen an abundance of evidence to justify this positive economic outlook for South Florida’s immediate and long-term future: the 2.5% unemployment rate for the Miami metropolitan area, as of October 2023, was well below the 3.6% national average; the stream of large financial institutions into the area continues to flow as evidenced most recently by French bank BNP Paribas (the European Union’s second largest bank) opening an office in the area.

Still, an often less considered factor for South Florida’s magnetism is the ever-expanding and palpable cultural significance that the region has established. Of course, the unique blend of vibrant Latin American influences, art deco architecture, and prime nightlife scene have all become synonymous with Miami; however, in recent years, the greater South Florida region has built a formidable reputation within previously untapped niches of the American zeitgeist. The Tri-County Region—consisting of Palm Beach County, Broward County and Miami-Dade County—command respect as a premier destination for real estate opportunities, technology, innovation, art, finance, fashion, entertainment, entrepreneurship, sports and culinary establishments that now include Michelin-starred restaurants.

The growing cultural relevancy in all of these areas bolsters South Florida’s growing economic power, overall quality of life and excitement. In America’s consumerist environment, cultural relevancy breeds interest, which naturally cultivates a positive speculative outlook, resulting in actual investment—both monetarily and in human capital. Perhaps the most notable example of this was in the world of sports with Inter Miami’s signing of Lionel Messi in July. Messi’s global recognition as arguably the greatest soccer (ahem … football) player of all time has made him one of the most culturally relevant individuals in the world. Within days of his signing, Inter Miami’s ticket prices soared on the secondary market to 16 times more than their original price, its pink jerseys flew off shelves in record volumes, and the team sold out all of its 2024 season tickets. Furthermore, consider the direct and indirect impact that “Messi Mania” has had and will continue to have on the local bars and restaurants, youth soccer programs and even the muralists commissioned to paint the soccer star’s image on the side buildings. Additionally, “Messi Mania” extends far beyond the sports realm and into the real estate world with his recent purchase of a nearly $11 million 10,500-square-foot waterfront mansion in Fort Lauderdale. According to local residential brokers, Messi’s purchase has put the area “on the map,” prompting others to follow and pushing up prices.

While “Messi Mania” is the hot ticket in South Florida sports at the moment, the recent success of South Florida teams in other leagues should not be discounted when considering the region’s growing relevance as a sports town. Last year, both the Miami Heat and Florida Panthers competed in the NBA finals and Stanley Cup finals, respectively. At the collegiate level, in the 2023 Division 1 Men’s Basketball Tournament, two South Florida college basketball teams earned their way into each of their program’s first ever Final Four appearance: Florida Atlantic University in Boca Raton and University of Miami in Coral Gables.

Ancillary to sports is the betting culture that surrounds it. Recently, legal sports betting commenced in the Sunshine State. With Hollywood Florida’s iconic Hard Rock Casino serving as a reminder of the South Florida population’s willingness to gamble, it will be interesting to see how the real estate market will be impacted by the new legislation.

Miami’s prestige among the art world has also continued to climb. Earlier this month, Art Basel Miami Beach concluded. In addition to attracting more revered artists and patrons from years past, the multiday extravaganza brought an estimated $500 million economic impact to the South Florida area and bolstered the local hotel, restaurant, marine and residential real estate industries. The byline of a Vanity Fair article profiling the impact of the event notes that the art fair “remains a signature event for its perpetually booming host city.”

Some well-known attendees of Art Basel Miami Beach 2023 have recently made South Florida home, such as Amazon founder Jeff Bezos, who announced his move to Miami in November. Bezos is not alone in making South Florida his primary residence. In 2022, Citadel founder Ken Griffin set the Miami residential sales record with his $109 million purchase of a home overlooking Biscayne Bay; he has also commenced work on the constructing of an approximately $1 billion mega-estate on Palm Beach. Other new residents of the South Florida area include the likes of Tom Brady, Jared and Ivanka Kushner, Carl Icahn, and Sylvester Stallone to name a few.

Traditional market-shaping indicators of a metro-area economy’s health remain strong for South Florida. The local, regional, and national press have covered much of those developments—Citadel’s building of its $1 billion headquarters in Brickell, Amazon’s Miami office expansion following Bezos’ move to the city, and the establishment of Formula 1’s Miami Circuit that reportedly boosts the local economy by nearly $350 million per event. All in all, Florida’s innovative and pro-business mindset, combined with the region of South Florida’s state-leading social, economic, and physical infrastructure, have supercharged both the quantity and sophistication of business conducted in South Florida within many different industries.

So, while it may appear fantastical to consider things like “Messi Mania,” an art fair and celebrity cachet when evaluating the economic drivers of a region, it would be unfair to not consider these factors into the equation. Despite the degree to which any individual may believe it exists in reality, there is a growing allure and unprecedented sensation of liveliness in South Florida that makes it culturally and economically significant. And much like how professionals in the financial markets must contemplate behavioral dynamics and human psychology in the buying and selling of securities, those predicting South Florida’s economic trajectory should weigh the excitement that has enveloped the Miami metropolitan area. When that excitement is considered, it’s clear why this is the “Magic City.”