Two cities that were pandemic darlings have lost their shine

Aug 12, 2026 05:52 PM - 1 hour ago 1

Aerial view of Miami Beach skyline betwixt water and intracoastal waterway banal photo

Here's a condemnation you'd person a difficult clip believing successful 2020: Miami's costs of surviving has surpassed New York City's.

That's according to information from the Bureau of Economic Analysis. In 2024, the Magic City became much costly to unrecorded successful than the Big Apple. (I recognize we're successful 2026, but that's the astir caller information available. Deal pinch it.)

It's not the type of triumph Miamians are celebrating. Rising costs person slowed the Miami migration, posing a situation for the city's maturation prospects, writes BI's Alcynna Lloyd, Jordan Pandy, and Madison Hoff.

The metropolis is drafting 1 type of resident, but they're a batch little worried astir affordability. Billionaires, peculiarly Californians trying to debar the proposed California wealthiness tax, person flocked to the city.

Some group aren't excessively upset. If you ain spot successful the area, you've apt done alright. Ana Bozovic, the laminitis of a section real-estate investigation firm, told BI that homes priced nether $500,000 person fundamentally evaporated.

But who's astir to bargain those houses could beryllium the issue.

More group moved retired of the Miami metro area than moved successful betwixt July 1, 2024, and June 30, 2025. And the occupation marketplace has stagnated contempt pledges from companies, especially those connected Wall Street, to build retired their beingness successful the area.

Miami's arguably still doing amended than different post-pandemic darling.

Austin's real-estate marketplace has cratered complete the past fewer years, BI's James Rodriguez precocious reported. Asking prices person plummeted, and astir group who bought successful astatine the apical are getting crushed. A whopping 79% of Austin-area homes sold successful 2022 are now worthy little than their waste price, according to Realtor.com.

The city's awesome rumor was builders getting up of themselves. In the unreserved to meet demand, they flooded the marketplace pinch houses, tanking prices. However, a competitive occupation market and a young organization mean it's difficult to count Austin retired successful the agelong run.

Miami, meanwhile, is simply a much analyzable story. The metropolis has a history of reimagining itself each fewer years. But from its tally arsenic Wall Street South to its crypto era, Miami can't look to switch the cities it keeps comparing itself to.

That doesn't mean it's doomed to fail. Miami's sewage 2 benefits that'll ne'er spell retired of style: lukewarm upwind and debased taxes. So don't expect the rebrands to stop.

They're conscionable getting much expensive.

Dan is the lead writer for BI Today, Business Insider's flagship regular newsletter. Dan often interviews executives astir everything from AI's effect connected capitalism to robotics to the potential SaaSpocalypse arsenic portion of his activity connected the newsletter.Dan was an editor and newsman astatine BI, covering financial exertion and marketplace structure.His erstwhile activity includes everything from inside Robinhood's grounded "Checking and Savings" product that yet led to Congress getting progressive to the soul arguments complete JPMorgan's grounded attempt to motorboat a finance app for millennials.Before joining Business Insider, Dan wrote astir consequence guidance successful derivatives markets for Risk.net and fintech for WatersTechnology. He initially covered section sports for The Journal News, a regular newspaper serving the little Hudson Valley. Got a tip? Contact this editor via email astatine [email protected].