According to federal data, Florida saw twice as many new business openings in the state compared to New York last year. During COVID, Florida’s number of newly opened businesses surged due to the lack of prolonged lockdowns in the state, which spurred a lot of New York and California residents to flee to the Sunshine State to pursue new business ventures.
The Numbers
Last year, Florida residents filed 632,105 new business applications, which according to the data was a 27% increase from the year before. More than a third of these business applications were submitted in the economic heart of the state, which is composed of the 3 large counties of South Florida, including; Miami-Dade County, Broward County, and Palm Beach County.
- Miami-Dade County: 135,710 new business openings (26.7% increase)
- Broward County: 84,045 new business openings (20.0% increase)
- Palm Beach County: 51,211 new business openings (23.9% increase)
However, New York also saw an increase in business openings from the 2020 year with 309,170 but that is nothing compared to Florida’s staggering pace. Brooklyn saw the highest increase in the state with 53,588 new businesses which is good for an 18.1% increase.
Why such a large increase?
Likely the biggest factor contributing to the increase in new businesses in not just Florida, but other states across the sunbelt, has been the COVID-19 pandemic. Residents from states with large metropolitan cities like New York, California, and Illinois are moving down south as remote work is becoming more common, making it easier to relocate and lower cost of living and much lower taxes also gives them a good nudge. Florida has seen a 211,000 resident increase from July 2020 to July 2021 according to the latest census numbers. This was only second to Texas in terms of growth during that span, which in part resulted in booming economic growth. States like California, Illinois, and New York registered among the largest population losses in the country in that span.
Wrap Up
It’s no secret a lot of New Yorkers spend a lot of time down in Florida because of the nice weather among other reasons. But it seems as though the pandemic has pushed a lot of residents to make that move permanent. If you ever are thinking about opening up a new business in another state, it could be a good idea to talk to a trusted financial advisor to get all the information you need.