Is Miami the Venice of the 21st Century?

Miami, known for its white sandy beaches and spring break celebrations, is increasingly becoming a “magnet” for global wealth and business.

Real estate information company Zillow’s latest data shows that “Gables Estates” in Coral Gables near Miami is currently the most expensive community in the United States, with the typical home value around $19.6 million, highlighting the rise of the South Florida metropolitan area.

As of April this year, Coral Gables’ Old Cutler Bay and two communities in Miami Beach, San Marino Island and Rivo Alto Island, have also made it to the list of the top 10 most expensive communities in the U.S.

Another community in the Miami area, the Bears Club in Jupiter, along with a community in Naples along the Gulf of Mexico in Florida, have secured positions in the top 10 rankings, with Miami dominating 7 of the top spots.

The booming real estate market over the past four years has propelled multiple communities in South Florida to be among the most expensive in the U.S., driving up property prices in Miami. Data from online brokerage firm Redfin shows that the median home price in Miami has nearly doubled from $335,000 in March 2020 to $600,000 in March 2024.

Miami’s abundant sunshine and laid-back lifestyle have always attracted people, but in recent years, the city has benefited from a thriving economy. Miami-Dade County’s labor market is very tight, with high entrepreneurship rates, making it one of the most dynamic economic entities in the U.S.

During the COVID-19 pandemic, a large number of startup founders, venture capitalists, and private equity tycoons have flocked to the business atmosphere-rich Miami from traditional tech and financial centers like Silicon Valley, New York, and Chicago. Mayor Francis Suarez has welcomed tech professionals with the slogan “How can I help?”.

Apart from emerging as an economic hub, Miami has also become a global art hub, on par with cities like New York and Los Angeles, establishing itself as one of the most important art cities in the U.S. Every December, numerous artists, traders, collectors, and art enthusiasts pour into Miami during “Art Week”, which includes over twenty international art fairs, with the most famous being Art Basel Miami Beach, along with a series of art-related parties, pop-up exhibitions, and events.

Miami’s rise as an economic and creative center has led some to optimistically claim that this sunny, beachy, and fashionable city has the potential to become the “Venice of the 21st Century” – a global trade center and leader in the art field. Although this land filled with Instagrammers and Lamborghini renters may not have much in common with the affluent Italian city-state from over five hundred years ago, a closer look reveals the enchanting similarities between Miami and the Venetian Republic.

The Venetian Republic was a powerhouse during the Middle Ages and the Renaissance, a sovereign state and maritime republic in northeastern Italy with a powerful navy and a prosperous economy supported by global trade routes. Similar to Venice, Miami serves as a gateway between various regions, especially North America and Latin America, with deep cultural and economic connections to these areas. Miami is a logistics and transportation hub in the Western Hemisphere, with nearly half of all flights between the U.S. and South America passing through here, making it a convenient meeting place for businesspeople from Latin American countries. A report by market research firm WorldCity in 2016 found that 1,439 multinational companies from 55 countries have offices in South Florida, with about three-quarters of them including Latin America in their investment portfolio.

While Miami has traditionally been focused on tourism and real estate, the city has also evolved into an international financial center, akin to the defunct Venetian Republic. Miami is not only the second-largest global banking hub in the U.S., but it has also attracted domestic financial firms, most notably the giant hedge fund Citadel, which announced its move from Chicago to Miami’s Brickell area in 2022. Miami’s increasingly prominent position in the art world mirrors that of Venice. While Miami may not boast a navy like Venice, it is worth noting that Miami port is the busiest cruise hub in the world.

Lastly, like Venice, Miami is also built on marshland. Despite the susceptibility to floods and storms due to its geographical features, the real estate market doesn’t seem concerned, with waterfront luxury home transactions continuously hitting new highs. The Venetian Republic was known as La Serenissima – “The Most Serene”, and as Miami rises on the world stage, this title is equally fitting for the sun-drenched city of Miami.