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Peter Thiel recently opened up on The Joe Rogan Experience about the challenges of moving businesses from places like Los Angeles to other popular relocation hubs such as Miami and Austin. While the pandemic made relocation more feasible for many, the situation seems to have shifted dramatically in just a few years.
During the early days of COVID-19, a wave of companies and individuals left high-tax, high-cost states like California and New York. Thiel was among them, purchasing a property in Miami in September 2020. “It’s probably up 100% since I bought it,” he shared. For Thiel, that investment worked out well, but he acknowledged that the environment for such moves has drastically changed since then.
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Rogan, who relocated to Austin in 2020, reflected on the challenges of uprooting his business. “It was very difficult for me and I had a bunch of people working for me that were willing to pack up and leave. You’re taking your whole business,” he said.
Thiel pointed out that moving is far harder and more expensive than during the pandemic. Real estate prices in popular destinations like Miami and Austin have soared, doubling since 2020. Mortgage rates have also spiked, going from around 3% to over 6.5%.
According to Thiel, the cost of purchasing a home has increased fourfold in recent years. This makes the decision much more difficult for companies considering moving because it involves paying more for office space and employee housing.
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Some industries are more flexible than others when it comes to relocating. Traditionally centered in New York, the finance industry has seen firms successfully move to Florida. He noted that private equity funds and banks can decentralize more easily and Miami’s rise as a financial hub during the pandemic is a testament to this shift.
