401(k)s, IRAs, and taxable accounts have a habit of piling up over the years. People change jobs. They dabble in new investments. They try out different advisors.
So every now and then, it’s good practice to weigh the pros and cons of consolidation, including access to tax-smart tools, low fees, and automated investing. We break down a few considerations below to help guide your thinking, compare options, and make the right call for your specific situation.
Three considerations for making a move
1. Performance
It all comes down to this, doesn’t it? Will Advisor B outperform Advisor A? Will they help my investing generate more gains?
We couldn’t agree more, albeit with a big clarification: Returns are a major part of performance, but they’re only one piece of the pie. Taxes and fees can take a bigger bite out of your investments than you may realize. So before we help you compare returns, let’s first look at these two other pieces.
Taxes
To maximize your returns, minimize your taxes. And tax-savvy advisors like us take advantage of three strategies to do just that. If your old investments can’t access these benefits, it may be time for a change of address.
The first strategy is called asset location, or slotting investments into different account types depending on those accounts’ tax treatments. It’s specific to retirement accounts, and it becomes much easier to do (and do well) when those accounts are consolidated with one provider. Our Tax Coordination feature takes asset location to the next level.
The second strategy is specific to taxable accounts: tax loss harvesting. Tax loss harvesting can take a portion of your taxable investing and turn it into tax-advantaged investing. It’s become a tax strategy for the masses thanks to technology like ours and the low-cost trading of exchange-traded funds (ETFs).
Speaking of ETFs, they’re considerably more tax-efficient than most mutual funds. All of our stock and bond portfolios are built with ETFs, whereas some legacy 401(k) providers’ technology can’t even support them. If you find yourself with old investments in the form of mutual funds, consider taking a hard look at their potential tax drags and, just as importantly, their costs.
Fees
Investing fees fall into two main buckets. There’s the advisor fee, which goes to whoever manages your investments on your behalf (like us!). Then there are fund fees, also known as “expense ratios” or “fund operating expenses.” These are charged by the investment funds themselves that make up your portfolio.
So what’s a reasonable amount to pay for each? The average advisor charges roughly 1% of the assets they manage for you. Our annual fee for investing comes in well below that average.
A 401(k) with even a modest fee may cost you tens of thousands of dollars over time. The savings from rolling into a Betterment IRA of low-cost ETFs, meanwhile, can add up to a more comfortable retirement.
On the fund front, the average cost of an ETF is 0.16%, about one-fourth of the cost of the average mutual fund. The biggest ETF in our Core portfolio, for example, charges 0.02%.
We make it easy to see the fund fees for each investment at Betterment. Simply navigate to the Holdings tab of any goal, where you can toggle between the “Fund fees per year” expressed as a percentage of your assets or a dollar amount.
Some advisors are less than forthcoming about the fees tied to their services or the investments they choose. So ask questions, and consider it a red flag if they don’t make it easy to understand your all-in costs.
Returns
Here’s where things get tricky, because comparing apples-to-apples returns between different providers and their various portfolios can be difficult. Some may be selling apples, while others may be selling a low-cost, globally-diversified assortment of fruit.
But you can level-set somewhat by comparing portfolios with 1) similar allocations of stocks and bonds and 2) similar levels of diversification. U.S. equities have outperformed international markets since the Great Recession, but those tables were turned for extended stretches in the 80s, 90s, and 2000s, and they very well could turn again.
2. Personalization
For many investors, it’s important to know what they’re investing in—and to feel excited about it. So if your old 401(k)’s “2050 Target Date Fund” doesn’t exactly set your heart aflutter, try scoping out alternatives. It’s why we build easy-to-understand portfolios appealing to a wide range of interests from socially responsible investing to innovative technology. Each one can be customized to your specific target date and easily updated when life happens and circumstances change.
3. Goal alignment
Consolidating more of your retirement accounts under the same roof unlocks several benefits. Asset location, as previously covered, is one. Asset allocation, or the ratio of different asset types like stocks and bonds, is another. It’s best when accounts serving the same goal add up to your preferred asset allocation, and that can be hard to accomplish when they’re spread across multiple advisors. At Betterment, you can nest multiple accounts under the same goal and easily set one asset allocation for all of them.
Special considerations for tax-advantaged accounts
If you’re considering moving tax-advantaged accounts like 401(k)s, 403(b)s, and IRAs, keep a few more things in mind.
Account compatibility – Deciding what kind of account to move to can make for a dizzying decision, but in a nutshell:
Roth accounts must be moved to a fellow Roth account.
Traditional IRAs typically move into traditional IRAs. Exceptions include some cases of backdoor Roth conversions.
401(k)s can flow into either a 401(k) or IRA.
Here’s a simplified version of the IRS’s infamous rollover chart to help:
Roll to
Roth IRA
Trad. IRA
Trad. 401(k)
Roth 401(k)
Roll from
Roth IRA
✓
X
X
X
Trad. IRA
✓
✓
✓
X
Trad. 401(k)
✓
✓
✓
✓
Roth 401(k)
✓
X
X
✓
Some important qualifiers depend on your exact move, so we suggest studying the full chart carefully. A big one to call out is that any traditional (i.e. pre-tax) funds moved to a Roth (i.e. after-tax) account must be included in your taxable income for that year and taxed accordingly. It’s one reason why we highly recommend working with a tax advisor, especially if your specific case isn’t so cut and dry.
Access – After you leave a job, your 401(k) from that job is still yours, and you can still change its investments, but you can no longer contribute to that specific 401(k) account.
Avoiding taxes – In most cases, you can move tax-advantaged accounts to a new provider and pay zero dollars in taxes, but if you simply cash them out and pocket the money before the age of 59 ½, those funds are subject to a 10% early withdrawal tax on top of ordinary income tax, with few exceptions.
Special considerations for taxable accounts
Moving taxable accounts potentially comes with (surprise, surprise) tax implications. The first thing to do is suss out which of your old assets can be moved “in-kind” to a new provider. This means the new provider is able to accept the new assets, either slotting them into your new portfolio as-is or selling them on your behalf and reinvesting the proceeds.
Some assets first need to be sold before you can transfer the funds. In these cases, you can first work with a new provider (like us!) and a tax advisor to estimate the potential tax hit. Then, if you decide to move ahead, you’d work with your old provider to liquidate those assets before transferring the funds.
A sneak peek of how we make moving easier
The process of actually packing up and making a move can be complicated. It doesn’t help that it takes two advisors to tango, and your old provider may not make things easy. But we do everything possible on our end to help streamline the process.
That includes letting you quickly initiate a transfer or rollover in the Betterment app. Some transfers can be serviced entirely online, whereas other transfers and most rollovers require some paperwork.
If you’re considering moving $20k or more, our Licensed Concierge team is available at no cost to walk you through all the considerations above, size up whether a move is in your best interest, and should you decide to switch, help move your old assets to Betterment.
Because whether moving to a new house or a new advisor, it never hurts to have a little help.
Before going public at a record $1.77 trillion, SpaceX detailed plans in its S-1 of building a lunar economy by setting up factories on the moon to make AI satellites. For Musk’s vision to turn into reality, someone needs to figure out how to transport equipment to the moon, generate electricity there, and keep communication lines connected to Earth.
NASA is putting money on the table to do it at scale. The federal space agency announced on Nov. 7 it selected eight companies including SpaceX, Blue Origin, and Lockheed Martin Space to compete for contracts worth up to $10 billion to transport equipment and infrastructure to the moon. It’s part of NASA’s goal of building a permanent lunar outpost for astronauts to inhabit.
“We are building the Moon Base mission by mission,” NASA administrator Jared Isaacman said in the announcement. “When our astronauts return to the Moon, they will arrive with the first elements of the Moon Base already waiting for them on the surface.”
The billions in potential contracts show how intertwined the ambitions of federal space programs and the private space sector have become even as they embrace distinct goals, with NASA focused on establishing a place where astronauts can live and work, and SpaceX eyeing lunar space for manufacturing.
NASA declined to comment, and SpaceX did not respond to Fortune’s request for comment.
Building a moon base
NASA wants to carve out its first permanent outpost on the moon, starting with its first phase of robotic explorations of its south pole to identify promising locations for future infrastructure in 2029, according to its Moon Base website.
Then, between 2029 and 2032, NASA plans to build up power systems, cargo transportation, and communications networks to “support long-term operations” on the moon. After 2032, the agency will focus on making the outpost livable for astronauts so they can do more ambitious research and do “future journeys deeper into the solar system.”
The challenge of getting equipment and supplies up there is why NASA is enlisting outside help. It said the eight companies selected under the Commercial Lunar Payload Services program will be eligible to compete for lunar delivery missions over the next decade, building and operating landers to carry scientific instruments, technology, and other infrastructure.
This is on top of NASA’s existing lunar-related contracting program. NASA said it awarded Blue Origin, Impulse Space, and Arrow Science and Technology a combined $1.3 billion for separate mission tasks. Those tasks include verifying communications systems between the moon and Earth, finding ways to move cargo between the two, and sending drones to survey the lunar surface before astronauts get there.
NASA is also trying to solve the problems of generating electricity and maintaining communication lines. It picked SpaceX to launch satellites aboard a Starship to space in 2028 to test the technology that’ll help astronauts and mission controllers stay connected. The agency also awarded several companies (including the Blue Origin owned Honeybee Robotics) to work on power generation and wireless power transfer for a planned Mini-Communications and Solar Tower (miniCAST).
Musk’s space ambitions
But for SpaceX, these contracts could eventually pave the way for space operations that go beyond shipping astronauts and cargo onto the moon. In its S-1, the company said it intends to build factories on the moon that would use moon-extracted raw materials to manufacture AI satellites, while shipping chips from Earth.
SpaceX said using those lunar materials and taking advantage of the moon’s weaker gravity could “significantly reduce costs and terrestrial resource constraints.” SpaceX also envisions a “lunar mass driver,” which would use “electromagnetic acceleration” to propel satellites without rockets. SpaceX also sees a business opportunity in mining and exporting lunar minerals, estimating the moon has more than 1 million tons of “rare materials” that could go into quantum computing systems and nuclear energy.
But the company’s main goal appears to be setting up a constellation of satellites capable of performing AI computing in space, potentially allowing the company to expand its computing capacity without relying on power-intensive and controversial data centers on Earth.
“This roadmap positions the Moon not only as a potential gateway to Mars and space exploration, but as the first space-based industrial economy at scale,” the S-1 said. “Over time, this infrastructure has the potential to position the Moon as a strategic industrial and transportation node.”
BofA Rewards is Bank of America’s tiered rewards program. If you keep enough in deposits or investments with BofA or Merrill Edge, you can qualify for perks like a bonus on your credit card rewards. We covered the details in The New BofA Rewards: $100k Assets Now Get 50% Credit Card Rewards Bonus, $1M Required for 75% Bonus.
If you’ve reached BofA Rewards Preferred Honors ($100K+) or Premier ($1M+) status, there’s a new perk you can claim for free for a limited time. It’s GHA DISCOVERY Titanium status.
Offer link (login required):
The main perks of Titanium status are:
Free breakfast for you and one guest staying in your room when you book directly with a participating hotel.
A two-category room upgrade at check-in, subject to availability.
Checkout as late as 4 p.m., subject to availability.
What hotels are part of the Global Hotel Alliance (GHA)? Its member brands include Kempinski, Capella, Anantara, Pan Pacific, Marco Polo, Niccolo, The Sukhothai, OUTRIGGER, Viceroy, NH Collection, and others.
Here is the official hotel directory if you want to see what’s available. There aren’t many properties in the U.S., but there are more in Europe.
The offer ends on January 7, 2027. The status lasts through the end of the calendar year after you claim it. If you wait and claim it between January 1 and 7, 2027, your Titanium status will last through the end of 2028. If you claim it now, it’ll only last through the end of 2027. So if you don’t have a stay coming up where you’d use it, I’d wait until January.
If you already have $100K or more with BofA or Merrill Edge and have reached Preferred Honors, you might as well pick up free GHA Titanium status.
HT: FM.
If you like this post, don’t forget to give it a 5 star rating!
Construction equipment rental company EquipmentShare.com (EQPT -21.28%) stock crashed 21% through 10:40 a.m. ET Tuesday despite beating on earnings last night.
Analysts had forecast EquipmentShare to earn $0.12 per share on $1.4 billion in Q3 sales. The company actually earned $0.16 per share on sales of nearly $1.5 billion, according to data from StreetInsider.com.
Image source: Getty Images.
EquipmentShare Q3 earnings
So why are investors so upset with EquipmentShare today? After all, the company grew its revenue by 55% year over year, with rental revenue, in particular, up 49% and equipment sales revenue surging 76%. Net earnings nearly tripled to $20 million.
Still, that was less than half the company’s “adjusted” net income number ($46 million). So while EquipmentShare’s adjusted profit may have been $0.16 per share, its actual earnings calculated under generally accepted accounting principles (GAAP) were just $0.03 per share.
Free cash flow was even worse. Much worse. Operating cash flow so far this year is negative $179 million. Subtract from that the cost of buying equipment to rent (net of equipment sold), purchases of “property and other fixed assets,” and capitalized software costs, and I’d put EquipmentShare’s total cash burn so far this year at more than $1.1 billion, and on course for $1.5 billion in cash burn for the year.
EQPT – EquipmentShare.com
$12.76-$3.45 (-21.28%)
NASDAQ · As of 10:51 AM ET 11/10/26
What’s next for EquipmentShare stock?
EquipmentShare is burning cash like mad. Regardless of what the company says its “profit” might be, this doesn’t give me a lot of confidence in its quality of earnings. Earnings beat or no earnings beat, I’d probably avoid this stock.
With the earnings quality in question, it’s just too risky.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 853%* — a market-crushing outperformance compared to 204% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks ›
*Stock Advisor returns as of November 10, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Thinking about studying Business Management but not sure what the course actually involves?
A Business Management qualification is about more than understanding how businesses operate. It introduces you to essential areas such as Marketing, Finance, Strategy, Leadership and Entrepreneurship, helping you develop practical knowledge and transferable skills that can be valuable across a range of industries.
In this video, you’ll learn:
✅ What a Business Management degree covers and the key subjects you’ll explore
✅ How Marketing, Finance, Strategy, Leadership and Entrepreneurship contribute to business success
✅ What qualification options are available, from Level 3 courses to Bachelor’s and Master’s degrees
✅ How Business Management skills can be applied across different industries and professional roles
✅ How studying Business Management could support your professional development and future career opportunities
Discover what Business Management courses have to offer and explore your study options with Talent Care Education.
📞 Contact Talent Care Education UK:
020 8594 0891 / 020 3457 6170
🌐 www.talentcareedu.com
📍 Barking, East London
Subscribe for more videos about UK university courses, Business Management qualifications, career opportunities, university applications and educational guidance.
Treasury is creating a new system called Treasury .033 to hold Education Department records on federal student loan borrowers, grant recipients, parents and spouses.
Treasury wants records that include Social Security numbers, income and student loan forgiveness history, and it lists research and forecasting among its uses.
Student Defense and EPIC filed comments on November 6 asking Treasury to narrow the system and publish the documents behind it.
The Treasury Department is building a new data system to hold federal student loan and financial aid records on tens of millions of Americans. The system isn’t limited to the defaulted student loans Treasury agreed to collect in March, and it covers people who never missed a payment.
Treasury is creating a new system called Treasury .033 to hold federal student aid records from the Education Department. It published notice of the system in the Federal Register back in October, as the Privacy Act requires for any new system of records.
The Education Department will feed it personal data on federal grant recipients and federal student loan borrowers, under the agreement that made Treasury the new collector for defaulted student loans. The data comes from three Education Department databases, including the National Student Loan Data System.
The system took effect the day the notice was published. Its routine uses control who Treasury can share the records with. Those uses were set to take effect November 6, unless Treasury changed the notice after public comments.
That same day, Student Defense and EPIC filed a 15-page comment (PDF File) asking Treasury to narrow the scope of the system. The comment is the latest pushback on the Education Department’s use of interagency agreements to shift its programs.
Save For Later
Would you like to save this?
We'll email this article to you, so you can come back to it later!
Why It Matters
The Department of Treasury is set to take over collections as phase one of a three-phase project to eventually (and potentially) take over the entire student loan servicing portfolio.
Treasury’s collection job covers about 7.8 million borrowers in default, who owed $179 billion as of December 31, 2025. Treasury .033 reaches much farther. It also covers borrowers in good standing and Pell Grant recipients who never borrowed. Parents and spouses listed on a FAFSA are included too.
The records also go to a different part of Treasury than the one that collects debts. The Bureau of the Fiscal Service runs the Treasury Offset Program that seizes tax refunds for defaulted student loans.
Treasury .033 belongs to the Office of the Fiscal Assistant Secretary and the Office of Economic Policy instead.
What Data Does Treasury Want, And Why Does It Matter?
Treasury wants nearly everything the Education Department knows about a borrower, from the first FAFSA to the final payment. The notice lists 24 categories of records, drawn partly from the database behind your federal student loan history.
Social Security number, date of birth, driver’s license number, addresses, phone and email
Applicants, borrowers, endorsers and co-signers
Family Finances
Social Security numbers, marital status, income and asset information
Parents and spouses listed on a FAFSA
FAFSA And Eligibility
Student Aid Index, dependency status, household data, citizenship and veteran status
FAFSA filers
Student Loan History
Balances, payments, deferments, forbearances, delinquency and default, from origination to final payment
Federal student loan borrowers
Repayment And Forgiveness
Income-driven repayment, PSLF, disability discharge and SCRA records, plus employer names and dates
Borrowers who used those programs
Collections
Offsets, refunds, debt certification and Treasury Offset Program records
Borrowers in default
Customer Service
Complaints, call summaries and recordings, chat transcripts and emails
Borrowers who called, chatted or filed a complaint
School And Program
School and program codes, enrollment and completion dates, median debt and earnings data
Students who received federal financial aid
Source: Federal Register. The College Investor.
Treasury says it wants the records for oversight and management of the federal student aid portfolio. Its stated uses also include research, modeling, forecasting and policy development, along with the transfer and ownership of the portfolio. None of those uses is limited to collecting defaulted student loans.
The scope matters because records with names and Social Security numbers do the most damage if they’re ever exposed in a data breach. The Education Department’s own analytics platform hides that personal information from its users and shares only deidentified results with other agencies, according to the Student Defense and EPIC comment (PDF File). Treasury’s notice doesn’t commit to doing the same.
The notice also lists complaint records, call summaries, chat transcripts and email communications. Records tied to Public Service Loan Forgiveness and other forgiveness programs are included, along with employer names and dates of employment. Borrowers shared those details with the Education Department and its contractors, not with Treasury.
The notice doesn’t say whether IRS data comes along. Every FAFSA contributor must consent to share federal tax information to qualify for federal financial aid, and the Education Department uses tax data to set payments on income-driven repayment plans like RAP.
Treasury .033 lists income, family size and Student Aid Index values but never says where those figures come from. Federal tax law limits how that data can be reused, so Student Defense and EPIC asked Treasury to say whether any of it enters the system.
Which Borrowers Are Covered?
Anyone with federal student loans or federal grants on record falls within the notice, along with the parents and spouses on their FAFSA. That includes borrowers on every federal student loan repayment plan, not only those in default.
Who’s Covered By Treasury’s Student Loan Data System
Group
Data Treasury Wants
What To Watch
Borrowers In Good Standing
Full student loan history, repayment plan, income and family size
Treasury use of the data before it formally takes over servicing
Borrowers In Default
Collection, offset and debt certification records
Which agency certifies the debt and hears disputes
Pell Grant Recipients With No Student Loans
FAFSA, grant and enrollment records
Advocates say grant-only records go beyond “student loan data”
Parents And Spouses On A FAFSA
Social Security numbers, marital status, income and assets
Whether IRS tax data or figures built from it are included
Borrowers With Forgiveness Or Discharge Records
PSLF, income-driven repayment, disability discharge and SCRA records
How Treasury uses employment and disability records
Source: Federal Register. The College Investor.
Borrowers in good standing are the biggest change. The March 2026 agreement (PDF File) moves their servicing to Treasury only in a second phase, “to the extent practicable,” after Treasury reviews the portfolio.
Student Defense and EPIC say they found no published update to the agreement that starts that phase. House Republicans have filed bills that would move federal student loans, Pell Grants and the FAFSA to Treasury permanently.
How Does The Data Notice Compare To The Treasury Agreement?
The data notice goes well past what the published agreement (PDF File) covers. The agreement limits data sharing to student loan data needed to assess the portfolio and collect defaulted student loan debts.
The notice adds research and policy uses, and it lists ownership of the portfolio as a purpose.
Student loan data needed to assess the portfolio and collect defaulted debts
Grant recipients, all federal student loan borrowers, parents and spouses
Treasury Office
Bureau of the Fiscal Service
Office of the Fiscal Assistant Secretary and Office of Economic Policy
Main Purpose
Collect defaulted student loans through cross-servicing
Oversight, research, modeling, forecasting and policy work
Ownership
Referrals “do not transfer ownership” of the debt
Lists “transfer, ownership” of the portfolio as a purpose
Data-Sharing Terms
Left to an attachment missing from the copy the Education Department posted
Relies on that same unpublished arrangement
Source: Treasury and Education Department. The College Investor.
The ownership language matters because the agreement says referrals don’t move a debt off the Education Department’s books. The agreement also relies on the Economy Act, a law that lets one agency “buy” services from another.
Student Defense and EPIC argue (PDF File) that law can’t be used to hand an agency’s core functions to Treasury. That argument echoes the case against breaking up the Education Department through side agreements.
What Did Student Defense And EPIC Ask Treasury To Do?
The two groups asked Treasury to justify each data transfer and publish the documents behind the system before it shares any federal student loan records. Their comment lists seven requests:
Identify the Education Department rule that allows each data transfer, and say when Treasury first received the records.
Remove the “ownership” and “transfer” purposes, or name the agreement that supports them.
Leave out people with no student loan debt, and use deidentified data for research.
State whether federal tax information, or figures built from it, will enter the system.
Publish the data-sharing arrangement and any privacy impact assessment, then add 30 days to the comment period.
Explain who will certify debts and handle notices, disputes and hearings for borrowers in default.
Respond to the comments in writing before any part of the notice takes effect.
What Does This Mean For Borrowers In Default?
For borrowers in default, the open question is who decides whether a debt is valid. Federal law gives borrowers at least 60 days to show a debt isn’t past due or legally enforceable before a tax refund offset. The notice doesn’t say whether Treasury staff will use these records to certify debts or hear disputes once Treasury runs the Education Department’s Default Resolution Group. The comment says borrowers need to know “which agency’s employees will hear their disputes.”
That question gets more urgent as the government prepares to restart involuntary collections. The Education Department and Treasury plan to resume wage garnishment on defaulted student loans, and garnishment costs more than the lowest-payment repayment plan for nearly every borrower.
Borrowers in default can still get out of default through rehabilitation or consolidation before garnishment starts.
What Can Borrowers Do Now?
Borrowers can’t opt out of Treasury .033. The Privacy Act lets agencies share records without consent when a published routine use covers the disclosure. Borrowers can still protect their personal information and keep track of what the government holds. Treasury’s notice says people can request their records through its Privacy Act procedures.
Log in to StudentAid.gov and confirm your servicer, student loan status and contact information are current.
Watch for letters from Treasury and its contractors if your student loans are in default, and check any new phone number through StudentAid.gov before you pay.
Never share your FSA ID, since student loan scams are surging in 2026.
Request your records from Treasury under 31 CFR 1.26 if you want to see what it holds about you.
How This Connects
Treasury .033 already covers the borrowers and grant recipients that later phases of the Treasury takeover of federal student loans would reach. Phase Two would move servicing for borrowers in good standing, and phase three calls for a Treasury review of FAFSA and eligibility rules, according to the Congressional Research Service.
The data notice came out before either phase appears in a published update to the agreement.
What’s Next
Treasury now has to weigh the public comments and decide whether the notice needs changes. Any changes would show up in a revised Federal Register notice. Borrowers in default should also watch for new contact from Treasury as the Default Resolution Group moves under Treasury oversight.
Editor: Colin Graves
The post Treasury Student Loan Data System: What Borrowers Should Know appeared first on The College Investor.
eBay is running a limited time sale, offering an extra 20% off at The Brand Outlet with promo code SHOPBRANDS20.
The promotion includes eligible tech products such as smartphones, headphones, computers, and other electronics.
Offer Details
Promo Code:SAVE20TECH
Discount: Extra 20% off eligible items.
Maximum Savings: $500 per order.
Limit: Two uses per eBay account.
Expiration: November 15, 2026.
PROMO PAGE
The discount applies to eligible listings when you enter the code at checkout.
Disclosure: This article contains affiliate links. If you take action (i.e. subscribe, make a purchase) after clicking a link, I may earn some beer 🍺🍺🍺 money, which I promise to drink responsibly. When applicable, you should always go through shopping portals to earn cashback. But when that’s not an option, your support for the site is always greatly appreciated. Thank you for reading!
Luxury home prices across the U.S. have fallen year over year for 31 straight months, according to a report by Realtor.com published Monday. But Florida is a major exception, driven by a mix of new wealth flooding the state and too few homes to buy.
Wealthy Americans have been moving to the state for years. Florida took in a net $137 billion in income from other states between 2019 and 2023—and that was before even more billionaires moved to the state ahead of the proposed wealth taxes in California and Washington.
Billionaires including Jeff Bezos, Ken Griffin, Mark Zuckerberg, Larry Page, and Sergey Brin have spent hundreds of millions of dollars on South Florida estates, drawn by no state income tax, the lifestyle, and the business climate. At the same time, the supply of million-dollar homes in many of the state’s markets is shrinking, and the luxury homes that do hit the market are selling faster. That combination is keeping prices up even as they fall across the U.S.
“Low rates lit the match, tight supply fed it, investors added heat, and wealthy newcomers poured gasoline on it,” Arman Javaherian, CEO of the homebuying platform Homa and a former Zillow executive, previously told Fortune.
Meanwhile, the national entry point for luxury housing, meaning the asking price that marks the top 10% of listings, fell to $1,197,014 in October, down 2.3% from a year earlier. The declines were steeper at the top of the market. The threshold for the top 5% of listings fell 4.1%, while the top 1% fell 6.2% to about $5.1 million, the report shows.
But in Florida, the luxury threshold in the Miami-Fort Lauderdale-West Palm Beach metro rose 4.1% to about $2.3 million, and in Naples, it climbed 9% to about $3.75 million, more than three times the national entry point.
Only 12 of the 43 metros Realtor.com analyzed saw luxury prices rise at least 1% over the past year, and five were in Florida: Naples-Marco Island, North Port-Bradenton-Sarasota, Cape Coral-Fort Myers, Miami-Fort Lauderdale-West Palm Beach, and Tampa-St. Petersburg-Clearwater. Naples led the country with a 9% jump to about $3.75 million, making it the only one of the nation’s 10 most expensive luxury markets where prices climbed. Its priciest listings also sold a median 27 days faster than a year ago. In the Miami metro, the luxury threshold rose 4.1% to about $2.3 million.
Realtor.com senior economist Anthony Smith wrote that million-dollar inventory is shrinking in most of Florida’s gaining markets, and “that smaller pool of available homes may be helping support prices, even as luxury thresholds fall nationally.”
Florida is a magnet for billionaires
Citadel founder Ken Griffin relocated his hedge fund from Chicago to Miami in 2022, the same year he paid $106.9 million for a Coconut Grove estate. Now, that enclave in Miami is becoming so popular with the ultrawealthy that luxury hotelier Raffles is building 35 homes there starting at $4.5 million.
“We don’t really play in the middle market. We continue to see tremendous amounts of wealth moving into Florida, especially South Florida,” Camilo Miguel Jr., founder and CEO of Mast Capital, one of the partners on the project, previously told Fortune.
Amazon founder Jeff Bezos also sold his $63 million Seattle mansion for million and has spent $237 million on three properties on Indian Creek, the island nicknamed “Billionaire Bunker.” In September, a Delaware LLC reportedly tied to Bezos paid $69.5 million for an oceanfront estate in nearby Golden Beach. Meta CEO Mark Zuckerberg and his wife, Priscilla Chan, also closed on a $170 million Indian Creek estate this year, and Google cofounder Larry Page spent about $173.4 million on two Coconut Grove properties.
“Someone buying a $20 million or $50 million home in Miami is coming for no state income tax, the lifestyle, and the business climate,” South Florida luxury real estate advisor Michael Martirena told Fortune last week. Under Florida’s newly approved Amendment 3, the yearly cap on taxable-value increases for second homes will also drop from 10% to 5%. Experts said that change matters most to wealthy owners with multiple properties.
Elsewhere, the luxury market is still coming down from its pandemic-era gains. The pandemic packed years of luxury price growth into roughly 24 months, and as of May, the typical luxury market had held onto only 59% of that run-up, according to a June Realtor.com report.
In October, San Jose’s luxury threshold dropped 12.1% from a year earlier, New York-Newark-Jersey City’s fell 11.3%, and San Francisco’s fell 7.1%. Realtor.com has attributed San Francisco’s luxury slump primarily to tech-sector layoffs, people moving out of the area, and a smaller pool of buyers.
