December 22, 2025
As the holidays approach, Manhattan's ultra-luxury real estate market is hitting the seasonal pause button. According to the latest Olshan Luxury Market Report featured on Realtor.com, only 21 contracts were signed for homes priced at $4 million and above in the week ending December 21 – a drop of 12 from the prior week.
Donna Olshan, the report's author, notes that this slowdown is typical: "The luxury market tends to go quiet from mid-December until the second week in January. People evacuate New York for vacation, and it's low tide in terms of luxury activity."
Even so, the top deal of the week was a stunning Fifth Avenue duplex overlooking Central Park, listed at $16.2 million – a rare "trophy" property with sweeping views of the park, skyline, and Metropolitan Museum of Art.
These iconic Central Park views remain the gold standard for New York luxury, rewarding properties that deliver them with strong demand when priced right.
But while Manhattan buyers take a holiday breather, many affluent New Yorkers are making a more permanent move – south to Florida's Treasure Coast, and specifically to Vero Beach.
The Vero Beach Alternative: Luxury Views, Lower Taxes, and Better Value
In Vero Beach, the luxury market isn't slowing down – it's thriving, powered largely by cash buyers relocating from high-tax states like New York. Recent reports highlight Vero Beach as one of America's strongest cash-driven luxury markets in 2025, with over 70% of high-end transactions paid in full cash.
Here, instead of crowded Central Park vistas, buyers are snapping up direct oceanfront estates with private beaches, Intracoastal access, and endless Atlantic horizons – often at a fraction of Manhattan prices.
Oceanfront compounds in exclusive enclaves like John's Island or barrier island estates routinely feature resort-style pools, private docks, and gated privacy – all while median luxury prices hover around $1.5–3 million for single-family homes, with ultra-luxury oceanfront reaching $10–25 million.
Compare that to Manhattan's $5.5 million median asking price for last week's contracts, and the value proposition is clear.
The Tax Advantage: A Game-Changer for New York Relocators
The biggest draw? Taxes.
- Florida has no state income tax, no estate tax, and no inheritance tax – a massive savings for high-earners fleeing New York's combined state and city income tax rates that can exceed 10%.
- Property taxes in Vero Beach (Indian River County) average around 0.99% effective rate – roughly half of New York City's typical 1.8–2.4% burden on high-value properties.
For a $10 million home:
- In Manhattan: Annual property taxes could easily top $150,000–$200,000.
- In Vero Beach: Closer to $90,000–$100,000, plus homestead exemptions for primary residents.
Add year-round sunshine, world-class golf, serene beaches, and a refined, low-key lifestyle – and it's no wonder Vero Beach is attracting wealthy relocators seeking privacy and financial advantages.
As one local expert notes, Vero Beach offers "serene beaches, world-class golf, and a low-key elegance that resonates with discerning buyers fleeing urban density."
Final Thoughts: Holiday Pause in NYC, Permanent Paradise in Vero Beach
While Manhattan's luxury market catches its breath this holiday season, Vero Beach is wide open for business – with stunning ocean views, stronger cash-driven demand, dramatically lower taxes, and real estate prices that deliver far more space and serenity for the money.
If you're a New York luxury buyer tired of the hustle (and the tax bill), perhaps it's time to trade Central Park for the Atlantic Ocean.
Vero Beach isn't just a vacation escape – it's becoming the new permanent address for smart, affluent relocators.
