Florida: Let the Sunshine In

The U.S. Census Bureau estimates that approximately eight million people relocate between states every year. In 2024, the most recent data available, over 873k people moved to Florida pushing the population to 23.5 million. Covid triggered a significant inflow of people from other parts of the country as has a favorable tax regime, and for many, the decidedly Red State tilt is attractive. The median age of a Florida resident is 42.6 years, ranking fifth oldest state in the country.

With this migration, Florida's exceptional healthcare sector has become only more essential. As a keynote speaker at the recent Moffitt Cancer Center'sBusiness of Biotech Summit, it was quite revealing to hear about the Florida healthcare and life science ecosystem which is both wide and deep. Last week the Administration released a proposal to amend the Office of Management and Budget's (OMB) Guidance for Federal Financial Assistance framework which determines how the federal government allocates research grants. This risks deeply politicizing where and to whom these funds will go with unintended knock-on effects.

Domestic Migration Patterns (2020 - 2024)

Source: Census Bureau

This shifting demographics will have profound implications across many dimensions of society and the domestic economy. For one, the migration of wealth to Florida alongside longer life spans will see continued explosive growth in the long-term care sector. The Federal Reserve estimates that people born before 1964 (Baby Boomers and older) have $110 trillion of net worth. Cerulli Associates estimates that $2 trillion of this will be passed to younger generations and another $1.3 trillion will be passed on to spouses this year. Overall, the Federal Reserve estimates that the amount of wealth that can be bequeathed to the next generation is 424% of GDP (2021 data), up dramatically from 256% 25 years ago.

Net Wealth in U.S. by Generation

Source: Federal Reserve

Florida enjoys a historic strength anchored in a low-cost manufacturing base, both in pharmaceuticals and medical device. Around that base has risen an emerging research cluster as evidenced by the $1.5 billion of R&D expenditures by Florida universities. The National Institutes of Health has contributed nearly $930 million in research funding this past year. Expect that to increase given the OMB's directives to allocate research funds to projects and states more in line with the Administration's political agenda. This does not augur well for other life science clusters in Blue States that have been historic strongholds of innovation.

Select Florida estimates that the state now has over 1,000 biotech R&D establishments and more than 1,400 medical device manufacturers, making life sciences the second most significant industry in Florida. The National Center for Science and Engineering Statistics highlighted that there are more than 1,500 clinical trials being run in the state. It is believed that there are more than 90k professionals in the life sciences sector in Florida.

These data do not even begin to capture the extraordinary healthcare services sector in the state given the needs of the older population. The Florida Hospital Association estimates that there are 321hospitals in the state which contribute nearly $200 billion of economic activity and accounts for 345k jobs.

Florida Healthcare Ecosystem

Source: J.P. Morgan, BioFlorida

It is not surprising that investors have identified Florida as an important cluster to support. According to Pitchbook, there was over $1.0 billion invested in 117 healthcare and life sciences companies in Florida in 2025 with the year-to-date pace set to eclipse the amount of capital invested, granted in fewer companies. There has been a marked increase in the number and size of later stage financings over the past five quarters, suggesting a rapidly maturing innovation ecosystem as well. This trend underscores the strong research and manufacturing infrastructure and the accommodative regulatory environment.

Florida Healthcare and Life Sciences Venture Capital Activity

Source: Pitchbook

Given the positioning of how business-friendly Florida is and that it is arguably the cradle of crypto, it is somewhat ironic that the state has launched a very public investigation into OpenAI to determine culpability in its role in mass shootings on Florida campuses. At its essence these cases assert that AI companies are criminally liable for their products. Given the extraordinary potential of AI in healthcare and life sciences, the adjudication of these cases may reflect how prepared the state is to unleash these capabilities for scientific research.

Additionally, this debate highlights the struggle balancing privacy rights and public safety. More fundamentally, which jurisdiction - the states or federal government - ultimately should resolve these issues. The Administration issued yet another executive order last week requiring its oversight of new AI models. Combined with the OMB's edict, the federal government will cast a long dark shadow over scientific research.

Last week also saw the Republican Florida legislature add a measure to the fall ballot which dramatically reduces property taxes in the face of rapidly escalating property values given the influx of wealthier residents. Such a change has raised concerns that education, safety net healthcare, and other public infrastructure will not be adequately funded.

There are a few other possible storm clouds on the horizon. Notwithstanding that Tampa was just ranked the second most attractive city for recent college graduates according to ADP, the rapidly rising living costs have forced many middle-class Floridians to consider relocating away from the state. The influx of wealth and the current Administration's hostility to immigrants are at risk of hollowing out the middle-class. Data from the Internal Revenue Service calculated that new arrivals to Miami-Dade County between 2022-2023 had an average income of $178k, the highest in the country, more than twice those who departed. An analysis by the Wall Street Journal concluded that deaths outnumbered births in Florida each year since 2020, a trend likely to get worse given the age distribution.

We hope you will join us for our next quarterly Expert Roundtable Series on June 16, 2026 at 12:00pm ET ( register here ). To stay connected, subscribe here for the latest updates, news, and insights from Flare Capital Partners.