Miami Economy: Finance, Tourism, and Latin America

The Miami metro area — formally Miami-Fort Lauderdale-Pompano Beach — is the largest metro economy in Florida and one of the most internationally connected in the United States. It is the U.S. financial gateway to Latin America, a top global tourism destination, and one of the busiest cruise and container ports in the country. Miami's economy is shaped by trade, travel, and migration to a degree no other large U.S. metro matches.

This is a plain-English tour of how the Miami metro economy works. For the state-level picture, see Florida Economy. For the country-level view, see The State of the U.S. Economy and the broader Economy hub and city cluster.

How big is the Miami metro economy?

For example, recent metro GDP for Miami-Fort Lauderdale-Pompano Beach has run around $440 billion, according to the Bureau of Economic Analysis. Metro population is roughly 6.2 million, per the U.S. Census Bureau. That makes the Miami metro larger by population than 32 of the 50 U.S. states.

The biggest industries

A handful of sectors do most of the work in the Miami metro economy:

• Tourism and hospitality — beaches, year-round warm weather, and a large convention and cruise industry drive a major travel sector. PortMiami is one of the busiest cruise ports in the world.
• International finance — Miami is the U.S. banking hub for Latin America, with the largest concentration of foreign-bank offices outside of New York. Wealth-management firms have grown rapidly.
• Trade and logistics — PortMiami and Port Everglades together handle a large share of U.S. trade with Latin America and the Caribbean. Miami International is one of the largest freight airports in the country.
• Real estate and construction — luxury residential and commercial construction, plus the back-end services that go with them, are a meaningful share of the metro economy.
• Healthcare — Jackson Health System, Baptist Health, the University of Miami Health System, and Cleveland Clinic Florida together employ huge numbers of workers across the metro.
• Tech and venture capital — a fast-growing cluster of crypto, fintech, and software firms, accelerated by the post-2020 inflow of talent from the Northeast and California.
• Media and entertainment — Miami is the U.S. capital of Spanish-language media, with major operations from Univision, Telemundo, and a large independent music industry.

Jobs and wages

Metro labor data is published by the Bureau of Labor Statistics Southeast region. For example, the Miami metro unemployment rate has typically run close to or a tick below the national average, helped by tourism hiring and steady population growth.

The City of Miami uses Florida's statewide minimum wage, which is being phased up to $15 per hour under a voter-approved schedule and is already well above the federal floor of $7.25. The latest figure is at the Florida Department of Economic Opportunity.

Cost of living

Miami's housing costs have risen sharply since 2020 and are now well above the national average, even though the metro's overall cost of living still tracks closer to the national average. For example, recent HUD Fair Market Rent for a two-bedroom in the metro has run around $2,300 a month, with Miami Beach and Coral Gables far higher and parts of Hialeah and Homestead lower. Current county-level numbers are at HUD User.

The federal government tracks region-specific inflation data through the BLS Southeast region. Miami's CPI has run noticeably above the national average since 2021, partly because of fast rent growth.

Taxes in Miami

Florida has no state income tax, so Miami residents pay no state or local tax on wages. Combined sales tax in Miami-Dade County is 7%, made up of the state's 6% base plus a 1% county surtax. Property taxes are moderate by U.S. standards but vary by city and homestead status. State rules live at the Florida Department of Revenue, and you can read more about how sales tax works in our glossary.

How the Miami metro fits into the national picture

Miami is the U.S. economic doorway to Latin America. A huge share of trade, banking, and travel between the U.S. and Latin America passes through the metro, which makes Miami unusually sensitive to economic conditions outside U.S. borders. When South American currencies weaken, when Caribbean tourism slows, or when European travelers pull back, Miami feels it before most other U.S. metros do.

Migration and the housing market

Miami has been one of the largest beneficiaries of post-2020 migration from the Northeast and California, drawn by no state income tax, year-round warm weather, and a more permissive business climate. That inflow has accelerated population growth, pushed up rents, and brought a wave of finance and tech firms that have opened or expanded offices in the metro. Federal data on state-to-state migration lives at the U.S. Census Bureau.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and HUD User for the most current data on the Miami metro.