A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide for high-net-worth investors and consumers. Register to receive future issues, directly to your inbox.
Housekeepers in Palm Beach and South Florida are cleaning, with salaries often topping $150,000 and bidding wars between mansion owners becoming common, according to staffing firms.
The mass migration of wealth to Florida from New York and other high-tax states has created record demand for domestic helpers in Florida's elite enclaves, especially Palm Beach. According to employment agencies, demand has increased for butlers (now called “hospitality managers” or “property managers”), as well as nannies, chefs, drivers and personal security.
However, it is the shortage of housekeepers that has created the biggest mess for wealthy homeowners. Many of the wealthy emigrants to Florida bought large houses and now need people to clean them. Hotels, resorts and companies also compete for cleaning staff. The result: The typical salary for stay-at-home moms has skyrocketed from about $25 an hour in 2020 to $45 or $50 an hour today, according to some agencies.
“I've been hiring for 30 years and I've never seen anything like this,” said April Berube, founder of The Wellington Agency, which hires domestic staff in Palm Beach, Miami, New York and elsewhere. “We've seen a big boom due to people relocating, especially in Palm Beach and Miami.”
In Palm Beach, experienced housewives in wealthy households typically earn between $120,000 and $150,000 a year, along with 401(k) plans, health care and benefits, including overtime.
“For housewives it's wonderful,” Berube said. “It's extremely difficult for us. It's a serious shortage.”
Melissa Psitos, founder of Lily Pond Services, said she recently had a client in Florida who was hoping to hire a housekeeper for $75,000 a year. They ended up paying $110,000, which was reasonable for the market. Executive housekeepers, who often help manage the staff of other housekeepers and laundresses, can earn even more. Psitos said she knows a housekeeper in Palm Beach who makes $250,000 a year, including overtime, and travels with her family to her different homes.
“There's just not enough supply,” he said.
Bidding wars between wealthy homeowners have become common. Staffing agencies are posting “Help Wanted” ads all over the web and throughout West Palm Beach. Customers are increasingly frustrated.
“At first they're shocked and say, 'There's no way I'm paying that,'” Berube said. “It's even uncomfortable for me to give them the numbers. But when they try to hire someone for less money, with less experience, they almost always come back and say, 'I learned my lesson. We're willing to pay for experience.'”
Berube said housekeepers of the wealthy need very specific skills, from how to move quietly and unseen around the house, to how to carefully clean antiques, cutlery and artwork and how to properly wash and iron fine linens.
“There are specific tools and skills needed to work on fine homes,” he said.
Berube said that with so few qualified candidates, she is thinking about launching a school to teach high-level cleaning skills and produce more housekeepers.
“I would love to do it, but I don't have time as we are busy trying to find staff.”
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