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. Sign up To receive future editions delivered directly to your inbox.
Housekeepers in Palm Beach and South Florida are cleaning up, often earning salaries as high as $150,000, according to staffing firms, and bidding wars among luxury property owners are becoming common.
Massive wealth migration to Florida from New York and other high-tax states has created record demand for domestic workers in Florida’s elite enclaves, especially Palm Beach. Demand has surged for housekeepers (now called “hotel managers” or “estate managers”) as well as nannies, cooks, drivers and personal security guards, according to staffing agencies.
It’s the shortage of housekeepers, however, that creates the greatest chaos for wealthy homeowners. Many wealthy immigrants to Florida purchased large houses and now needed someone to clean them. Restaurants, resorts and businesses are also competing for cleaning staff. The result: Typical wages for housekeepers have soared from about $25 an hour in 2020 to $45 or $50 an hour today, according to some agencies.
“I’ve been doing housekeeping for 30 years and I’ve never seen anything like this,” said April Berube, founder of The Wellington Agency, which arranges for people in Palm Beach, Miami, New York and other locations. Housekeeping staff. “We’re seeing a boom in people relocating, especially in Palm Beach and Miami.”
In Palm Beach, housekeepers with experience in wealthy households typically earn between $120,000 and $150,000 a year, plus a 401(k) plan, health care and benefits, including overtime.
“For a steward, it’s great,” Berube said. “It’s extremely difficult for us. It’s a severe shortage.”
Melissa Psitos, founder of Lily Pond Services, said she recently had a Florida client who wanted to hire a housekeeper for $75,000 a year. They ended up paying $110,000, which was reasonable for the market. Executive housekeepers often help direct staff members of other housekeepers and laundresses, and they earn even more. Pucitos said she knows a chief housekeeper in Palm Beach who makes $250,000 a year, including overtime, and travels to various residences with his family.
“The supply is low,” she said.
Bidding wars among wealthy homeowners have become commonplace. Staffing agencies post “wanted” ads all over the Internet and throughout West Palm Beach. Customers are increasingly frustrated.
“They were shocked at first, they said, ‘There’s no way I’m going to pay this,'” Berube said. “I even feel uncomfortable giving them these numbers. But when they try to hire someone with less experience at a lower price, they almost always come back and tell us, ‘I learned my lesson. We’re willing to pay for the experience. Pay.'”
Berube said housekeepers for the wealthy required highly specialized skills – from how to move around the house quietly and unnoticed, to how to carefully clean antiques, tableware and art, and how to properly wash and iron delicate items. Linen.
“Working in a wonderful home requires specific tools and skills,” she said.
With so few qualified candidates, Berube said she is considering starting a school to teach high-end housekeeping skills and train more domestic workers.
“I’d love to do it, but I don’t have the time because we’re so busy looking for employees.”
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