Wealthy demand is driving Palm Beach housekeepers to earn $150,000 annually.

• The migration of wealthy individuals from high-tax states to Florida has resulted in a surge in demand for household staff in exclusive Florida communities, particularly in Palm Beach.
• The scarcity of housekeepers in affluent homes and high-end hotels has resulted in an increase in hourly wages.
• April Berube, founder of The Wellington Agency, has been placing staff for 30 years and has never seen anything like this, she said.

The original article was published in CNBC's Inside Wealth newsletter with Robert Frank, providing a weekly guide for high net worth investors and consumers. To receive future editions, subscribe and have them delivered directly to your inbox.

Staffing companies report that housekeepers in Palm Beach and South Florida are in high demand, with salaries frequently exceeding $150,000 and intense competition among mansion owners for their services.

The surge in demand for household staff in elite Florida enclaves, particularly Palm Beach, has been driven by the mass wealth migration from high-tax states like New York. Staffing agencies report a rise in demand for butlers, nannies, chefs, drivers, and personal security personnel.

Wealthy homeowners in Florida are facing a cleaning crisis due to the shortage of housekeepers. These homeowners bought large homes and now require cleaning staff to maintain them. Hotels, resorts, and businesses are also competing for cleaning personnel. As a result, the typical pay for housekeepers has increased from $25 per hour in 2020 to $45 or $50 per hour today, according to some agencies.

"April Berube, founder of The Wellington Agency, which places household staff in Palm Beach, Miami, New York and other locations, stated that she has been in the staffing industry for 30 years and has never witnessed anything like the current situation. She explained that they have experienced a significant increase in demand from people relocating, particularly to Palm Beach and Miami."

In Palm Beach, housekeepers with experience in wealthy homes typically earn between $120,000 and $150,000 annually, along with 401(k) plans, health care, and benefits, including overtime.

"For housekeepers, it's wonderful," Berube stated. "However, for us, it's extremely difficult. It's a severe shortage."

Melissa Psitos, founder of Lily Pond Services, stated that a recent Florida client sought to hire a housekeeper for $75,000 annually. However, they ended up paying $110,000, which was reasonable for the market. Executive housekeepers, who often manage a team of housekeepers and laundresses, can earn even more. Psitos shared that she knows a head housekeeper in Palm Beach who earns $250,000 annually, including overtime, and travels with the family to their various homes.

"There is just not enough supply," she said.

Wealthy homeowners are frequently engaging in bidding wars. Agencies are placing "Help Wanted" ads online and in West Palm Beach. Clients are becoming increasingly agitated.

"Berube stated that initially, when presented with the numbers, the individuals are in shock and respond with, "No way I'm paying that." However, when they attempt to hire someone with less experience at a lower cost, they often return and say, "I learned my lesson. We are willing to pay for the experience.""

The wealthy housekeepers require specialized abilities, such as moving silently and unnoticed, cleaning delicate items like antiques, flatware, and fine art, and washing and pressing fine linens correctly.

To work in fine homes, you require particular tools and abilities, as she stated.

With a shortage of qualified candidates, Berube is considering starting a school to teach high-end housekeeping skills and increase the number of housekeepers.

"Although I'd like to do it, I can't because we're occupied with searching for employees."

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