Real Estate Market in Miami: Prices, Trends, Forecast 2023 (2023)

The real estate market in South Florida is strong.House prices continue to rise and stocks remain very limited. It is a seller's market, with many sellers getting the highest price. It's also because more and more people and businesses in the United States are moving to South Florida from high-tax, high-density (no income tax, pro-business) areas. An increase in foreign buyers is also helping the Florida real estate market.

The Miami metropolitan area is the seventh largest in the United States and the 72nd largest in the world. Include metropolitan areasMiami city(financial and cultural core of the metropolis),Miami-Dade, Broward, and Palm Beach countiesThese are the first, second, and third most populous counties in Florida. Greater Miami includes the greater area defined by the U.S. Census Bureau as the Miami-Port Saint Lucie-Fort Lauderdale Combined Statistical Area.

This larger area includes Martin, St. Lucie, and Indian River counties in the northern part of Palm Beach County. typical value of a homeMetro Miami-Fort Lauderdale-West Palm BeachAnd$ 445.114.Miami-Fort Lauderdale-West Palm Beach subway prices up13,5%Last year, Zillow predicted they would rise2.0% for the next twelve months.

itreal estate market in miamiThat remains strong even with high interest rates. according to a new oneRapportAnalysts at Goldman Sachs expect the Miami metro area to be one of the few major real estate markets not to experience price declines in 2023. Goldman Sachs expects Miami home prices to rise slightly towards the end of the year, making it one of only two major markets in its study to show growth.

2022 is a successful year for the Miami-Dade County real estate market,31,627 homes soldA total of 19,377 apartments were sold, the second highest in Miami history, according to the Miami Association of Realtors and Multiple Listing Service. Despite rising mortgage rates in 2022, Miami's real estate market is showing resilience and insatiable demand. The 30-year fixed mortgage rate will start at 3% in 2022 and is now 6.11%.

MIAMI REALTORS® Chief Economist predicts that inflation will drive mortgage rates down to 5% - 5.5% by the end of 2023, which could lead to a more active housing market in the second half of 2023. While total inventory increases, the most growth in the luxury segment of the market. There is still a shortage of inventory in the $400,000 to $600,000 price range.

Miami's real estate market continues to show resilience in February 2023

Miami's real estate market has been on a steady upward trend for more than a decade, with real estate prices continuing to rise, albeit to a lesser extent. according toMiamiInes Hegedus-Garcia, chairman of the board of directors, said Miami's real estate market is unique because of its high cash transactions and high migration rates. The recent normalization of the pandemic-fueled home buying era suggests that sellers are increasingly open to negotiating contract terms that offer greater flexibility.

Despite the challenges of the past two years, the median price of single-family homes in Miami-Dade County will increase 3.5% year-over-year in February 2023, from $536,000 to $555,000. It was the 135th consecutive month of price increases, the longest record on record. Meanwhile, the median price of an existing apartment rose 2.6% year-over-year, from $380,000 to $390,000. Median condom prices have increased in 136 of the past 141 months.

One of the factors driving the Miami real estate market is rising local household incomes. Miami and West Palm Beach are among the top 10 US cities for average home buyer growth (2019 vs. 2021). Median homebuyers' incomes in Miami will increase 16.9% in 2021 to $104,000, compared to $110,000 in West Palm Beach, according to a report from Redfin.

House prices are determined by supply and demand, and in the case of Miami, low supply and high demand drive up prices. Miami's inventory of single-family homes (3.8 months) and condominiums (4.5 months) remains low. In addition, rents, which are also rising, are one of the mainstays of house prices.

Active inventory totals 10,730 units by the end of 2022, a 48.7% decline from pre-pandemic levels in 2019. However, the number of active listings increased 37.4% year-over-year from 7,484 to 10,282 by the end of February 2023. This suggests supply may increase.

In February 2023, the inventory of single-family homes increased 63.5% year-over-year, from 2,212 active listings last year to 3,617 last month. The inventory of condominiums also increased 26.4% year-over-year to 6,665 units from 5,272 units during the same period in 2022. Despite the increase, the number of new listings of single-family homes in Miami fell 20.6 percent year-over-year, from 1,519 to 1,206. New apartment listings also fell 22.7 percent, from 2,419 to 1,871.

Monthly supply of single-family homes increased 123.5% year-on-year to 3.8 months, indicating a seller's market. The inventory of existing apartments increased by 73.1% to 4.5 months, also indicating a seller's market. A balanced market between buyers and sellers ensures a supply of 6 to 9 months.

In conclusion, despite the challenges of the pandemic, the Miami real estate market continues to show resilience. The region's unique characteristics, including high migration rates and cash transactions, stimulate demand and help keep prices high. While low inventory levels have created a seller's market, the recent increase in supply could benefit buyers in the coming months.

Forecasts for the real estate market in Miami for 2023

What are the Miami real estate market predictions for 2023? According to NeighborhoodScout, Miami real estate has been valued at 203.48% over the past decade, an average annual appreciation of 11.74%, putting Miami in the top 10% of cities nationwide in terms of property valuation.

Over the past twelve months (Q4 2021 to Q4 2022), Miami still has the highest valuation rate in the US at 24.03%. Miami's valuation percentage for the most recent quarter (Q3 2022 to Q4 2022) was 2.87%. These numbers all confirm experts' positive predictions for the Miami real estate market.

Let's take a look at the price trends that Zillow has recorded over the past year. Median home prices in Miami-Dade County have risen almost over the past 12 months22,4%(Zillow home value index).The median home value in Miami-Dade County is $498,818.The value is seasonally adjusted to include only mid-priced homes.

• Metro Miami-Fort Lauderdale-West Palm BeachHome Values ​​Rise22,6%Last year, Zillow predicted they would rise1,8% until December 2023.
• the province of Miami-DadeHome Values ​​Rise14,5%in the past year.

Investing in real estate in Miami:Is Miami a good place to invest?

Successful real estate investing - whether you are in Miami or anywhere else in the world - is all about timing the market right. Knowing when to enter the real estate market can often be challenging.Is Miami a good place to invest in real estate?Many real estate investors wonder if buying real estate in Miami is a good investment.

Miami is a fairly walkable city in Miami-Dade County. Miami gets the most attention as a tourist destination, although it regularly makes headlines when it appears to be hit by a hurricane. However, Miami is a thriving major city with a strong real estate market. Miami has nearly half a million inhabitants.

but thatreal estate market in miamiIt's much more than that - it encompasses most of Southeast Florida and a population of over 5 million people. what makesreal estate market in miamiThe seventh largest real estate market in the United States and the second largest in the Southeastern United States. Strong immigration and other real estate market fundamentals in Miami make it a great place to invest in real estate.

While this article alone is not a comprehensive resource for making a final investment decision in Miami, we have gathered ten fact-based positives for those eager to invest in the Miami real estate market. Investing in Miami real estate will give you great returns in the long run as Miami home prices are rising year after year. Let us now discuss the state of the Miami real estate market, which can help investors who are eager to buy an investment property in this city.

A relatively affordable market for investors

The median home price in Miami-Fort Lauderdale-West Palm Beach ($570,000) is significantly lower than many other major markets such as San Francisco-Oakland-Hayward, CA ($1.3 million), San Diego-Carlsbad, CA The ( $900,000), Los Angeles-Long Beach, CA ($893,200), Seattle-Tacoma-Bellevue, WA ($741,300), Boston-Cambridge-Newton, MA-NH ($698,900 $), Denver-Aurora-Lakewood, CO ($666,000 ), New York-Jersey City-White Plains, NY-NJ ($616,300) according to NAR's Q3 2022 Metropolitan Media Area Price Report and Washington-Arlington-Alexandria DC-VA-MD-WV ($581,300).

Miami is a strong international market

In 2011, almost a third of the inhabitants were born abroad. However, about half of them become citizens, so we can say that Miami is only considered attractive for immigrants. However, the number of foreigners in the Miami real estate market is unusual. Russians, Brazilians, Argentines, Turks, Chinese and British are buying property here much faster than expected. Some believe that buying a property is a safe investment, while others want to use a beachfront apartment as a holiday residence.

Some bought homes in Miami and fled in case their homeland became unlivable, which explains Miami's large Venezuelan expatriate community. Many tourists come to the beach and many people want to live there. Miami's beaches are made even more attractive by the year-round subtropical climate. That helps explain why Miami-Dade's population is growing at about 2% per year, while South Florida's population is generally stagnant. It is considered the fifth fastest growing region in the United States

It ranks first among the top destinations for foreign buyers in the United States. For the 10th year in a row, Florida is the most important market for international traffic in the United States. The real estate market in Miami offers opportunities for those looking to serve tourists. The Port of Miami is known as the Cruise Capital of the World as it is the largest cruise passenger port in the world. Hosts can rent to tourists who want to spend a week in Miami before flying home, or who simply want to enjoy Miami's beaches, cultural events, and sports teams.

geographical restrictions

Many of the world's fastest-appreciating housing markets attract people looking for work and quality of life, but unable to expand housing supply to meet demand.San FranciscoSurrounded by water on three sides, they made matters worse by limiting the height of buildings so they couldn't be built like NYC. In Colorado and Utah, a mix of federal parks and vertical mountains limits where developers can build homes.

We already mentioned that Miami is on the water. Miami has experienced a spate of downtown high-rises, making it the third-tallest skyline in the United States, but other areas have restricted it so that tall buildings don't block the view of the water. However, that doesn't stop Miami's real estate market from being the sixth densest in the United States.

An interesting factor to consider in Florida's real estate market is its large retirement population. Many seniors move to Florida for its mild climate, which is quite immune to price fluctuations. Seniors who already live here, stay in their home. This has resulted in reduced sales in the Miami real estate market, limiting the supply of potential buyers.

This explains why Tampa and Coral remain overpriced markets, even though the jobs there are not that numerous. Retirees who regularly move out of state tend to use their Florida homes as second homes rather than sell them. The Gulf Coast is more of a vacation destination than a retirement enclave, so there's less competition for the limited housing stock.

Economic development and job growth in Miami

Many people move to Miami for work. Miami is Florida's largest metropolitan economy, with the 12th largest GDP in the United States. The World Cities Research Group ranks Miami as an alpha city based on levels of business activity, human capital, and cultural activity. Miami's unemployment rate hovered around 4% (pre-COVID-19); currently in line with, but generally below, the national average. Only Orlando has a better job market.

the province of Miami-DadeIt is a worldwide tourist attraction. Since 2011, Miami-Dade has seen a 20 percent increase in overnight visitors and a 22 percent increase in hotel stays. In 2019, Greater Miami welcomed 24.3 million visitors, an increase of 4.6 percent from 2018. Tourism created a record 146,700 jobs in 2019. While Miami International Airport, the Port of Miami and tourism are the driving forces of the local economy, Miami-Dade has a vibrant small business entrepreneurial spirit.

The Kauffman Foundation regularly ranks Miami as the best city in the US for entrepreneurial activity. For homeowners in the county, life has also improved dramatically over the past eight years. Redlands Market Village is a promising project being planned by the provincial government that will create a vibrant downtown destination in South Dade. The project will provide 2,600 jobs and $351 million to the community during construction. Once completed, it will have an annual economic impact of $40 million and create more than 400 new jobs in addition to the current 800 jobs.

according to a new oneRapportAccording to the University of Central Florida's Economic Forecasting Institute, Florida's economy, as measured by real gross state product, will grow at an annual rate of 3.0% between 2022 and 2025. After contracting 2.8% in 2020, real gross state product increased by 6.9% in 2021.

Florida job growth will continue to outpace national job growth as the job market recovers from a sharp decline. After an annual growth of -5.2% in 2020, the labor market will recover by 2.6% in 2021 and is expected to grow by 5.1% in 2022, 2.3% in 2023, 1.5% in 2024 and 1.2% in 2025. Florida's average job growth in 2021-2024 will be 0.8 percentage points faster than the national economy.

Efforts to reduce unemployment in the state will continue, and Florida's accelerated job creation will help. The unemployment rate increased from 3.3% in 2019 to 7.9% in 2020, before falling to 4.8% in 2021, 3.8% in 2022, 3.5% in 2023 and then rising to 3 .9% by 2025.

The number of homes will continue to pick up, but not fast enough to meet a serious shortage of single-family homes in the short termThe total number of new starts increased from 156,762 in 2020 to 190,061 in 2021, but will slow to 182,663 in 2022, 162,425 in 2023, 156,911 in 2024 and rise to 157,178 in 2025. House prices will slow during this period as supply increases and the demand decreases as mortgage rates rise and affordability decreases.

Miami's huge rental market

Two-thirds of Miami residents rent, with rents comparable to those in New York City. This is partly due to the number of people working in seasonal and casual jobs in the tourism industry. This is partly because the supply of housing is limited in relation to the demand. This is partly because housing costs, also in the interior, are high in relation to local wages. This has led many investors in the Miami real estate market to purchase single-family homes, divide them into multiple units, and rent out each unit individually.

As Florida's largest city, it has several major universities for that reason alone. However, Miami's international appeal and unique status have made it a center for education and research, giving rise to institutions such as Florida International University. There are nearly 40 colleges and universities within a 40-mile radius of Miami, with more than 350,000 students. Ironically, the University of Miami wasn't among them -- it was in the state of Ohio. However, the University of Miami is located in Miami and enrolls over 17,000 students.

The latest trends in the rental market in Miami

About 70 percent of Miami households are renters. In April 2023 the averagerentA one-bedroom apartment in Miami, Florida costs $2,700. This is a7% increasecompared to last year. The median rent for a studio in Miami rose 8 percent last month to $2,240. Median rents for a one-bedroom apartment rose 4 percent to $2,700 and for a two-bedroom apartment rose 4 percent to $3,500.

• The average rent for a two-bedroom apartment in Miami, Florida is currently $3,500. this is a 0%Increasecompared to last year.
• The average rent for a three bedroom apartment in Miami, Florida is currently $4,500. This is a 7%Increasecompared to last year.
• The average rent for a four-bedroom apartment in Miami, Florida is currently $6,000. This is a 13%Reducecompared to last year.

itZumper Miami Metro Area-rapportSubway active ads were analyzed last month to show the most expensive and cheapest cities and those with the fastest rental growth. thisFloridaThe median one-bedroom rent was $1,678 last month.Sunny Isles-strandis the most expensive city, at $2,740 for a bedroom.lauder hillRanked as the cheapest city to rent at $1,500.

Here are the top cities in the metro area where rents are rising. You might want to consider investing in these places as they have strong growth and demand for rental properties. You can also use their historical annual rental growth rates to help predict future increases and decreases.

Cities with the Fastest Rental Growth in the Miami Metro Area (Y/Y%)

• Hialeah saw the fastest rental growth, up 25.7% since this time last year.
• Sunrise came in second with a rent increase of 23.9 percent.
• Miami Gardens was third, with rent increases of 23.4 percent.

Cities with the Fastest Rental Growth in the Miami Metro Area (M/M%)

• Hialeah had the highest monthly rental growth rate at 6.1 percent.
• Plantation rents rose 3.9% last month, the second highest.
• Miami was third, with rent increases of 3.1 percent.

High ROI for landlords

Investing in the Miami real estate market can give you great returns. The high demand for real estate in Southeast Florida relative to demand has limited people's ability to buy, creating a flood of renters. Miami ranks second in the nation for the most costly renters, who pay more than half of their income in rent. Rents are not as high as elsewhere in the US, but considering property values ​​are lower than in Silicon Valley orreal estate market in New York, which is a good return on investment. For example, the median house price is about $350,000, while the median rent is $1,900 per month.

A rent of $1,900 per month would be considered an expense for a household earning $70,000 per year, on an average income of $50,000. Whether you rent to students, low-income workers, or snowbirds, potential investors in the Miami housing market will be pleased to know that it is a landlord-friendly market. Florida has no laws regarding rent control. There is no limit on the deposit and if the rental is three days late you can start eviction. Property damage requires a 7-day conditional notice to quit, while repeat tenancy violations allow a 7-day unconditional notice.

Where can you buy investment properties in Miami?

In any real estate investment, investment, cash flow is gold. The Miami real estate market offers a variety of options for real estate investors, allowing you to choose which rental market to capitalize on and take advantage of. good cash flowInvestment properties in MiamiNeedless to say, means the investment is profitable. Poor cash flow, on the other hand, means you don't have the cash on hand to pay off your debts.

That's why finding the best investment properties in Miami in a growing neighborhood is key to your success. As with any real estate purchase, you need to act wisely. Assess the specifics of the Miami real estate market as you consider buying. When looking for the best real estate investments in Miami, you should focus on neighborhoods with relatively high population densities and job growth. Both translate into a high demand for housing.

There are 47 neighborhoods in Miami. Popular neighborhoods in Miami are Brickell, Kendall, Aventura, Downtown Miami, Little Haiti, Mid Beach, Edgewater, Downtown, Coconut Grove, Brickell, Wynwood, Miami Springs Rings, South Point, Miami Shores, Hialeah, El Portal, Santa Clara, South Beach Southwest Coconut Grove has a median asking price of $1.5 million, making it the most expensive, according to Realtor.com Community. Model City is the most affordable neighborhood, with a median asking price of $280,000. The average rent is about $1,950.

Here are some of the best neighborhoods in the Miami Beach area where you can buy an investment property.

Brickell is one of Miami's most popular affordable neighborhoods.It's on the South Straits of Miami, so it's on the water. However, the average house here sells for around $400,000. That's a relative bargain compared to extremely expensive neighborhoods like Coconut Grove, a few miles south. Brickell is located just south of downtown Miami and has easy access to a large job market.

This is a densely built area, so you'll pay about $480 per square foot. That's slightly above average for Miami. The median rent, on the other hand, is $2,600 per month, slightly higher than the Miami-Dade average of $2,450. Brickell Key also charges about $2,600 per month.

Liberty City is just a few blocks from Key Biscayne.Highway 195 forms the southern border, while Highway 95 forms the eastern border. Being so close to major highways is part of the reason that home prices here average $250,000. Relatively cheap real estate in South Florida explains why it is a warm real estate market despite the corona crisis. Home prices here are up nearly 10% year-on-year and are expected to remain unchanged through 2021.

Overtown is a different neighborhoodCloser is not to the waterfront. It is intersected by Route 395 and I-95. This neighborhood is popular with medical professionals because it is dominated by the Miami Dade College School of Medicine and several hospitals. The average house here is about $250,000. Real estate values ​​were up 5% year-on-year before the coronavirus crisis. The house value is expected to remain unchanged in 2021. Residents are drawn to affordable housing, though owners may appreciate that many move here because of the $1,650-a-month rent.

Here are the ten neighborhoods in Miami with the highest real estate valuation since 2000 - listed in the following wayBuurtscout.com.

1. District North
2. south of little Haiti
3. Kitakami-stad
4. Southeast urban area
5. Northwest city
6. city ​​center
7. Center East
8. Town Square
9. west parking
10. Southwestern city

Tampa is another major real estate investment market in Central Florida.It is growing steadily, prices are still low and there is a good chance that real estate will appreciate strongly in the coming years. The greater Tampa Bay area has a population of over 4 million and includes the metropolitan areas of Tampa and Sarasota. Not only is it an attractive metropolitan area, but it is also one of the most visited tourist destinations. It is one of the most popular real estate markets for rental properties in the country.

There is a great demand for starter homes for single-family homes. Over the past decade, annual real estate valuation has been a whopping 5.44%, putting Tampa in the top 10% in the country for real estate valuation. The entire Tampa metro area has less than 2 months of available inventory -- nearly 21.4% less than last year. This is one of the main factors behind rising house prices.

For most investors, buying or selling real estate is one of the most important decisions they will ever make. Selecting a real estate professional/advisor remains an important part of the process. They have in-depth knowledge of key factors affecting your specific market segment, such as changing market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.

NORADA PROPERTY INVESTMENTS Extensive experience investing in turnkey real estate and cash flow assets in the South Florida real estate market. We strive to set the standard for our industry and inspire others by raising the bar for providing exceptional real estate investment opportunities in many other growth markets in the United States.

We can help you succeed by minimizing risk and maximizing your profitabilityInvestment properties in Miami.Consult an investment advisor who can help you build a customized Miami real estate investment portfolio. Depending on availability, we can help you search"Cash flow rental properties"Located in some of the best neighborhoodsMiami.

Not limited to Miami or Florida but you can also invest in it Hottest real estate markets for rental propertiesIn the U.S.All you have to do is fill in theformAnd schedule a consultation when it suits you. We're ready to help you take the guesswork out of real estate investing. Done by researching and buildingMiami Turnkey Real Estate Investments, we help you succeed by minimizing risk and maximizing profitability.

Do not make real estate or financial decisions based on this article. This article contains third-party content in references. Norada Real Estate Investments does not represent, warrant or guarantee that the information is accurate, reliable or up-to-date, even if believed to be reliable. Check all information against the references below. Norada Real Estate Investments does not forecast conditions in the US real estate market. This article educates potential investors in Miami real estate. Buying an investment property requires research, planning and budgeting. Transactions can fail. Always research and consult a real estate investment advisor.

reference

Market data, reports and forecasts
https://www.miamirealtors.com/
https://www.zillow.com/miami-fl/home-values
https://www.miamirealtors.com/category/news-releases/
https://www.redfin.com/city/11458/FL/Miami/housing-market
https://www.neighborhoodscout.com/fl/miami/real-estate
https://www.realtor.com/realestateandhomes-search/Miami_FL/overview
https://gordcollins.com/real-estate/miami-real-estate-forecast/

Consequences of COVID-19
https://www.wlrn.org/news/2018-01-31/miami-has-more-renters-than-homeowners-study-says
https://www.miamiherald.com/news/business/real-estate-news/article233105012.html
https://www.wsj.com/articles/in-miami-there-are-too-many-condos-and-not-enough-foreign-buyers-11561658937

investment reason
https://www.collegesimply.com/colleges/florida/miami/
http://www.landlordstation.com/blog/top-landlord-friendly-states/
https://www.miamiherald.com/news/business/real-estate-news/article183538886.html
https://www.miamidade.gov/business/library/reports/2013-income-poverty.pdf
https://www.miaminewtimes.com/news/65-percent-of-miamians-live-in-rentals-most-of-any-major-american-city-6562379
https://www.forbes.com/sites/ingowinzer/2018/03/13/as-appreciation-stalls-differences-in-florida-markets-matter-more-than-ever/#11b7521f6584
https://www.nbcmiami.com/news/local/Three-Florida-Cities-Ranked-Among-Worst-in-US-For-Renters-494267151.html

foreign buyers
https://www.forbes.com/sites/kenrapoza/2017/08/31/look-whos-buying-up-miami-real-estate-now/#629e4d201232
https://www.usnews.com/news/best-states/articles/2017-07-13/venezuelas-loss-is-miamis-gai