South Florida’s housing market is strong in 2021. Home prices continue to climb and inventory remains low. It is a seller’s market with many sellers getting top dollar. After getting hammered by the pandemic, the Miami and South Florida housing markets bounced back in July. The demand for South Florida real estate has been increasing since then.
The Miami housing market is booming due to pent-up demand and low mortgage rates which continue to fuel real estate transactions in 2021. Miami-Dade County total home sales posted a double-digit increase for the sixth consecutive month in February 2021, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system. Strong demand coupled with limited supply continues to drive price appreciation in Miami-Dade. February 2021 was the 111th consecutive month of home price appreciation in this region.
Months supply of inventory for single-family homes decreased 49.1% to 2.8 months, which indicates a seller’s market. Inventory for existing condominiums decreased 19% to 10.2 months, which indicates a buyer’s market. If inventory levels are around 6.5 months, there is a balanced housing market. This is the historical statewide benchmark for the monthly supply inventory available for sale.
According to Realtor.com, the “City of Miami” is a balanced real estate market, which means there is a healthy balance of buyers and sellers in the market. It also means the Miami housing market is closer to a steady-state position than on the decline. In February 2021, the median list price of homes in Miami, FL was $398K, trending up 4.9% year-over-year.
The median sale price was $355K. The sale-to-List Price Ratio was 97.33%, which means that homes in Miami sold 2.67% below the asking price on average. Ideally, a buyer would prefer a sale to ask price ratio that’s closer to 90% while a seller would always prefer scenarios that can yield a ratio of 100% or higher.
Redfin gives the Miami area a score of 19 out of 100, considering it not very competitive. Multiple offers are rare. The average property takes around two months (67 days) to sell for four percent below its listing price. “Hot” homes sell for their listing price in about a month (27 days).
Miami Metro Area Housing Market Trends 2021
The Miami metropolitan area is the seventh-largest metropolitan area in the United States and the 72nd largest metropolitan area in the world. The metropolitan area includes the City of Miami (the financial and cultural core of the metropolis), Miami-Dade, Broward, and Palm Beach counties which are the first, second, and third most populous counties in Florida.
Greater Miami includes a larger area defined by the United States Census Bureau as the Miami-Port St. Lucie-Fort Lauderdale Combined statistical area. This larger area includes Martin, Saint Lucie, and Indian River counties to the north of Palm Beach County.
The typical value of homes in Miami-Fort Lauderdale-West Palm Beach Metro is $326,457. This value is seasonally adjusted and only includes the middle price tier of homes. Miami-Fort Lauderdale-West Palm Beach Metro home values have gone up 7.8% over the past year and Zillow predicts they will rise 9.4% in the next twelve months. We will mainly focus on the housing markets of Miami-Dade, Broward, and Palm Beach counties.
IMPACT OF PANDEMIC ON THE HOUSING MARKET
In May 2020, Miami-Fort Lauderdale-West Palm Beach MSA (Broward, Miami-Dade, and Palm Beach counties) experienced a 48.0% y-o-y drop in sales of single-family homes. The median sales prices increased by 2.1% to $372,500. Year-to-Date sales dropped by -2.9%. According to the national real estate brokerage Redfin, the Miami metro area had about an 8-month supply of homes for sale as of June 2020.
That was quite higher than most other metros in the U.S. In a buyer’s real estate market, homes tend to stay on the market longer before going under contract. Sellers become more anxious, often lowering their sale prices to attract buyers. The entire South Florida housing market — and Miami in particular — saw a decline in sales due to the COVID-19 pandemic.
In June, a report released by the Miami Associaltion of Realtors said that they expect an increase in sales in the coming months due to falling mortgage interest rates. They’re also seeing an influx of refugees from high-tax states. For example, thousands of high-income earners are relocating from New York to Florida. The realtor report stated that there was a 6.1 percent annual growth in overall sales.
The single-family market saw a roughly eight percent decline in sales year-over-year, but that includes months where it was very difficult to show off a home. Condo sales fell roughly four percent. However, the overall number of homes sold was only down one percent. And the average home price continued to rise albeit at a slower rate. This means single-family homes in the Miami real estate market have risen for more than ninety months consecutively, virus, or no virus.
This is where the massive decline in sales in the luxury market has pulled down the stats for the South Florida real estate market as a whole. Fortunately, there hasn’t been a major change in the rate of distressed home sellers. Around 6.5 percent of close sales were distressed sales. That’s an increase of a third of a percentage point. Yet total Miami distressed sales and short sales fell. This may be a side benefit of having up to a fifth of housing stock empty. People may be holding onto dream retirement properties, or in the case of the luxury market, dumping their other residence and moving into their Miami condo.
Miami-Dade County Housing Market Trends
Miami-Dade, with 2,716,940 people in 2019, is the seventh most populous county in the United States. In Miami-Dade, the housing affordability crisis is getting worse. It is a seller’s market according to the latest stats released by the MIAMI Association of Realtors. The median percent of the original list price received for single-family homes was 97.2% in February 2021, up 1.9% from 95.4% last year.
The median percent of original list price received for existing condominiums was 94.3%, up 0.3% from 94% last year. Lack of inventory in certain price points is impacting sales, particularly for single-family homes. Increased housing starts and more sellers listing properties in 2021 should help alleviate the lack of supply.
Miami-Dade County single-family home prices increased 21.6% year-over-year in February 2021, increasing from $370,000 to $450,000. Miami single-family home prices have risen for 111 consecutive months, a streak of more than 9 years. Existing condo prices increased 17.6% year-over-year, from $255,000 to $300,000. Condo prices have increased or stayed even in 113 of the last 117 months.
Source: MIAMI Association of Realtors
Broward County Housing Market Trends
Broward County is a seller’s real estate market. Lack of inventory in certain price points is impacting sales, particularly for single-family homes. Months supply of inventory for single-family homes decreased 52.8% to 1.7 months in February. It has been declining since July 2019 reflecting strong demand in Broward County’s housing market. Total home sales posted a double-digit increase for the sixth consecutive month in February 2021 as pent-up demand and record-low mortgage rates continue fueling transactions
The median percent of the original list price received for single-family homes was 97.8% in February 2021, up 1.8% from 96.1% last year. The median percent of original list price received for existing condominiums was 95.3%, up 1.1% from 94.3% last year, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward County single-family home prices increased 12.5% year-over-year in February 2021, increasing from $385,000 to $433,000. Existing condo prices increased 10.8% year-over-year, from $180,500 to $200,000.
Source: MIAMI Association of Realtors
Palm-Beach County Housing Market Trends
Palm Beach County lies directly north of Broward County and Miami-Dade County. It is ranked 18th on Bloomberg’s latest list of the richest places in the country, based on U.S. Census data for average household income. According to a 2019 census report, the county had a population of 1,496,770, making it the third-most populous county in the state of Florida and the 25th-most populous county in the United States.
Palm Beach County is also a seller’s real estate market. Pent-up demand and low mortgage rates are fueling its housing market. The median percent of the original list price received for single-family homes was 96.6% in February 2021, up 1.7% from 95% last year. The median percent of original list price received for existing condominiums was 95.3%, up 1.7% from 93.7% last year, according to the latest stats released by the MIAMI Association of Realtors.
Strong demand coupled with limited supply continues to drive price appreciation in Palm Beach. Single-family home prices increased 24% year-over-year in February 2021, increasing from $363,000 to $450,000. Existing condo prices increased 24.9% year-over-year, from $189,000 to $236,000.
Source: MIAMI Association of Realtors
Miami Real Estate Market Predictions 2021-2022
What are the Miami real estate market predictions for 2021 & 2022? Let us look at the price trends recorded by Zillow over the past few years. Since 2012, the median home price in Miami has appreciated by nearly 92% (Zillow Home Value Index). The typical value of homes in Miami is $396,659. This value is seasonally adjusted and only includes the middle price tier of homes. Miami home values have gone up 6.5% over the past year.
According to NeighborhoodScout’s data, Miami real estate appreciated 102.59% over the last ten years, which is an average annual home appreciation rate of 7.32%, putting Miami in the top 10% nationally for real estate appreciation.
In the last twelve months, Miami appreciation rates continue to be some of the highest in America, at 5.03%, which is higher than appreciation rates in 72.05% of the cities and towns in the nation. Miami appreciation rates in the latest quarter were at 1.12%, which equates to an annual appreciation rate of 4.56%. All these figures corroborate Zillow’s positive forecast for Miami’s housing market.
If mortgage rates remain low, it will continue to bolster the home buying activity and pull the home prices up. For sellers, now is the opportune time to put their Miami homes up for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase.
The typical home value of homes in Florida is $273,094 (middle price tier of homes). Home values have gone up 9.3% over the past year and will continue to rise in the next twelve months.
Miami-Fort Lauderdale-West Palm Beach Metro home values have gone up 7.8% over the past year and Zillow predicts they will rise 9.4% in the next twelve months.
Miami-Dade County home values have gone up 7.2% over the past year and will continue to rise in the next twelve months due to the supply-demand imbalance.
Palm Beach County home values have gone up 7.8% over the past year and will continue to rise in the next twelve months due to the supply-demand imbalance.
Broward County home values have gone up 8.7% over the past year and will continue to rise in the next twelve months due to the supply-demand imbalance.
The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until February 2022.
Graph Credits: Zillow.com
Here is a short and crisp Miami housing market forecast by LittleBigHomes.com for the 3 years ending with the 3rd Quarter of 2021. They estimate that the probability of rising home prices in Miami is 77% during this period. If this price forecast is correct, the Miami home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
The historical change in home prices for Miami-Miami Beach-Kendall, FL is shown below for the three-time periods. The Miami Home Price Index has increased for the last 26 consecutive quarters (data up to 3rd Quarter, 2018). The highest annual change in the value of houses in the Miami Real Estate Market was 28% in the twelve months ended with the 4th Quarter of 2005. The worst annual change in home values in the Miami Market was -29% in the twelve months ended with the 4th Quarter of 2008.
The highest growth in home values in the Miami Real Estate Market over three years was 83% in the three years ended with the 3rd Quarter of 2006. The worst performance over three years in the Miami Market was -44% in the three years ended with the 2nd Quarter of 2010. For the upcoming updates, you can visit LittleBigHomes.com.
Time Period
Greater Miami Real Estate Appreciation
Last 5 Years
59%
Last 10 Years
31%
Last 20 Years
194%
The question now is what happens moving forward. These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? Economist Ken Johnson found that homes in the Tri-County area are overpriced by 20 percent. This means that properties are over-valued by the highest level in eight years.
However, this doesn’t mean that the coronavirus crisis will cause the South Florida housing market to crash. First, the Miami housing market was 60 percent overpriced during the 2008-2009 housing market collapse. Twenty percent is easily corrected without wiping out a lot of people financially.
Second, the area offers stronger average incomes than it did twelve years ago. More people can afford their homes even if their incomes fall ten to thirty percent or can continue to make payments if one adult in the household is unemployed. Third, low-interest rates will bolster the real estate market. Many people can refinance their home loans assuming they aren’t taking loan forbearance.
Furthermore, the greater Miami metro area is in a stronger position than during the last financial crisis. First, there is no subprime mortgage crisis this time. Second, the Miami real estate market had record low delinquencies before the coronavirus pandemic exploded. This will prevent a glut of houses for sale that will depress the housing market.
Another contributing factor is the massive rental market in the Miami area. More than two-thirds of people in the area rent instead of own. For comparison, roughly two-thirds of Americans own their home. This creates massive pent-up demand for local real estate. We can expect the South Florida housing market to be bolstered by would-be homeowners who have jobs to take advantage of declining real estate prices.
With an average monthly rent of 2400 dollars a month in Miami and 2000 in the Miami suburbs, those who can land a house for that monthly payment and afford it will take it. This is why homes in the 300,000 to 400,000 are a seller’s market. There hasn’t been much inventory growth in this price range, which includes the median price point for homes in the Miami real estate market. Builders were too busy building condos, apartment buildings, and luxury homes, instead.
Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Miami in 2021 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance.
Miami Real Estate Investment: Is Miami a Good Place To Invest?
Successfully investing in real estate — whether you are in Miami or anywhere else in the world — is all about correctly timing the market. Knowing when to enter into the real estate market can often be a bit of a challenge. Is Miami a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Miami is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2021.
Miami is a fairly walkable city in Miami-Dade County. Miami hits most people’s radar as a tourist destination, though it periodically hits the news when it looks like it may be hit by a hurricane. However, Miami is a large, thriving city with a strong housing market. Miami is home to just under half a million people.
However, the Miami housing market is far larger than that – it includes much of southeast Florida and more than five million people. That makes the Miami real estate market the seventh-largest in the U.S., and it is the second-largest housing market in the southeastern U.S. However, that isn’t reason enough to consider investing in the Miami real estate market.
Before the coronavirus pandemic went global, there was talk about Miami being overpriced. On the flip side, there was an over-supply of condos, since they were aimed at snowbirds and tourists. When all the tourists are gone, demand for hotels and tourist destinations collapsed. And many of the tourism-related jobs dried up with it, too. Economic uncertainty has had a chilling effect on the Miami housing market, too. The market has bounced back and is currently red-hot. The demand for South Florida real estate is evident in the median time to contact. Miami single-family homes are going under contract in 30 days, 53.8% faster than a year ago (65 days). Miami condos are going under contract 60 days, 29.4% faster than a year ago (85 days).
Top Reasons To Invest In The Miami Real Estate Market?
Ranked #12 in the US for real estate investing in 2019 (PwC).
High-quality investments at an affordable price.
High rental income.
Steady real estate appreciation.
Miami is in the top 10% nationally for real estate appreciation.
Over 70% of the population rents.
Low Property Taxes.
No income tax.
The low unemployment rate of 3.5%.
Great Airbnb Rental Opportunities: Massive Tourist Market.
Miami is a buyers’ market and investors need to capitalize on this advantage while it is still there.
Although, this article alone is not a comprehensive source to make a final investment decision for Miami we have collected ten evidence-based positive things for those who are keen to invest in the Miami real estate market. Investing in Miami real estate will fetch you good returns in the long term as the home prices in Miami have been trending up year-over-year. Let’s now discuss the state of the Miami real estate market, which can help investors who are keen to buy an investment property in this city.
Miami is a Strong International Market
In 2011, nearly a third of residents were foreign-born. However, about half of those become citizens, so we can say that Miami is simply considered attractive to immigrants. However, the Miami housing market is unusual in the number of foreigners buying homes here. Russians, Brazilians, Argentines, Turks, Chinese and British buyers are buying up properties here at a far higher rate than would be expected. Some see the property purchases as a safe investment, while others intend to use the beachside condos as vacation properties.
A few bought homes in Miami to flee to in case their home countries became untenable, which explains the large Venezuelan ex-pat community in Miami. Many tourists come to the beach, and many people want to live there, as well. Miami’s beaches are made all the more attractive by the year-round subtropical weather. This helps explain why Miami-Dade’s population is growing around 2% a year while south Florida’s population overall has been stagnant. It is considered the fifth fastest-growing region in the U.S.
In 2018, 54 Percent of Florida’s Foreign Buyers were in Miami Metro Region. In July 2019, Miami-Fort Lauderdale-W. Palm Beach was ranked #1 by Realtor.com among the top US Markets for International Traffic. It is #1 among the major U.S. Destinations of Foreign Buyers. Florida has been #1 for 10 Years for Top US Markets for International Traffic. The Miami real estate market does present an opportunity for those who want to cater to tourists.
The Port of Miami is known as the Cruise Capital of the World since it is the top cruise passenger port in the world. Landlords can rent to tourists who want to stay for a week in Miami before flying home or simply want to enjoy Miami’s beaches, cultural activities, and sports teams. According to the Wall Street Journal, a $350,000 property can be rented out for $2500 per month. That’s a fair ROI, and you could easily rent out a vacation condo when you aren’t using it yourself.
The Geographic Constraints
Many of the world’s fastest appreciating real estate markets are attracting people coming for work and quality of life, but they cannot expand the housing supply to meet demand. San Francisco is surrounded by water on three sides, and they make things worse by limiting the height of buildings, so they can’t build up the way NYC has. In Colorado and Utah, a mix of federal parklands and vertical mountains limit where developers can build houses.
We’ve already mentioned that Miami is on the water. Miami has experienced a spurt in high-rise construction in downtown, giving it the third-highest skyline in the U.S, but other areas limit it so that high rises don’t block the view of the water. However, that hasn’t prevented the Miami real estate market from becoming the sixth densest housing market in the U.S overall.
There’s an interesting factor to consider in the Florida housing market, and that’s the massive retiree population. Many older people move to Florida for the mild weather, and they’re rather immune to housing price fluctuations. Older people who already live here stay in their homes. This results in fewer turnovers in the Miami real estate market, limiting supply for would-be buyers.
That explains why Tampa and Coral remain over-priced markets though jobs aren’t as plentiful there. Retirees who do leave the state periodically tend to keep their Florida home as a second residence instead of selling it. The Gulf Coast is more of a vacation spot than a retirement enclave, so there’s less competition for limited housing stock.
Miami’s Economy Development and Job Growth
Many people move to Miami for work. Miami is the largest urban economy in Florida, and it has the 12th largest GDP in the U.S. The World Cities Study Group classified Miami as an alpha city based on the level of business activity, human capital, and cultural activity. The unemployment rate in Miami hovers around 4% (before COVID-19); it is currently in line with the national average but often below it. Only Orlando has a better job market.
Miami-Dade County is a global tourist destination. Since 2011, overnight visitors to Miami-Dade have increased by 20 percent, and hotel room nights sold have gone up 22 percent. In 2019, Greater Miami welcomed 24.3 million visitors, an increase of 4.6 percent over 2018. Travel and tourism fueled a record-breaking 146,700 jobs in 2019. While MIA, PortMiami, and tourism are driving forces in the local economy, Miami-Dade has a vibrant entrepreneurial spirit among small businesses.
The Kauffman Foundation regularly ranks Miami as the top U.S. city for startup activity. For those residents in the County who are homeowners, life has also improved dramatically in the past eight years. County’s government’s one promising project on the drawing board is the Redland Market Village, which will create a vibrant downtown destination in south Dade. This project will bring 2,600 jobs and $351 million to the community during construction. Once complete, it will generate an annual economic impact of $40 million, and more than 400 new jobs, in addition to the 800 currently there.
According to a new report from the University of Central Florida’s Institute for Economic Forecasting, Florida’s economy is expected to contract by 6% year-on-year in 2020 — but will bounce back with a growth of 7.6% in 2021. By comparison, the Conference Board, the nonprofit group of economists that calls U.S. recessions, predicts a 4.9 percent contraction for the American economy in 2020 and a 2% growth recovery in 2021.
Florida retail jobs are also predicted to snap back by 10% in 2021 after declining by 6.1% in 2020. For Miami-Dade, the recovery will be led by professional and business services employment, which is expected to average 3.7% growth in 2023, followed by education and health services at 2.9%. Manufacturing is forecast to decline by 2.8%.
Miami’s Massive Rental Market
Two-thirds of Miami residents rent, a rental rate rivaling that of New York City. This is partially due to the number of people working in seasonal and temporary jobs in the tourism business. It is partially due to the limited housing supply relative to demand. And it is partially due to the high cost of housing, even inland, relative to local wages. This is leading many investors in the Miami real estate market to buy single-family homes to be carved up into multiple units, each one rented out individually.
As the largest city in Florida, it would end up with multiple large universities for that reason alone. However, Miami’s international appeal and unique position have made it an education and research hub, resulting in the creation of institutions like Florida International University. There are almost forty colleges and universities within forty miles of Miami, hosting over 350,000 students. Ironically, Miami University isn’t among them – that’s in Ohio. The University of Miami, though, is located in Miami and enrolls more than 17,000 students.
Latest Miami Rental Market Trends:
Around 33% of households in Miami are renter-occupied. As of March 27, 2021, the average rent for a 1-bedroom apartment in Miami, FL is $1,600. This is an 11% decrease compared to the previous year.
The average rent for a studio apartment in Miami, FL is currently $1,350. This is a 13% decrease compared to the previous year.
The average rent for a 2-bedroom apartment in Miami, FL is currently $2,048. This is an 11% decrease compared to the previous year.
The average rent for a 3-bedroom apartment in Miami, FL is currently $2,800. This is a 7% increase compared to the previous year.
The average rent for a 4-bedroom apartment in Miami, FL is currently $4,200. This is a 40% increase compared to the previous year.
The Zumper Miami Metro Area Report analyzed active listings in February 2021 across 30 metro cities to show the most and least expensive cities and cities with the fastest-growing rents. The Florida one-bedroom median rent was $1,246 last month. Aventura & Fort Lauderdale were tied for the most expensive city with one-bedrooms both priced at $1,700. Homestead saw rent drop 2.0% to $1,000 and rank as the least expensive city.
The Fastest Growing Cities For Rents (Y/Y%)
Plantation had the fastest-growing rent, up 12.6% since this time last year.
Deerfield Beach saw rent climb 10.1%, making it the second-fastest-growing.
Lauderhill was third with rent jumping 9.1%.
The Fastest Growing Cities For Rents (M/M%)
Lauderhill had the largest monthly rental growth rate, up 5.3%.
Delray Beach’s rent jumped 4.9% last month, making it second.
Plantation was third with rent increasing 4.8%.
Source: Miami Metro Report: March 2021
These are some of the most affordable neighborhoods where the rent prices are below the Miami average rent:
Palmer Lake – Mia Station
Mays Gardens
Brandon woods
Cantisano
Coral Woods
Dixie Heights Gardens
The Strong ROI for Landlords
Investing in the Miami real estate market can give you strong returns. The high demand for properties in southeastern Florida relative to demand limits the ability of people to buy, creating a large pool of renters. Miami ranked second in the nation for the most cost-burdened renters in the country, paying more than half of their income in rent.
Rents aren’t as high as they are elsewhere in the country, but given the lower property values than markets like Silicon Valley or NYC real estate market, it is a good ROI. For example, the median home price is around $350,000, while the median rent is $1900 a month. A $1900 a month rent would be considered a burden for a household earning $70,000 a year, while median incomes in the area are $50,000.
Whether you’re renting to students, low-income workers, or snowbirds, potential investors in the Miami housing market will be glad to know this is a landlord-friendly market. Florida doesn’t have laws on rent control. Security deposits aren’t capped, and you can start eviction if the rent is three days late. Damage to the property requires a seven-day conditional quit notice, while repeated lease violations allow for a seven-day unconditional notice.
Where To Buy Miami Investment Properties?
In any real estate investment, investment, cash flow is gold. The Miami real estate market offers diverse opportunities to real estate investors, allowing you to choose which rental markets you want to cater to and profit from. Good cash flow from Miami investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding the best investment property in Miami in a growing neighborhood would be key to your success. As with any real estate purchase, act wisely. Evaluate the specifics of the Miami real estate market at the time you intend to purchase. When looking for the best real estate investments in Miami, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.
There are 47 neighborhoods in Miami. Popular neighborhoods in Miami include Brickell, Kendall, Aventura, Downtown Miami, Little Haiti, Mid Beach, Edgewater, Downtown, Coconut Grove, Brickell, Wynwood, Miami Springs, South Point, Miami Shores, Hialeah, El Portal, Santa Clara, and South Beach. According to Realtor.com, Southwest Coconut Grove has a median listing price of $1.5M, making it the most expensive neighborhood. Model City is the most affordable neighborhood, with a median listing price of $280K. The median rent is around $1,950.
Here are some of the best neighborhoods within the Miami Beach area where you can buy investment properties.
Brickell is one of the hottest affordable areas in Miami. It is located on the Miami South Channel, thus it is on the waterfront. Yet the average home here sells for around four hundred thousand dollars. This is a relative bargain compared to incredibly expensive neighborhoods like Coconut grove located a few miles to the south. Brickell is located south of downtown Miami, putting it in easy reach of that massive job market.
This is a densely built-up area, so you pay around 480 dollars per square foot. This is somewhat higher than the Miami average. On the other hand, the median rent is 2600 dollars a month, somewhat higher than the 2450 average for the Miami-Dade area. Brickell Key charges roughly 2600 dollars a month, too.
Liberty City is a few blocks from Biscayne Bay. Highway 195 forms its southern border, while Highway 95 is its eastern border. Being so close to major highways is part of the reason why the average home here costs a quarter-million dollars. The relatively cheap south Florida real estate explains why this is a warm housing market despite the chill caused by the coronavirus. Home prices here have appreciated almost ten percent year over year, and they’re expected to remain unchanged through 2021.
Overtown is another neighborhood close that’s not quite on the water’s edge. It is bisected by Highway 395 and I-95. This neighborhood is popular with medical professionals because it is dominated by the Miami-Dade College Medical campus and several hospitals. The average home here costs around a quarter-million dollars. Before the coronavirus crisis, property values had appreciated a healthy five percent year over year. Projected home values are unchanged for 2021. Residents are attracted to the affordable property, though property owners may appreciate the many people moving here due to the 1,650 dollar a month rent.
Here are the ten neighborhoods in Miami having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
N Miami Ave / NW 36th St
Miami Dade College / Biscayne Blvd
NW 2nd Ave / NW 24th St
E Flagler St / NE 2nd Ave
City Center
SE 2nd Ave / SE 1st St
N Miami Ave / NE 14th St
S Miami Ave / SW 1st St
Buena Vista
NW 7th Ave / NW 17th St
Tampa is another great real estate investment market in Central Florida. It growing steadily, prices are still low and properties have a good chance for a strong appreciation in the coming years. With a population of more than 4 million, the Greater Tampa Bay area includes the Tampa and Sarasota metro areas. It is not only an attractive metropolitan area but is also one of the most frequently visited tourist destinations. It is one of the hottest real estate markets for rental homes in the nation.
There’s a tremendous amount of pent-up demand for entry-level single-family homes. In the past ten years, the annual real estate appreciation rate has amounted to 5.44% which puts Tampa in the top 10% nationally for real estate appreciation. There is less than 2-month of the available inventory in the entire Tampa metro area – down almost 21.4% over last year. This is one of the key factors in rising home prices.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on 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 the profitability of your investment property in Miami.
Consult with one of the investment counselors who can help build you a custom portfolio of Miami investment properties. Depending upon the availability, we can help you to find “Cash-Flow Rental Properties” located in some of the best neighborhoods of Miami.
Not just limited to Miami or Florida but you can also invest in some of the hottest real estate markets for rental properties in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Miami turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
Please do not make any real estate or financial decisions based solely on the information found within this article. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. This article aimed to educate investors who are keen to invest in Miami real estate. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and take the help of a real estate investment counselor.
References:
Market Data, Reports & Forecasts
https://www.zillow.com/miami-fl/home-values
https://www.miamirealtors.com/news/south-florida-market-stats/july-2020/
https://www.littlebighomes.com/real-estate-miami.html
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
Impact of the 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
Reasons to Invest
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-gain
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