Miami is a city that has long been appreciated for its fantastic beaches, vibrant culture, and
truly incredible climate. Every year, individuals from the United States and elsewhere around
the world continue to flock to Miami both to visit and to live. Over the past few decades,
millions have flocked to the Miami Metropolitan Area, causing the area’s population to reach exceed 6 million.
With the US population moving away from the much colder Northeast and Midwest in pursuit
of better weather in the South, the population of Miami and the surrounding areas can be
expected to continue to grow. The lack of a state income tax in Florida has also helped inspire people to make the journey to South Florida.
The area’s physical boundaries—namely the Atlantic Ocean and the nearby Everglades—limit
its potential for metropolitan sprawl. As a result, builders have been steadily increasing Miami’s
population density while also looking for ways to further extend the metro up the coast. In
addition to other market forces, the naturally limited space in Miami has helped keep housing
prices well above those found elsewhere in Florida and elsewhere across the country.
One of the perhaps most surprising causes of Miami’s recent growth has been the incoming tech boom. Many budding tech companies that have been either priced or taxed out of the traditional tech hubs—particularly New York and San Francisco—are now looking to Miami (as well as Texas) as a viable alternative. Relatively relaxed COVID regulations have also helped encourage a movement into Miami and the surrounding areas.
In addition to Miami-Dade, Palm Beach County has also seen a recent explosion in the demand for housing. As Bloomberg recently stated, “While New York’s suburbs, the Hamptons and Aspen all saw sales prices rise last year, the activity in Florida’s Palm Beach County, from Boca Raton to Jupiter, has been at a breakneck pace.”
Increased demand has been exhibited at all price levels, including homes selling above 3 million USD. Sales volume has been increasing for each of the past seven months and more than 1 in 6 homes are selling above their original listing price.
A Closer Look at the Miami Housing Market
Housing prices in Miami have risen for a remarkable 109 straight months, dating all the way
back to 2013. Miami-Dade County, Palm Beach County, and nearby Broward County have all
been able to enjoy the region’s impressive growth. In Broward County, according to Forbes,
“single family sales dollar volume jumped 35 percent to 654.8 million. Condo sales volume
increased 36 percent to 348.1 million.” These two figures combined represent just over one
billion dollars in real estate transactions.
One of the bright spots for Miami area homeowners is that there are many different forces
actively causing properties in Miami to appreciate in value. The combination of low taxes (and
non-existent state income taxes) along with increased tech growth help create a stable jobs
market. The area’s near-perfect climate will also continue to attract crowds of people that are
tired of the long winters up north. High demand for real estate and a consistent appeal to
incoming immigrants (particularly Cuba and the Greater Caribbean) all help keep houses and
other residential properties consistently in demand.
Currently, Miami is without a doubt a seller’s market. Homes are often on the market for less
than a week and, as suggested, a significant portion of homes being put on the market are
selling well above their original asking price. Anyone looking to sell a home in Miami (and most
of South Florida) will likely easily be able to do so, especially because the housing stock is
currently very limited. At the same time, many Miami Area homeowners are holding onto their
property investments, hoping their values will increase even further.
Predicting what properties might be worth in ten years, or even five years can often be very
difficult. But there are still many reasons for people to believe that Miami is positioned to
continue thriving. Any trend that negatively affects housing values in Miami will likely affect
housing values throughout the entire country. For decades, South Florida has been a driving
force of our nation’s growth and this will likely continue into the near future.