Miami Real Estate Market Update 2021 • Benzinga

Miami has always been an exciting travel destination. Its beautiful beaches, endless resorts and high-end hotels, as well as world-class shopping and nightlife have drawn tourists here for years. Now people have decided to make this their permanent home. Many are moving by selling to other parts of the country and living in their vacation homes, retreating or just uprooting and leaving for sunny days and job opportunities.

Current market conditions in Miami

• The average home sales price in Miami is at an all-time high.
• There has been an influx of households and jobs in the Miami area.
• The housing supply has fallen sharply since last year.

Buying a home in Miami

Miami house prices

Miami average home value: $ 415,000

National average: $ 371,000

The Miami area has seen a sharp surge in home values. Prices have increased nearly $ 200,000 in the past 5 years. The market has seen an impressive 25.8% year-over-year growth and is still on an upward trend. Compared to the national average, which is up 22.4%, Miami homes are of greater value than most nationally-rated homes and have seen a larger increase in less time. It looks like Miami is the place to be.

Housing offer in Miami

Housing supply in Miami has dropped 6.81 months since that time, and now has an average supply of 3.1 months. This is a significant decrease in the number of homes available while there is still a decent amount in the market right now. The decreasing supply of housing indicates that people are coming here and buying. For sellers, this is great news – their homes are selling fast and for more than they ever imagined. It is more difficult for buyers to buy. You pay more for every home and compete with other hopeful homebuyers. It’s a great time for investors to get into this hot market. Home prices continue to rise, as do rental prices.

The national housing supply is only 1.1 months – significantly less than in Miami. National supply, however, is only down 1.87 months year-over-year, while Miami saw a much larger drop in the same period.

Buying a rental property in Miami

The rental market in places like Miami and the surrounding cities is always volatile as travelers come and go. However, the number of apartments has fallen sharply recently and the number of households has increased. This could potentially make it more difficult to rent in the future as more people move here and live here all year round.

Miami rental rates

Miami Average Rental Price: $ 2,010

National average: $ 1,704

While property prices in Miami have continued to rise, rental rates are 7.2% higher than last year. The national average has only increased by 3%. Over the past 5 years, both Miami rentals and national rentals have increased by about $ 300. While both continue to trend higher, Miami has seen a recent surge. For investors, this means that your investment property is rented above the national average and the prospects for future rent increases are promising.

Jobs in Miami

Rental vacancy Miami: 6.3%

National average: 6.8%

Rental vacancies in the Miami area are currently similar to much of the United States. Miami saw a sharp drop in vacancies in July 2020 as people started traveling again. In a holiday destination like this, it is natural for vacancies to fall at certain times of the year, usually during the spring break in March and April. As there are many ups and downs in terms of rental vacancies in this area, real estate investors looking to buy a rental apartment here need to keep an eye on their preferred vacation months and plan accordingly. Given the upward trend in rental prices, buying here sooner rather than later would be in the best interests of investors.

Foreclosures in Miami

Foreclosure rate in Miami: 0.5%

National average: 0.3%

As with most of the country, foreclosures in Miami are at an all-time low. Both the Miami and national averages have seen foreclosures declined by 0.1% year over year, bringing their foreclosure rates close to zero. For the Miami area real estate market, this is great news as it helps increase home value. For investors looking for a good deal on property, there simply aren’t enough foreclosures.

Districts of Miami

Bayshore is Miami’s richest neighborhood. With average home prices a little under $ 2 million, it’s more expensive than 97.2% of the statewide neighborhoods. This coastal suburb consists of medium-sized single-family homes as well as apartment buildings and high-rise buildings. Since this is a community located directly on the water, there is a mixture of owner-occupied and rented apartments and vacancies are common. A wonderful place to live or visit, this neighborhood is also diverse in terms of cultures, languages ​​and professions.

Bay Heights is an urban neighborhood in Miami made up of small to medium-sized apartments and single-family homes. Most of these homes were built in 2000 or later, and the community holds a record for most studios, one- and two-bedroom apartments, and single-family homes. Singles, young professionals, and students inhabit most of these smaller apartments. The average house price in Bay Heights is $ 624,150 and the median rent is $ 2,976. The vacancy rate is high here at 31.8%, but 18.6% of the apartments here are only inhabited seasonally.

Liberty Square is a much cheaper area of ​​Miami. The average home price is $ 219,032 and the rent is about $ 1,229 per month. It is a densely populated area that consists of studios through to 4-room apartment buildings and high-rise buildings, with properties predominantly occupied by tenants. With its walkability, low crime rates, and cheaper rental rates, this is a popular place for college students. Occupations range from manufacturing and worker jobs to fast food restaurants. There are also some residents in specialist or managerial careers. The majority of workers take the bus to work, but bicycles are also a great way of getting around.

Economic conditions in Miami

The past year has hit the economy hard. High unemployment rates, minimal job opportunities, and less travel have hurt vacation cities like Miami, but the outlook is improving. Thousands of jobs have opened and travel has peaked.

Unemployment in Miami

Unemployment rate in Miami: 6.4%

National average: 6.8%

Miami’s unemployment rates have come pretty close to the national averages over the past 5 years, with some increases recently. There was of course an increase during last year’s pandemic, but it has decreased by 7% since then. Miami’s unemployment rate rose slightly 2.2% year over year, while it fell 8.7% healthier nationwide. Before the pandemic, Miami’s unemployment rate was just 2.4% and the city has every hope of getting back there one day. Miami has seen a year-over-year increase of 255,800 jobs so the city is definitely on the way back to healthier levels for its economy.

Miami’s top employer

The University of Miami is Miami’s top employer. It employs 12,818 people and offers more than 180 bachelor and study programs. With a beautiful campus and variety of programs, students come here looking for a great education as well as smaller class sizes with a student-to-teacher ratio of 12 to 1. It takes many employees to successfully run a university of this size.

The next largest employer in Miami is Baptist Health South Florida with 11,000 employees. Baptist Health provides world-class healthcare in cancer, cardiovascular care, orthopedics, and neurology. Education is also important. The health system offers certificate programs, residencies, and scholarships to continue serving the Miami area.

Another major employer is American Airlines with more than 11,000 employees. Several Miami airports offer international and domestic flights. As a travel hotspot, Miami International Airport is America’s third largest airport.

Other popular employers include those in the hospitality industry. Carnival Cruise Lines and Royal Caribbean International, plus a host of resorts and hotels, offer thousands of jobs in the Miami area.

The bottom line in the Miami real estate market

The real estate market in Miami is doing well after last year’s pandemic. Apartment and rental prices are rising, and there is great demand. The supply has decreased drastically and more than 44,000 new households have been added in the last year. With an increase in travel and work opportunities, Miami is proving to be a great place to live and invest.