With a remarkable 188% increase in home prices in the last decade, the Miami housing market is one of the fastest-growing in the US. The main drivers are high demand, minimal inventory, and increased migration to the area.
We explore the current trends in Miami’s buoyant real estate market.
House price growth in Miami
With an impressive 11 years of consecutive house price growth and home prices up 11.8% compared to last year, the Miami housing market is booming. House prices are set to climb even further by the end of the year, with experts forecasting a growth rate of between 10-20% in 2024. Miami remains a seller’s market, but since December 2022 total listings have risen by 8.9%, creating greater option for buyers.
Both single-family homes and condo-apartment prices have increased in the year to December 2023. The median value of single-family homes has risen by 14.9%, while median condo prices have grown by 9.5%. The price of condos has stayed even or increased in the last 145 months out of 151.
Cash buyers are not intimidated by rising prices. The net inflow of those inbound to Miami from New York between October and December was 5,827 people. Those who move from higher-priced areas, like New York, can buy more with their profits from real estate sales.
Since the pandemic, Florida has seen a huge increase in population. Miami has an average of 250 people moving there every day. The diverse culture, vibrant lifestyle, and unique historic monuments are all part of the desire to live in ‘The Magic City”.
Demand continues to outstrip supply—mainly due to the lack of inventory. Miami’s total inventory has fallen by 43.6% from its historical average. In the past, the monthly average for inventory sat at 20,302, while the current monthly inventory is now at 11,445.
Miami’s existing condo sales have decreased by 7.2% in a year, from 1,035 in December 2022 to 960 in December 2023. This is largely down to the lack of available housing at key price points, causing an intense and competitive market. While overall inventory increased by 15.41% for condos, prices also soared, and high mortgage rates made it harder for homebuyers.
For single-family homes, sales increased by 1.3% from 744 in December 2022 to 754 in December 2023. Meanwhile, inventory fell by 7.12%. The month’s supply of inventory for single-family homes stands at 4.3 months, indicating a seller’s market.
Purchasing real estate in Miami is a solid investment vehicle and almost certainly delivers rewards.
There is no denying the fact that much of Miami’s global appeal lies in its exuberant nightlife and picturesque beaches. However, one of the largest reasons behind the recent boom in the real estate market is its newfound status as a leading tech and finance hub. The influx of global companies investing in the Miami area, such as Microsoft, has created attractive new employment opportunities. Thousands of working professionals are relocating to Miami to work within the US’s second-most-important financial centre.
Add to this the strategic central position of Miami—the “Gateway to Americas”—and the city becomes a hotspot for Latin American buyers.
All of this combined is why Miami is one of the top spots for inbound migration in the U.S., and why housing demand and prices have surged in recent years. As home prices continue on an upward spiral, buying a property in Miami represents a golden opportunity to secure a huge appreciation in capital gain or a steady rental income.