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Is Miami The Best Market For Real Estate Investment In 2019?

How is The Miami Housing Market 2019?

If you are looking at investing in the Miami real estate market as a potential investment opportunity, you must read till the end. 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. According to a report published by Zillow in Dec 2017, Miami was the country’s fourth most valuable housing market. Trailing only Los Angeles (total value of $2.7 trillion), New York (2.6 trillion), and Washington (996.7 trillion), the total value of Miami’s housing market is an estimated 864.2 billion, which represents a solid 4.7 percent increase year over year.

With that kind of increase every year, just think of what would its valuation be when head into 2020? There are a number of other reasons to consider investing in the Miami real estate. Is Miami going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Miami housing market trends and find out the prospects of investing in Miami real estate in 2019.

Miami Real Estate Market

Miami Real Estate Market Predictions 2019 & 2020

The median home value in Miami is $335,200 on Zillow. Miami home values have gone up 2.0% over the past year and Zillow’s Miami real estate market prediction is that the prices will fall -0.6% in 2020. The median list price per square foot in Miami is $417, which is higher than the Miami-Fort Lauderdale-West Palm Beach Metro average of $221. The median price of homes currently listed in Miami is $475,000 while the median price of homes that sold is $317,200. The median rent price in Miami is $2,400, which is higher than the Miami-Fort Lauderdale-West Palm Beach Metro median of $2,100.

Here is the Miami real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of -0.6% till May 2020.

Miami Real Estate Market Forecast

Graph Credits: Zillow.com

According to LittleBigHomes.com, the Miami real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Miami real estate market trend prediction is 86%. Accordingly, they estimate that the probability for rising home prices in Miami, FL is 86% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.

Miami Housing Market Forecast 2019 – 2021

The Miami housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Miami housing market trend prediction is 77%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Miami, FL is 77% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Miami, Florida Real Estate Forecast.

Miami Real Estate Market Trends

Miami Beach real estate market trends indicate an increase of $17,500 (5%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period fell to $453, down from $465. Trulia has 6,866 resale and new homes for sale in Miami, FL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Miami Real Estate Market Trends

Graph Credits: Trulia.com

The median sales price for homes in Miami for Mar 20 to Jun 19 was $315,000 based on 2,616 home sales. Average price per square foot for Miami was $231, an increase of 5% compared to the same period last year. The median rent per month for apartments in Miami for May 24 to Jun 24 was $2,300.

Data by Redfin shows that the Miami housing market is somewhat competitive. Homes in Miami receive 1 offers on average and sell in around 63 days. The average sale price of a home in Miami was $322,000 last month, up 6.7% since last year. The average sale price per square foot in Miami is $218, up 6.3% since last year. Homes typically receive 1 offer. Homes for sale in the Miami housing market sell for about 4% below list price and go pending in around 63 days. Hot homes for sale in Miami, FL can sell for around list price and go pending in around 22 days.

Miami Housing Market Statistics

Median Sales Price $315,000 (On Trulia)
Price Per Square Ft $231
Median Rent Per Month $2,300
Median Household Income $43,421
Home Owners 61%
Single Residents 28%
Median Age 39
College Educated 32%
Transportation 93% people commute by car; public transport available

There are 25,564 homes for sale in Miami, ranging from $389 to $55M on Realtor.com. 1,044 of which were newly listed within the last week. Additionally, there are 14,247 Miami rental properties, with a range of $625 to $250K per month. In May 2019 the housing market in Miami, FL was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.

Miami Housing Market Trends

Sale-to-List Price Ratio: 95.93% | Realtor.com

In May 2019, the median list price of homes in Miami, FL was $400K, flat year-over-year. The median listing price per square foot was $291. The median sale price was $330,000. Homes in Miami, FL sold for 4.07% below asking price on average in May 2019. On average, homes in Miami, FL sell after 103 days on the market. The trend for median days on market in Miami, FL is flat since last month, and flat since last year.

Miami Housing Market Trend

Graph Credits: Realtor.com

The median list price in Miami, FL is $449,500 on Movoto.com. The median list price in Miami was less than 1% change from May to June. Miami’s home resale inventories is 8,705, which decreased 2 percent since May 2019. The median list price per square foot in Miami is $334. May 2019 was $331. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.

Miami Real Estate Market Trend

Graph Credits: Movoto.com

Miami, FL Single Family And Multi-Family Homes

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Miami, FL is $319,268, which indicates that home prices in Miami are well above the national average for all cities and towns.  Large apartment complexes or high rise apartments are the single most common housing type in Miami, accounting for 55.76% of the city’s housing units.

Other types of housing that are prevalent in Miami include single family detached homes ( 24.79%), row houses and other attached homes ( 10.04%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 8.94%).

This particular housing mix is relatively uncommon and characteristic of cities that are compact and walkable, and which often have a lively downtown. Miami is dominated by renter-occupied one, two, or no bedrooms apartments. 70.47% of Miami’s dwellings are rentals.

Currently, there are 867 single family homes for sale in Miami, FL on Zillow. Additionally, there are 299 single family homes for rent in Miami, FL. Under potential listings, there are about 24 Foreclosed and 264 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Miami, FL Foreclosures And Bank Owned Homes 2019

According to Zillow, the percent of delinquent mortgages in Miami is 1.2%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.

The percent of Miami homeowners underwater on their mortgage is 10.0%, which is higher than Miami-Fort Lauderdale-West Palm Beach Metro at 7.2%.

Foreclosures in Miami 5,427
Homes for Sale 3,675 (RealtyTrac)
Recently Sold 14,296
Median List Price $389,000 (2% ⇑ vs Apr 2018)

There are currently 5,427 properties in Miami, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 3,675. In May 2019, the number of properties that received a foreclosure filing in Miami, FL was 9% higher than the previous month and 3% higher than the same time last year.

Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Miami, FL was $0. The median sales price of a foreclosure home in Miami, FL was $0, or 0% higher than non-distressed home sales.

Miami Home Prices And Real Estate Appreciation 2019

Miami real estate appreciated 57.70% over the last ten years, which is an average annual home appreciation rate of 4.66%, putting Miami in the top 10% nationally for real estate appreciation. Miami real estate appreciation rates are so strong in that despite a nationwide downturn in the housing market, Miami real estate has continued to appreciate in value faster than most communities.

In the latest twelve months, Miami real estate appreciation rates continue to be some of the highest in the nation, at 6.86%, which is higher than real estate appreciation rates in 74.07% of the cities and towns in the nation. Miami real estate appreciation rates in the latest quarter were at 1.44%, which equates to an annual appreciation rate of 5.89%.

The above statistics on real estate appreciation in Miami, FL were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Florida, their data show that Miami’s latest annual appreciation rate is lower than 50% of the other cities and towns in Florida.

In Miami-Dade the housing affordability crisis is getting worse. According to the Miami Association of Realtors’ June 2018 report, median single-family home prices increased from $335,000 to $355,000 year-over-year; it was the 78th consecutive month of growth. Existing condo median prices rose 2.1 percent, from $235,000 to $240,000.  For renters, Miami’s greater downtown area is the place to be.

Brickell, Downtown and Midtown are some of the top three hottest areas in Miami-Dade right now for renters. For buyers, the top three hottest areas are Coral Gables, Miami Beach and Coconut Grove.

Budget-conscious home buyers should consider Homestead, Miami Shores and Kendall. Investors will want to pay attention to the Design District. Miami Beach remains popular, but watch out for inflated prices. And traffic has become one of the key factors when deciding where to live.

For the fourth year in a row, Miami Beach was once again named the most overvalued neighborhood, with a median price per square foot price of $520, according to Zillow.

Brickell clocked in second at $497 per square foot, while the luxury enclaves of Sunny Isles Beach ($554) and Key Biscayne ($753) tied for third. Homestead, where the median square foot price is $140, was deemed the most undervalued neighborhood.

Miami Shores ($338) came in second, because its price is lower other areas with comparable housing stock and quality of schools, such as Pinecrest and Coral Gables.

North Miami Beach ($237), Little Havana ($254) and Kendall ($226) tied for third. For more details you can read this report published in the Miami Herald.

Best Places To Buy Real Estate In Miami, FL

If you are looking to buy real estate in Miami, you should know the best places to invest in. There are 860 schools in Miami, FL. There are 242 elementary schools, 160 middle schools, 104 high schools and 354 private & charter schools. There are 122 neighborhoods in Miami.

Some of the best neighborhoods to buy real estate in Miami, Florida are Brickell, Kendall and Aventura. Village of Key Biscayne has a median listing price of $1.4M, making it the most expensive neighborhood. Fountainebleau is the most affordable neighborhood, with a median listing price of $215K.

Here are the 10 best neighborhoods in Miami to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

1

 Buena Vista

2

 N Miami Ave / NW 36th St

3

 S Miami Ave / SW 1st St

4

 City Center

5

 SE 2nd Ave / SE 1st St

6

 E Flagler St / NE 2nd Ave

7

 N Miami Ave / NE 14th St

8

 Miami Dade College / Biscayne Blvd

9

 NW 7th Ave / NW 17th St

10

 Biscayne Blvd / NE 25th St

Should You Invest In Miami Real Estate In 2019?

Is it worth buying a house in Miami, FL? Investing in real estate is touted as a great way to become wealthy.  Many real estate investors have asked themselves if buying a property in Miami, FL is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

Investing in miami real estate

We have already discussed the Miami, FL housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Miami, but we have collected ten evidence based positive things for those who are keen to invest in the Miami real estate in 2019.

Investing in Miami real estate will fetch you good returns in the long term as the home prices in Miami have been trending up (slightly) year-over-year. If you are a home buyer or real estate investor, Miami has a track record of being one of the best long term real estate investments in the nation. Based on the last twelve months, short-term real estate investors based in Miami have found good returns on their investment.

Let’s take a look at the number of positive things going on in the Miami real estate market which can help investors who are keen to buy an investment property in this city.

1. The 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 expat community in Miami.

2. The Beach

Many tourists come for 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.

3. 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.

4. The Limited Supply of New Homes

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 retirement enclave, so there’s less competition for limited housing stock.

5. Jobs, Jobs, Jobs

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% today; it is currently in line with the national average but often below it. Only Orlando has a better job market.

6. Miami is a Tourist Market

The Miami real estate market does present an opportunity to 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.

7. The Massive Population of Renters

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.

8. 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 actually $50,000.

9. The Massive Student Market

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 has 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.

10. It Is Landlord Friendly

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 is 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.

Miami Real Estate Investment

Maybe you have done a bit of real estate investing in Miami, FL but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Miami real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Miami real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Miami, Florida. 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.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Miami, FL is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

Miami real estate investment

The aim of this article was to educate investors who are keen to invest in Miami real estate in 2019. However, we always recommend to do your own research and take help of a local real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

Another hot market for investors in 2019 is going to be the Denver real estate market. There are many reasons why the Denver real estate market 2019 is going strong today and certain to remain strong for years to come. You cannot afford to miss out on this growing, appreciating real estate market.

Since housing inventory is scarce, prices are going up much faster than wages, and the younger population is more comfortable renting than owning, the Denver housing market is seeing a rapid rise in its rental market. Sheer demand for housing stock is making it profitable to break up large homes into multiple apartments.

If Forbes could recommend this as a Denver real estate market investment strategy in 2016, it can be seriously considered today. They said that any single family home in the Denver housing market could be considered a good rental property due to the rapid rise in home prices.

Similarly, the Portland real estate market is another hot market to choose for real estate investing. It is booming because the economy is doing well on its own and the area is head and shoulders above California’s deteriorating situation.

The Portland real estate market has experienced double-digit annual price growth in recent years. Home values rose 11.4% in 2016 alone, according to a report from the real estate data company Clear Capital. The home prices in the Portland, Oregon housing market have slowed considerably over the last few months. And that’s a good thing, from a sustainability standpoint.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.


*Remember, caveat emptor still applies when buying a property anywhere. 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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Rental market
https://www.miaminewtimes.com/news/65-percent-of-miamians-live-in-rentals-most-of-any-major-american-city-6562379

ROI
https://www.miamiherald.com/news/business/real-estate-news/article183538886.html
https://www.miamidade.gov/business/library/reports/2013-income-poverty.pdf

Landlord friendly
http://www.landlordstation.com/blog/top-landlord-friendly-states/

Limited supply due to retirees
https://www.forbes.com/sites/ingowinzer/2018/03/13/as-appreciation-stalls-differences-in-florida-markets-matter-more-than-ever/#11b7521f6584

Demographics
http://worldpopulationreview.com/us-cities/miami-population/
https://en.wikipedia.org/wiki/Miami
https://en.wikipedia.org/wiki/Miami_metropolitan_area

Jobs
https://www.bls.gov/regions/southeast/summary/blssummary_miami.pdf
https://en.wikipedia.org/wiki/Miami

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

The tourist market
https://en.wikipedia.org/wiki/Miami

Student market
https://www.collegesimply.com/colleges/florida/miami/

ROI
https://www.nbcmiami.com/news/local/Three-Florida-Cities-Ranked-Among-Worst-in-US-For-Renters-494267151.html

Housing Market Data, Trends & Statistics
https://www.zillow.com/miami-fl/home-values
https://www.littlebighomes.com/real-estate-miami.html
https://www.trulia.com/real_estate/Miami-Florida
https://www.movoto.com/miami-fl/market-trends
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://www.realtytrac.com/statsandtrends/fl/miami-dade-county/miami


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