Miami Housing Market: Prices, Trends, Forecast 2024

South Florida & Miami's housing market is strong. Despite challenges such as inventory shortages and rising mortgage rates impacting the market, Miami's housing market continues to attract buyers, especially those from high-density, high-taxed regions. The presence of cash buyers and consistent price appreciation position Miami as a resilient and attractive real estate destination.

How is the Miami Housing Market Doing Currently?

Home Sales in Miami

Miami-Dade County single-family home sales rose 6% year-over-year in May 2024, from 1,040 to 1,102 homes. This increase highlights South Florida's ability to buck national trends due to its robust migration, job market, and significant percentage of cash buyers. Miami has seen year-over-year gains in six of the last seven months for single-family home sales.

• Total home sales in Miami declined 0.6% year-over-year in May 2024, from 2,412 to 2,397 – MIAMI Association of Realtors (MIAMI).
• Existing condos saw a decrease of 5.6% year-over-year in May 2024, from 1,372 to 1,295, primarily due to inventory shortages at key price points.
• Homes priced $1M and up surged 9.5% year-over-year in May 2024, from 409 to 448.
• Mid-market condos (priced between $400,000 to $600,000) increased 7.5% year-over-year in May 2024, from 334 to 359.

Miami Home Prices

Miami-Dade County single-family home median prices increased 6% year-over-year in May 2024, rising from $620,000 to $650,000. Miami has experienced 150 consecutive months of price appreciation, making it the longest running-streak on record. Single-family home prices have increased by 242.1% from May 2012 to May 2024.

Existing condo median prices also saw an increase of 2.4% year-over-year, from $415,000 to $425,000. Condo prices have stayed even or increased in 150 of the last 156 months, with an overall rise of 183.3% from May 2012 to May 2024.

Despite rising prices, Miami remains a value compared to other global cities. According to the 2024 Knight Frank Wealth Report, $1M can purchase at least 60 square meters of prime property in Miami, which is significantly higher than in cities like Sydney, Shanghai, Paris, Los Angeles, New York, and others.

Miami Housing Supply

Miami new listings have increased for the ninth consecutive month and are nearing pre-pandemic levels, providing more options for home buyers. In May 2024, Miami's total new listings increased by 14.12% year-over-year, from 3,280 to 3,743.

• Overall inventory is down 33.9% from the historical average for Miami, with the current inventory at 13,405 compared to the historical average of 20,302.
• Total active listings increased by 43.7% year-over-year in May 2024, from 9,331 to 13,405.
• Inventory of single-family homes increased by 30.8% year-over-year, from 3,018 to 3,949.
• Condominium inventory increased by 49.8% year-over-year, from 6,313 to 9,456.

Miami Housing Market Trends

Several key trends are shaping the Miami housing market in 2024:

• Miami's home equity gains have nearly doubled the national figure over the last 15 years, with homeowners earning $533,955 compared to the U.S. average of $287,111.
• The price appreciation continues despite high mortgage rates, driven by the rising share of million-dollar home sales and competition for lower-priced homes.
• Migration into Southeast Florida remains strong, with 153,347 driver licenses exchanged for Florida licenses in 2023, an 8.3% increase from 2022. New York, New Jersey, and California are the top feeder states.
• The Miami real estate market has a significant economic impact, contributing $294 million to the local economy in May 2024.
• Distressed sales remain low, representing only 0.9% of all closed residential sales in May 2024.

The Miami real estate market continues to outperform national and state trends, with strong sales, price appreciation, and economic impact.

Tables and Data Explanation

Indicator	Value
Single-family home sales (May 2024)	1,102
Median price of single-family homes	$650,000
New listings (May 2024)	3,743
Active listings (May 2024)	13,405
Cash sales	38.5%

The table above shows key indicators of the Miami housing market. Single-family home sales in May 2024 were 1,102, with a median price of $650,000. There were 3,743 new listings, and the total active listings stood at 13,405. Additionally, cash sales accounted for 38.5% of all transactions, reflecting the high demand and significant number of cash buyers in the market.

Overall, the Miami housing market is demonstrating resilience and growth, driven by migration, economic factors, and strong demand across various price segments.

Miami Housing Market Predictions 2024

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. So, what are the Miami real estate market predictions for 2024 and 2025?

Current Market Overview

The Miami-Fort Lauderdale-West Palm Beach housing market has experienced significant changes over the past year. The average home value in this region is currently $490,171, reflecting an increase of 6.4% from the previous year. Homes typically go to pending status in around 39 days. This section will delve into the various metrics that define the current state of the Miami housing market.

Key Market Metrics

Here are some essential statistics that highlight the current trends in the Miami housing market:

• 1-year Market Forecast (June 30, 2024): +2.2%
• Median sale to list ratio (May 31, 2024): 0.969
• Median sale price (May 31, 2024): $477,000
• Median list price (June 30, 2024): $520,000
• Percent of sales over list price (May 31, 2024): 10.6%
• Percent of sales under list price (May 31, 2024): 75.4%

Market Forecast

The 1-year market forecast for the Miami housing market predicts a 2.2% increase. This moderate growth indicates a stable and resilient market, even amid economic uncertainties. Buyers and investors can expect a steady appreciation in property values over the next year.

Sale to List Ratio

The median sale to list ratio as of May 31, 2024, stands at 0.969. This metric signifies that homes in Miami are selling for approximately 96.9% of their listing prices. This close ratio suggests that the market is fairly balanced, with neither buyers nor sellers having a significant upper hand.

Median Prices

Examining the median prices provides further insights into the market dynamics:

• Median sale price: $477,000 (as of May 31, 2024)
• Median list price: $520,000 (as of June 30, 2024)

The difference between the median sale price and the median list price indicates that while sellers are optimistic about their pricing, buyers are negotiating prices down to more realistic levels. This difference can be attributed to various factors, including market conditions, property conditions, and buyer preferences.

Sales Over and Under List Price

The percentage of sales over and under list price provides additional context on market competitiveness:

• Percent of sales over list price: 10.6% (as of May 31, 2024)
• Percent of sales under list price: 75.4% (as of May 31, 2024)

The 10.6% of sales over list price indicates that a small fraction of the market is highly competitive, with buyers willing to pay more than the asking price. On the other hand, the 75.4% of sales under list price suggests that the majority of transactions involve some level of negotiation, leading to prices below the initial listing.

Future Predictions

Considering the current data and trends, the Miami housing market is expected to maintain its upward trajectory, albeit at a slower pace. Here are some future predictions:

• Steady growth: The market is likely to see continued but moderate growth in home values.
• Balanced market: The sale to list ratio and the negotiation trends suggest a balanced market where both buyers and sellers can find favorable conditions.
• Investment opportunities: With a stable growth forecast, Miami remains an attractive destination for real estate investors looking for steady returns.

Conclusion

The Miami housing market presents a picture of stability and modest growth. With an average home value of $490,171 and a 2.2% market forecast growth, it remains a viable market for both buyers and investors. The metrics such as the sale to list ratio, median prices, and the percentages of sales over and under list price provide a comprehensive overview, indicating a balanced market. As always, potential buyers and investors should stay informed and consider all factors before making decisions.

Should You Invest in the Miami Real Estate Market?

Population Growth and Trends

When considering investment in the Miami real estate market, population growth and trends play a pivotal role. Miami's population has been steadily growing over the years, driven by both domestic and international migration. Here's why this matters for investors:

• Population Growth: Miami's population has been on an upward trajectory, attracting residents from all over the United States and abroad. This influx of people creates a consistent demand for housing, making it an attractive market for real estate investors.
• International Appeal: Miami's international appeal is a significant driver of population growth. The city's vibrant culture, pleasant climate, and international business connections make it a magnet for individuals from around the world. For investors, this diverse population presents opportunities in various real estate sectors, including residential and commercial properties.

Economy and Jobs

Examining the economy and job market is critical for real estate investment decisions:

• Economic Strength: Miami boasts a diverse and robust economy. It's a hub for international trade, tourism, finance, and technology. A strong and diversified economy helps ensure a stable demand for real estate, both for commercial and residential purposes.
• Job Opportunities: The availability of job opportunities in Miami is a key factor for real estate investors. A thriving job market attracts professionals, and this, in turn, leads to higher demand for rental properties, as many newcomers prefer renting initially.

Strong International Market

Miami's real estate market benefits from a strong international presence:

• Global Investment: Miami is a favored destination for international investors. Buyers from South America, Europe, and other regions consider Miami a safe and attractive place to invest in real estate. As an investor, you can tap into this global demand for properties.
• Foreign Investment: Foreign investors often seek properties in Miami for various purposes, including vacation homes, second residences, and income-generating rental properties. This international interest adds stability and growth potential to the local market.

Livability and Other Factors

Livability and lifestyle factors contribute to the city's attractiveness:

• Lifestyle Appeal: Miami's lifestyle, with its beautiful beaches, cultural attractions, and vibrant nightlife, makes it an appealing place to live. This lifestyle appeal increases demand for both residential properties and rental units.
• Weather and Climate: Miami's tropical climate is a major draw for residents and tourists alike. The city's pleasant weather encourages year-round tourism and can contribute to the demand for rental properties.

Big Rental Property Market Size and Its Growth for Investors

Miami offers a thriving rental market:

• Rental Demand: The city's diverse population, strong job market, and international appeal create a substantial demand for rental properties. This is advantageous for real estate investors, as it means a steady stream of potential tenants.
• Rental Income Potential: Miami's rental market has significant income potential. Depending on the neighborhood and property type, investors can generate attractive rental income. High rental rates can translate into favorable cash flow for property owners.

The Zumper Miami Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Florida one bedroom median rent was $1,682 last month. Miami was the most expensive city with one-bedrooms priced at $2,650. Lauderhill ranked as the least expensive city with rent at $1,550.

Here are the top cities in the metro area where rents are increasing. You can think of investing in these places because they have strong growth and demand for rental properties. You can also use their historical annual growth in rents to help predict future increases or decreases.

The Fastest Growing Cities in Miami Metro Area For Rents (Y/Y%)

• Hollywood had the fastest growing rent, up 7.4% since this time last year.
• Hialeah saw rent climb 5.6%, making it second.
• Lauderhill ranked as third with rent increasing 3.3%.

The Fastest Growing Cities in Miami Metro Area For Rents (M/M%)

• Dania Beach & Weston had the largest monthly rental growth rates, both up 5.9%.
• Miramar rent increased 4.4% last month, making it second.
• Delray Beach was third with rent climbing 4.3%.

Other Factors Related to Real Estate Investing

When contemplating investment in the Miami real estate market, it's essential to consider these additional factors:

• Market Trends: Staying informed about market trends, such as price appreciation, rental rates, and property supply, is crucial. These trends can influence your investment strategy.
• Local Regulations: Understanding local real estate regulations, property taxes, and zoning laws is vital for investors to navigate the market effectively.
• Property Management: Whether you plan to manage properties yourself or hire a management company, efficient property management is key to successful real estate investments.
• Diversification: Consider diversifying your real estate portfolio in Miami by exploring different property types, from single-family homes to commercial properties.

Highest Appreciating Miami Neighborhoods

When considering real estate investments, it's crucial to evaluate the historical performance of neighborhoods. The following Miami neighborhoods have demonstrated significant appreciation since 2000, making them noteworthy areas for potential investors:

Downtown North

• **Appreciation**: Downtown North has experienced substantial appreciation in real estate values over the past two decades. This makes it an attractive prospect for investors seeking long-term growth.
• **Location**: Situated in the heart of Miami's downtown area, Downtown North offers proximity to key amenities, cultural attractions, and business centers.
• **Potential**: With its central location and upward trend in property values, Downtown North presents opportunities for investors interested in urban real estate.

Little Haiti South

• **Appreciation**: Little Haiti South has seen remarkable appreciation since 2000. This neighborhood's transformation has been driven by its cultural vibrancy and proximity to downtown Miami.
• **Cultural Hub**: Little Haiti South has become a cultural hub, attracting artists, creatives, and entrepreneurs. This cultural renaissance has boosted its real estate market.
• **Investment Appeal**: Investors seeking neighborhoods with both historical significance and growth potential should consider Little Haiti South.

Overtown North

• **Appreciation**: Overtown North's appreciation over the years highlights its potential for real estate investment. This historic neighborhood has witnessed resurgence.
• **Revitalization**: Overtown North has been a focus of revitalization efforts, leading to improved property values and a growing sense of community.
• **Investor Opportunities**: For those interested in contributing to the revitalization of a historic neighborhood while realizing financial gains, Overtown North is a compelling choice.

Overtown West

• **Appreciation**: Overtown West has undergone a transformation, with appreciating real estate values. This neighborhood showcases the potential for investors in areas undergoing positive change.
• **Community Development**: Overtown West's development initiatives have contributed to its growth. Investors can participate in community development projects while benefiting from rising property values.
• **Future Prospects**: Overtown West is a neighborhood to watch for those interested in urban redevelopment and investment in emerging areas.

Downtown Southeast

• **Appreciation**: Downtown Southeast's real estate market has shown consistent appreciation over the years. Its location and urban development make it an appealing choice for investors.
• **Urban Development**: Downtown Southeast has witnessed significant urban development, including new residential and commercial projects. This development has boosted property values.
• **Investment Potential**: With its ongoing urban transformation, Downtown Southeast presents promising investment opportunities for those looking to capitalize on urban growth.

Downtown Northwest

• **Appreciation**: Downtown Northwest has experienced notable appreciation in real estate values since 2000. Its proximity to downtown Miami and growth in infrastructure contribute to its appeal.
• **Proximity to Downtown**: The neighborhood's location near downtown Miami is a key factor driving appreciation. Residents enjoy easy access to the city's business and entertainment districts.
• **Investor Advantages**: Downtown Northwest offers advantages for investors seeking a strategic location and potential for long-term appreciation.

Downtown

• **Appreciation**: The central Downtown area of Miami has consistently appreciated in real estate values. Its status as the city's core business and cultural district contributes to this growth.
• **Economic Hub**: Downtown Miami is an economic hub, home to numerous businesses, cultural institutions, and entertainment venues. This dynamic environment supports property value growth.
• **Investment Opportunities**: Investors looking for real estate in the heart of the city should consider Downtown Miami, given its appreciation potential and urban vibrancy.

Downtown East

• **Appreciation**: Downtown East has seen substantial appreciation, benefiting from its location within Miami's thriving downtown district.
• **Urban Growth**: Downtown East has experienced growth in both residential and commercial developments. This urban expansion has contributed to property value appreciation.
• **Investment Appeal**: Investors interested in neighborhoods within the urban core of Miami should explore Downtown East's potential for investment and growth.

Town Square

• **Appreciation**: Town Square's appreciation since 2000 makes it a noteworthy area for real estate investors seeking long-term gains.
• **Location**: The neighborhood's location offers accessibility to key amenities and is situated in a dynamic urban environment that supports property value growth.
• **Investment Prospects**: Town Square provides investment prospects in a vibrant urban setting, making it a compelling choice for real estate investors.

Park West

• **Appreciation**: Park West has demonstrated significant appreciation over the years, positioning it as an attractive area for investors.
• **Urban Development**: Park West has witnessed urban development, including entertainment venues and commercial establishments. This development has enhanced property values.
• **Investor Opportunities**: Park West offers investment opportunities in a growing urban district with the potential for long-term appreciation.