Miami-Dade County’s real estate market continues to skyrocket, as the Miami Association of Realtors registered the county’s third-highest month ever in terms of sales.
South Florida has seen an influx of new residents from both domestic and international origins, as well as businesses moving headquarters seeking more favorable tax structures. The surge in people inhabiting the city has led to higher demand for real estate, driving prices higher while keeping the market red-hot.
Foreign real estate investors brought upwards of $12 billion to the Florida economy in the last year, totaling 22,500 existing homes purchased at a medium cost of $347,300, a real estate study reflected. The bulk of these purchases came from within the Miami Metropolitan Area, accounting for over 50 percent of properties purchased.
Miami-Dade County home sales rose five percent year-over-year in March 2022, from 3,751 sales up to 3,939.
“Demand is driving the Miami real estate market and the lack of housing supply continues to fuel property appreciation and record sales,” Miami Association of Realtors Chairman of the Board Fernando Arencibia Jr. said. “Until we see new listings outpace active listings consistently month over month, our market will continue its current trajectory even in the face of increasing interest rates. Homebuyers with positive cash flow, strong jobs, and high equity are relocating to live in South Florida. The shift to working-from-home, Miami’s fintech expansion, and Miami’s stature as the No. 1 U.S. destination for global homebuyers continue fueling demand.”
It’s not all sunshine in South Florida, though.
The median monthly asking rent in the U.S. reached a record high in March, with the Sunshine State also seeing increases in several metropolitan areas, like Miami and Ft. Lauderdale, according to a new report from Redfin.
Miami marked the highest rental cost increases in America, rising at a rate of 38.6 percent on average. Nationally, single-family rent prices rose a shade under 13 percent from a year earlier, though Florida is outpacing the nation.
Miami, the most expensive real estate market in Florida, holds a medium rent price of $2,340 for a one-bedroom apartment, while Ft. Lauderdale has a one-bedroom median listing at $1,940.
“Many potential first-time homebuyers are quickly being priced out of the market by record-high home prices and fast-increasing mortgage rates,” said Redfin Chief Economist Daryl Fairweather. “They are then faced with two options: rent or move somewhere with a lower cost of living. Those who choose to rent may save money in expensive housing markets in the near term, but long term, they may have to deal with continued rent increases, year after year. Those who move and buy somewhere more affordable now will be paying considerably more than if they bought last year, but will be able to build equity in the long run and ensure relatively stable monthly housing costs going forward.”
Lawmakers have recognized the skyrocketing price and increasing prevalence of native Floridians being priced out of neighborhoods, though the proposed legislation has fallen on deaf ears.
“No legislation passed this session to address the ridiculous cost of rent, condo safety, or property insurance rates,” said Rep. Anna V. Eskamani. “Easier to distract than solve problems.”