Is real estate in Miami becoming unaffordable? | Real Estate
Miami has become the most unaffordable housing market in the country, according to DGIM Law, a South Florida-based contemporary business law firm.
Ultra-wealthy people looking for a tax break, or to escape the winter weather, have been investing in Florida real estate for years. The target city now appears to be Miami, with Key Biscayne and the Ft. Lauderdale area behind it.
Miami is now more unaffordable than either New York or San Francisco.
An aerial view of Miami at twilight.
Bloomberg News reports that “people who make $650,000 moving to Miami from New York can save nearly $2,000,000 a year thanks to lower taxes and a cheaper cost of living.”
The S&P CareLogic Case-Shiller Index offers fresh evidence that Miami’s housing market is poised to remain the strongest of any US city.
In 2022 Miami posted the country’s fastest year-over-year-home-price growth at 15.9%, surpassing the nation’s 1.4% homes sold this year.
These astronomical sales figures are propelled by the migration of out-of-state buyers and renters, many of whom have moved from the Northeast. And according to Forbes, most experts do not expect the housing market to crash in 2023.
The issue results from the fact homeowners have built up considerable home equity, high interest rates, and inflated home values. All make purchasing a home challenging.
A ground-level view buildings in front of Miami River at night.
Miami’s median home sale price rose 7.5% from April 2022 to April 2023. The median price is $575,000, almost $200,000 more than the nationwide median, according to Redfin/Bankrate.com.
Across the nation, new home sales are down, as the country faces inflation and high interest rates, but not in South Florida. CBS reports Miami prices are up 10%. The Miami housing market keeps showing positive growth, with the average home selling for well above the previous year’s market value.
Whether you are in the market to sell or buy real estate in Miami or Key Biscayne, there is no sign prices will stay the same in the immediate future.
