Investing in real estate in Florida has been a hot trend among affluent residents of the US and the rest of the world for more than a decade. During that time, the average price of a single-family house in Florida has risen from $145,000 in 2012 to $402,500 at the end of 2022.
The most sought-after location for investors and renters in the state is Miami. Its skyscrapers, quiet one-story suburbs, endless sandy beaches and coastal restaurants, cruise ports and concert venues, office buildings, and nearby nature preserves attract tourists and those who want to move to the city permanently.
For those who want to ensure that buying an apartment in Florida near Miami is still a good investment decision, we have prepared a list of 5 arguments proving it is a wise move.
Content:
- The attractive market for foreigners
- Transportation Accessibility
- Limited building plots
- Paradise for retirees
- Developed job market
The attractive market for foreigners
According to several studies, almost a third of the metropolitan area's residents were born elsewhere, and of that third, half were born outside of the United States. The Miami real estate market is very lucrative to foreigners. Most foreign buyers come from Brazil, Mexico, Argentina, Turkey, China, and London. Such owners perceive much of the acquired residential property as a sound investment. It also often serves as a second home or rental property. Miami's population growth is about 2 percent a year. The city has the fifth fastest population growth rate in the country.
Transportation Accessibility
As seen in the previous section, Miami is one of the most cosmopolitan and open cities to foreigners in the United States. The town and its immediate surroundings are home to two of the world's largest cruise and commercial ports and one of the busiest airports. It is also one of the closest US metropolitan areas to Europe, where you can fly in 8–9 hours from European capitals for relatively little money. Not surprisingly, you can hear people speaking many of the world's languages on Miami's beaches in winter, from Portuguese or German to Japanese.
Miami is connected to other U.S. cities by abundant domestic air routes and bus services. Numerous roads and bridges lead from Miami into the peninsula's interior and the city's islands.
Easy accessibility from Europe improves the metropolis's image as a tourist destination. Not surprisingly, the rental business in Miami is virtually "doomed" to flourish. Public and even low-cost carriers fly here from Europe and Latin America. During spring break, so many young tourists from other states and countries arrive in Miami that, in a recent survey, locals said they would like to limit this influx.
Limited building plots
As one of the country's fastest-growing real estate markets, Miami attracts many people who want to move here permanently by its job market and high quality of life. However, developers need to build faster to meet the increased demand. The real estate market in Miami is a seller's market. Those who buy an apartment in off-plan projects in Florida in or near the metropolitan area can be sure their property will have risen significantly in price when construction work is complete.
Miami has seen significant growth in high-rise construction in neighbourhoods, such as Downtown, Edgewater, and Brickell, making the metropolitan cityscape the third highest in the United States. In some areas, high-rise buildings are still not allowed to preserve the ocean and coastal views, but that has yet to stop Miami from becoming the sixth densest city in the country. The ocean bounds Miami on one side and the Everglades National Park on the other, so the city can't sprawl endlessly. And that means home prices inevitably are going to rise higher here.
Paradise for retirees
Investors should consider a peculiarity of South Florida, namely the presence of many retirees who want to move to this warm state because of the beautiful weather and low taxes. However, those seniors who already live in Florida are going nowhere.
This lowers the Miami market's turnover, limiting the supply for other buyers. Even those retirees who leave Miami seasonally do not usually rent out their homes to return next winter.
Developed job market
Many people move to Miami for work. The city has the most robust economy in South Florida and has the 12th largest economy in the United States. The metropolis is among the top 50 wealthiest cities in the world. All the towns above Miami in the ranking below have much worse climate conditions or much more expensive real estate and cost of living.
U.S. cities ranking by GDP, 2022
- New York City
- Los Angeles
- Chicago
- San Francisco
- Washington, D.C.
- Dallas
- Houston
- Boston
- Seattle
- Philadelphia
- Atlanta
- Miami
