According to a recently published report by Point2 Homes, the median homeownership tenure in Miami reached seven years in 2022, which is a year longer than a decade ago. In Fort Lauderdale, this term extended to six years. The situation in South Florida is different from the average performance across the US, where people stay in one place for an average of 10 years, according to the National Association of Realtors.
Real estate experts call the South Florida market a transient one because it is currently dominated by people looking for new opportunities and ready to move. Ken H. Johnson, Professor at the Florida Atlantic University, notes that usually the shorter the homeownership tenure is, the more mobile people are and the more economic opportunities exist.
Before the start of the pandemic, foreign buyers greatly affected the sales volume and the occupancy rate in rental homes. The situation changed because of the coronavirus and, later, a strong dollar. New players entered South Florida—buyers from other US states, particularly the Northeast.
After 2021, top managers and remote workers flocked to southern parts of Florida, followed by corporations that opened offices in business districts of Miami, Fort Lauderdale, and West Palm Beach. After the travel restrictions were lifted, overseas investors returned to the market, which boosted the competition and house prices.
Migration exacerbated the housing crisis in the south of the state. House price reached historic highs here: in October 2022, the median value of a residence in Miami-Dade County climbed to $575,000. Specifically, single-family houses cost $555,000 in February 2023—$19,000 more than a year ago. Prices rose even more in Broward County, where the median house price hit the mark of $560,000 compared to $519,000 last February.
Condominium prices increased too. They rose to $390,000 in Miami-Dade County (by $10,000 compared to 2022). In Broward County, the prices reached $272,000, which is considerably more than $240,000 a year ago.
South Florida metropolitan areas are some of the few places in the USA where house prices grow consistently.