Since the start of the pandemic, the demand for properties in the southern part of Florida has skyrocketed. There are over 100 cities and settlements here, including Miami, West Palm Beach, Boynton Beach, Fort Lauderdale, Boca Raton, and North Miami. This is the seventh largest metropolitan area across the USA and the second largest, in the country’s southeast. The population of this 15,500 sq km area exceeds 6.7 million people.
Over the two pandemic years, the population of South Florida grew by 329,000 people, and the property rental market of Greater Miami earned the status of the most competitive in the USA. Fans of large spaces and a relaxed lifestyle on sunny beaches were moving here in flocks. Tax incentives attracted companies from other parts of the country, turning Miami into a startup hub.
The attractiveness of South Florida properties is based on several unique factors. The first is businessmen moving from urban areas with high taxes. This is the reason why the population of South Florida has been growing at a rate of 10.3% over the past decade, which is higher than the national average of 7.4%. Besides tax incentives, this area attracts entrepreneurs with the status of the 12th largest economy among all US states and a 46% GDP growth over the past ten years. The region’s job market is forecast to grow at 7.5% per year. The most actively developing industries are construction, transport, retail, hospitality industry, and financial services.
Over 1,400 multi-national corporations are registered in Florida, along with giants such as Microsoft, Goldman Sachs, Spotify, Sixt (a car rental), and Techtronic Industries (owner of Milwaukee Tool, Ryobi, Hoover, and other brands).
With the incredible attractiveness of the Sunshine State, its real estate will never lose value. Jonathan Campau, founder of Luxuri (a real estate rental agency), believes that the luxury property market will remain unchanged for the next 8 – 12 months at least, as wealthy people from New York and California, as well as other countries, will still compete for opulent oceanfront mansions. An influx of clients from South America, which has shrunk due to the coronavirus of late, can also be expected.
Regular buyers could be deterred by the higher interest rates but rich people pay with cash and do not rely on loans. This promises a bright future for Florida’s market of luxury real estate.