According to Paul George, D.Sc. in History, the growing housing value and rental rates, as well as the high inflation are nothing new to Miami. South Florida has survived spikes and drops before. The most impressive boom reached a peak in 1925.
The city’s history lends Dr. George a view of the future: “We have seen booms and slumps in the Miami real estate market before. Now we are obviously experiencing another boom but I believe the decline will be as sharp as it was after the 1926 collapse.
The historian says that Miami has always been a fast-growing city. Its current population is 470,000 people, with 2.72 million living in Miami-Dade County, although 120 years ago it was almost uninhabited.
Dr. George added that tourism and real estate have been and will be the major drivers of the region’s economy. Miami, however, stands a good chance of becoming a large technology hub. “I believe technology will become the third important element of our economy that we didn’t have before,” he says, adding that another important factor to consider is the environmental impact.
According to Dr. George, it took the city and the country 10 or 20 years to “really control the environment and how it is developing. But we did that too late not only in Miami but also throughout the USA.” The problem is the rising water level in Miami Beach and on the Miami side of the Biscayne Bay that the authorities must solve as soon as possible.
Hana Squires at the HistoryMiami Museum who helps highlight the history and culture of South Florida says: “I believe gentrification is what we are now observing. We see active development of communities, especially along the Miami River, which is changing our infrastructure and the urban development environment.”
The city is developing and attracting tourists and immigrants. The number of people who wish to buy or rent local real estate is still growing, so investors in Miami property will benefit and won’t lose their income despite the growing prices and interest rates.