Key trends in Florida real estate market in 2022

Key trends in Florida real estate market in 2022

The real estate market in the south of Florida has recently found new momentum. Many investors and people who wish to move to this sunny state for permanent residence are interested in purchasing and renting properties of various categories.

Daniel Matz, Senior Managing Director at Newmark, identifies the following trends in this market:

  • Influx of many investors from other states and countries.
  • Increase in ground-up developments.
  • Increase in acquisition of value-add properties.
  • Multi-family homes as the most attractive and profitable asset.
  • Active development of the whole southern part of the state, particularly Miami, in districts like Wynwood, Downtown, Brickell, and Edgewater.

The rent is rising incredibly fast but no one can be sure that this trend will continue in the next few years. However, tenants currently pay about $3,000 per month for a 650 square feet, one-bedroom apartment in Miami (as of June 2022).

Developers are particularly active in the sector of luxury condominiums and receive a good return from leasing them. Locations on the coast look promising, in cities like Fort Lauderdale and Pompano Beach. Unlike Miami, prices are not too high there yet.

Numerous new tenants from other states and cities are coming to Florida. They are attracted by the lack of COVID restrictions and a peaceful lifestyle on sunlit beaches. Apartments, single-family homes, and condominiums are in particularly high demand among such tenants.

The trend of growing rental rates does not seem to be slowing down at all, which is profitable for investment property owners.

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