For Miami, the 2019 real estate projections look just amazing. According to various associations in the field, mainly the Miami Association of Realtors, the median home value in the area is well above $330,000. The median value increased by almost 5% over the last year. And according to experts in the field, the housing prices in the area will be on a 3% ascending trend in 2019. And so, the Miami real estate investors can lie down at night knowing that their investments are rewarding and profitable.
The Real Estate Market in Miami Generates Impressive Numbers
For the last ten years, the real estate market in the area has been growing continuously. The collective real estate appreciation rate over the past ten years in Miami is estimated at well above 20%. This makes Miami to be placed in the top 30% nationwide. The real estate market here grows so strong that, in spite of the nationwide depreciation rates witnessed in the field, the market here showed faster appreciation rates than anywhere else in the US. The appreciation rates are estimated at approximately 7.5% during the last 12 months and these staggering numbers are higher than in most of the US (almost 90% of the US).
While for realtors these numbers might be appealing and enjoyable, the housing affordability crisis in Miami is a concerning one. According to the Miami Association of Realtors, the median single-family home prices were estimated in June 2018 at $355,000, as compared with the same month of the previous year, when the price for the same type of house was estimated at $335,000. The prices for existing condos rose by more than 2%. In this contest, the renters seem to be the most advantaged by Miami’s downtown area. According to real estate analysts, this is the best place you can be.
The Hottest Areas in Miami for Renters and Buyers
According to expert’s projections, the Brickell, Downtown and Midtown Miami are at the top when it comes to the hottest real estate spots in the city when it comes to renters. For buyers, the best areas to look into housing options in Miami are the Coconut Grove, Miami Beach and Coral Gables. When it comes to those buyers highly concerned about their budgets, those should look into housing options in Miami Shores, Kendall and Homestead.
Investment-wise, those with an inclination towards real estate investments can start looking into the Design District. The prices in Miami Beach are inflated, although the area remains appealing. Assess all the variables when looking into investment options in the area. The traffic in the area has also become hellish and for potential renters and buyers, traffic and road safety are two of the main variables that count when looking into rentals. According to a Miami car accident lawyer here are some of the most frequent deadly incidents in the area, which might damage the profitability of a similar investment in this particular area.
For another year in a row, the Miami Beach was declared the most over evaluated a neighbourhood in Miami, with an absurd median price per square foot of $520. The statistics come from Zillow. The second most over evaluated neighbourhood is Brickell, the price per square foot in the area being estimated at $497. The luxury enclaves in Miami, and here we are referring to Sunny Isle Beach and Key Biscayne come in third at $554 and $753 respectively.
The most undervalued neighbourhood in Miami remains Homestead with a median price per square foot of approximately $140. The price is incredibly small given the fact that its location is more than advantageous and it enjoys being quite a safe neighbourhood overall, with good schools and shops. Next in our top come the Pinecrest, and Coral Gables.
The Fastest-Growing Neighbourhoods in Miami Since 2000
Investors that purchased real estate properties in Miami have found good fortune over the past ten years. With the impressive numbers above, there is no wonder that many of the US investors turn their attention more and more on this market. In the last quarter of 2018, the appreciation rates were at almost 2%, which encompasses a yearly appreciation rate above 7%. The ten most profitable neighbourhoods in Miami are listed above, for everybody interested in the area.
- North Miami Ave.
- Buena Vista
- Biscayne Blvd.
- South Miami Ave.
- NW 2nd Ave.
- E Flagler St.
- City Centre.
- SE 2nd Ave.
- NW 7th Ave.
The appreciation rates in Miami have been estimated well above average for the last ten years. The data coming from multiple sources shows cumulative appreciation rates over the past ten year of approximately 23%, which puts the Miami area in the top 30% most appreciated areas in the US. The short-term real estate investors have found a profitable market in Miami and the ascending trend is estimated to still grow in the near future.
Best Reasons to Invest in The Miami Real Estate Market in 2019
There are many reasons why real estate investors should turn their attention to the Miami area for future investments and some of those are listed below.
- Strong International Market. As of 2011, 1/3 of the Miami residents were foreign-born. In time, half of those foreign residents have become US citizens but the area is incredibly attractive to immigrants which will propel the Miami real estate market furthermore.
- The proximity to the beach. Many tourists come to the beaches in Miami and real estate investors might find some good fortune here by transforming their rentals in short-term, Airbnb rentals.
- The minimal number of new housing options. The most interesting factor when it comes to the Miami Real Estate Market is the large number of retirees. Many older people tend to move here for the friendlier weather and, apparently, they are immune to slighter market fluctuations.
These are some interesting facts and data that show potential investors in the Miami areas how profitable the real estate market here actually is.