Miami Real Estate Market Predictions 2019
by Marco Santarelli
Miami hits most people’s radar as a tourist destination, though
it periodically hits the news when it looks like it may be hit by a
hurricane. However, Miami is a large, thriving city with a strong
housing market. Let’s take a look at the Miami housing market
before sharing top 10 reasons to invest in the Miami real estate
market in 2019. Miami is home to just under half a million peo-
ple. However, the Miami housing market is far larger than that
– it includes much of southeast Florida and more than five mil-
lion people. That makes the Miami real estate market the seventh
largest in the U.S., and it is the second largest housing market in
the southeastern U.S.
However, that isn’t reason enough to consider investing in the
Miami real estate market. According to a report published by
Zillow in Dec 2017, Miami was the country’s fourth most valu-
able housing market. Trailing only Los Angeles (total value of
$2.7 trillion), New York (2.6 trillion), and Washington (996.7 tril-
lion), the total value of Miami’s housing market is an estimated
864.2 billion, which represents a solid 4.7 percent increase year
over year. With that kind of increase every year, just think of what
would its valuation be when head into 2019?
Real Estate Appreciation Miami FL
Real estate appreciation in Miami has been tracking above aver-
age for the last ten years, according to NeighborhoodScout’s data.
The cumulative real estate appreciation rate in Miami over the ten
years has been 22.64%, which ranks in the top 30% nationwide.
This equates to an annual average Miami house appreciation rate
of 2.06%. Appreciation rates are so strong in Miami that despite
a nationwide downturn in the housing market, Miami real estate
has continued to appreciate in value faster than most communi-
ties. Looking at just the latest twelve months, Miami appreciation
rates continue to be some of the highest in America, at 7.56%,
which is higher than appreciation rates in 82.79% of the cities
and towns in the nation.
In Miami-Dade the housing affordability crisis is getting worse.
According to the Miami Association of Realtors’ June 2018 re-
port, median single-family home prices increased from $335,000
to $355,000 year-over-year; it was the 78th consecutive month
of growth. Existing condo median prices rose 2.1 percent, from
$235,000 to $240,000. For renters, Miami’s greater downtown
area is the place to be.
Brickell, Downtown and Midtown are some of the top three hot-
test areas in Miami-Dade right now for renters. For buyers, the
top three hottest areas are Coral Gables, Miami Beach and Co-
conut Grove. Budget-conscious home buyers should consider
Homestead, Miami Shores and Kendall. Investors will want to
pay attention to the Design District. Miami Beach remains popu-
lar, but watch out for inflated prices. And traffic has become one
of the key factors when deciding where to live.
For the fourth year in a row, Miami Beach was once again named
the most overvalued neighborhood, with a median price per
square foot price of $520, according to Zillow. Brickell clocked in
second at $497 per square foot, while the luxury enclaves of Sunny
Isles Beach ($554) and Key Biscayne ($753) tied for third. Home-
stead, where the median square foot price is $140, was deemed
the most undervalued neighborhood. Miami Shores ($338) came
in second, because its price is lower other areas with comparable
housing stock and quality of schools, such as Pinecrest and Coral
Gables. North Miami Beach ($237), Little Havana ($254) and
Kendall ($226) tied for third. For more details you can read this
report published in the Miami Herald.