Contrary to what is happening in some of the main cities of the world such as New York or London where the pandemic accelerated the exodus process, people have begun to live in Miami while the labor supply increases. There are several reasons that can explain this: its geographical location, its tropical climate all year round, its wide cultural offer and, also, that there is no profit tax, among many others.
What differentiates this wave of immigration to the capital of Florida is that the migrants are mainly founders of start-ups that seek to turn Miami into the new Silicon Valley and great figures of the financial sector such as Carl Icahn or Antonio García.
The obvious question at this point is is is investing in Miami real estate a good choice? The answer is yes. Despite being one of the cities hardest hit by the 2007 financial crisis, the recovery has been steady and sustained. Even in the crisis derived from COVID-19, Miami has been recovering its jobs by twenty-four percent compared to eight percent in San Francisco.
But the evidence of being an excellent investment does not end there. The current median value of a home is $323,000, while in California it costs $618,000, in Massachusetts $471,000, in Colorado $437,000 and in New York $347,000. Other reasons are:
- The value of the real estate is reasonable compared to the 2007 figures
- There is no overbuilding of new houses or apartments.
Miami is a city of more than six million inhabitants, depending on the location, within the city, there are real estate offers for all budgets. From minus fifty thousand dollars to over forty million dollars. In the last five years it has ZIP Codes with higher levels of appreciation, as well as other places where prices remain relatively stable.
Those with the highest valuation, more than forty percent of the value in the last five years, are 33125, 33135, 33142, 33127, 33150, 33168, 33147, 33168, 33054, 33162, 33161, 33014, 33012, 33013, 33010 and 33167. In contrast, peripheral and more affluent areas have lost a fraction of their value. They are ZIP 33139, 33140, 33141, 33180, 33160, 33132, 33129, 33163, 33137, 33149 and 33154 located in South Beach, Aventura and Miami Beach.
There are several reasons for this phenomenon: poorer areas have begun to gentrify, while in luxurious areas they tend to be more exposed to hurricanes or tropical storms, even though they tend to retain their real value. Speculation has also played an important role. It is no coincidence that it is precisely the poor areas that are most valued.
When investing in the real estate sector of Miami, it is not advisable to invest in the lowest neighborhoods because they are typically the ones that lose the most value in the event of a recession and because of their limited access to basic services or healthy food. It is also not advisable to buy land in luxury areas, from the outset its price is very high and it is not easy for the value to grow more.
In conclusion, we should look for sectors of medium value, with solid growth in prices, where you can walk, basic services (health, supermarkets, schools, parks, etc.) are close and are middle income.
As you can see Miami is a city in continuous growth and this is a good sign for real estate investors, if you want to take advantage of the opportunities of Real Estate Investment that this city has for you and your family, at PFS Realty Group we are ready to advise you, write to us at info@pfsrealty.kinsta.cloud for more information and also live our website to get to know us more www.pfsblog.kinsta.cloud. You can also request a report to know in detail the growing real estate market in Miami in figures.