More than its famous beaches, Miami has a lot to offer. Its varied economy and easy access to international markets make it a hotspot for residents and investors as well as a gateway to global commerce. Over the last few decades, the city has expanded dramatically. Examine the local Miami market in further depth to better understand the difficulties and possibilities that await real estate investors in 2021.
What Makes Miami Special
The metropolitan region of Miami-Dade, Florida, is home to approximately 2.8 million people and boasts the country’s highest foreign-born population, with Hispanics accounting for the majority of the population. Its strategic location on the eastern point of Florida’s peninsula, just beyond the Everglades, makes it accessible by boat, land, or sea to the rest of the United States and abroad.
Three international airports and many international cruise and shipping ports are located in the city, making it simple to travel to several South American and Latin American nations.
Three counties make up the Greater Miami area:
- Palm Beach
- Broward
- Miami-Dade
Outside of Miami, the county includes major cities such as West Palm Beach and Fort Lauderdale. Each winter, travelers from colder northern states flock to the city’s tropical environment to enjoy its nightlife, art and culture, cuisine scene, and world-famous beaches.
With Florida’s low taxes, the city attracts a diverse group of highly educated, high-earning professionals to work, live, and play, including physicians, attorneys, bankers, worldwide consultants, investors, and others.
Miami-Dade County
Wynwood or Allapattah. If you’ve ever visited Miami, there’s a high chance you’ve been to Wynwood, the city’s up-and-coming district. This neighborhood is known for being the hottest new arts district, with hundreds of new projects springing up around every corner, including chic new boutiques, restaurants, pubs, and art galleries.
This was the area to buy in ten to twenty years ago, but as prices have risen to meet demand, most investors have been priced out. This is why many investors are interested in the Miami Design District or Buena Vista areas immediately north of Wynwood, as well as the Allapattah neighborhood next to Wynwood.
Allapattah offers a variety of duplexes, single-family houses, and multifamily buildings, making it ideal for fix-and-flip investors as well as long-term rental landlords. There’s space for a profit with pricing ranging from the mid-$200s to the mid-to upper-$500s, and rental rates ranging from $1,100 to $1,600.
Coconut Grove. Coconut Grove lies in the southern section of Greater Miami and is next to Coral Gables, a prominent and opulent neighborhood with a renowned country club and primarily multimillion-dollar houses. Coconut Grove is the oldest neighborhood in Miami and certainly the best place to buy coconut grove houses. You can check out coconut grove houses for sale and more deal online.
This is a more inexpensive choice for University of Miami students than Coral Gables itself, while still being close to campus. The price ranges from the mid $200s to the upper $300s, indicating that the purchase price is reasonable in comparison to the rent, which ranges from $1,300 to $1,800 per month.
Bayshore. Bayshore is the place to go if you’re looking for beachfront condominiums and holiday rentals. Bayshore, which is located on Miami Beach, is mostly made up of big condos and south beach apartments for sale, although it does not have the exorbitant prices associated with other Miami Beach districts.
Condos vary from the mid-$200s to the low $400s, but long-term rentals range from $1,600 to $1,900, and vacation rentals range from $100 to $125 per night, depending on the time of year and unit size.
University Park and Town Park Estates. For landowners interested in investing in student housing, the region surrounding FIU is ideal. There is continuous long-term demand, based on the number of students that attend the university.
Rents range from $1,000 to $2,000 per month, depending on condition, size, and property type, and range from $150,000 to $300,000 for a condo and mid-$400s to high $500s for a single-family home or duplex.
Broward County
Central Beach Alliance. The majority of the condominiums at Central Beach Alliance are oceanfront high-rises, making it an excellent short- or long-term rental property. Condos range in price from the upper $200s to the mid-$400s, with nightly rates ranging from $130 to $200 per night, so depending on your investing plan, you might make a nice profit.
Riverland. Riverland is a mixed-use neighborhood featuring multifamily units and single-family houses in a range of prices, making it ideal for fix-and-flip investors and long-term landlords. Property values range from the mid-$300s to the mid-$500s, implying that, depending on the exit plan, investors must be careful regarding property pricing.
Palm Beach County
Northwood. North of West Palm Beach lies the Northwood neighborhood, which consists of many different communities, all of which have the name “Northwood” in some way. The region is suitable for fix-and-flippers or rental investors, with a mix of single-family houses, duplexes, triplexes, and larger multifamily residences.
Depending on the property type, area, and size, properties can sell for anywhere from the mid $200s to the upper $400s, with rentals ranging from $1,400 to $2,000. Keep in mind that the properties grow more costly as you move closer to Poinciana Park and Northwood Pines.
Lakeworth. Lakeworth is a city in Palm Beach County, approximately south of West Palm Beach, rather than a neighborhood. In comparison to nearby West Palm Beach to the north and Delray Beach to the south, the city features a mix of single-family residential and multifamily homes at a considerably more moderate rental pricing.
Investors should conduct thorough due research on potential communities, as certain areas are more prone to greater crime and dilapidated housing, but the dollar and rent go a long way here.
Miami is a trendy investment region right now, but investors should think about their investment carefully before making a purchase, given the local market’s inherent instability. Where you invest and what you invest in affects how successful you may be as a real estate investor in this market.
Environmental issues such as hurricanes, flooding, and increasing water levels as a result of climate change must also be considered by investors. Miami has long struggled with daily rising tides flooding concerns, spending trillions of dollars over the last decade and resolving just a fraction of the problems.
Miami’s economic industry validates the real estate market, but it appears that demand is driven more by foreign interest than by economic prospects for its people, making it a difficult and dangerous market for investors to enter.
