The market was very strong for real estate in Miami in 2021, and people who had their Florida real estate licenses had a boom year. Prices were high and inventory was low. More than 300,000 people migrated to the state or bought second homes. Although the competition was fierce, the savvy professionals who knew the market had a prosperous year.
Miami Real Estate Basics
The current population of Miami-Dade County is more than 2 million, with an estimated 500,000 living in the city itself. Miami Is the second-largest city in Florida and in the top 50 largest cities in the U.S. Spanning about 50 miles, it's a coastal city with an extremely diverse population. The county contains about 1 million of the 10 million housing units in the state. Homes have an average value of $465,988, meaning a great real estate agent in Miami can earn a great living.
Why Miami Remains a Strong Market
A number of factors contributed to Miami's real estate boom, and that trend is expected to continue.
Strong tourism. With its beautiful beaches and booming metropolis, Miami remains a city that offers both work and play. Conferences, cruises, and vacations bring a steady stream of visitors to the area.
Warm climate. The pandemic prompted people to move to warmer climates with an affordable cost of living. Miami reaped the benefits of that migration, as noted above. The ability to work from anywhere will help ensure that trend continues.
Businesses are starting to move to or launch in Miami. In addition to five fast-scaling tech start-ups, established companies like Blackstone and JetBlue set up shop there, and Amazon located a huge warehouse in the area. A comprehensive list of Miami companies was published by NAI Miami, a source of commercial deals. Real estate agents will benefit from the influx of management looking for homes for their families, and the employees who work for those companies.
Home prices are going up. With an appreciation rate of 139.07% over the last ten years, Miami is now in the top 10% nationally for real estate appreciation. If mortgage rates remain relatively low, buyers will be willing to pay more for homes, leading to stronger commissions for real estate agents.
International buyers. As travel restrictions ease, international buyers and investors will come into the market and look for homes. The international market for homes in Miami includes Canada, the UK, Germany, and France.
Increased need for affordable and second housing. Although the luxury home market has always been strong, experts predict that buyers will also be seeking affordable housing, including condominiums. The market for second homes remains steady, and demand for these homes is up 70% from pre-pandemic levels.
Flipping opportunities. Because inventory is tight (in Miami, as well as other hot markets), fix-and-flip opportunities may abound. Buyers and investors can turn dated and foreclosed homes into great houses for new buyers.
More Millennial buyers. Millennial buyers, which are a large part of the new homeowner market, are flocking to Miami. About 68% of the people living in Miami are between the ages of 20 and 34.
How to Prosper in the Miami Real Estate Market
First, if you are not currently licensed as an agent, invest in this important career step. Choose a program that is knowledgeable about Florida real estate trends and has deep experience in the market.
In addition, look to other agents who have been successful in the Miami market. Join local associations and become a part of the community. Establish a niche for your real estate business and prepare to meet the needs of a diverse buyer base. Read local and national real estate and business media and stay one step ahead of the trends.
Now is a Great Time to Launch Your Miami Real Estate Career
Start your Miami real estate career here. Register today for our online Florida pre-licensing course that gives you an advantage in Florida.