Miami’s single-family home market has performed very well over the last 10 years. In this blog, we show you the performance of Miami’s main residential markets and we explain why the single-family home market in these neighborhoods has performed so well. When we refer to Miami’s main residential markets we refer to Coral Gables, Coconut Grove, Pinecrest, South Miami, High Pines, and Ponce Davis. These are Miami’s most desired areas for single-family homes and preferred with families relocating to Miami. Although these are separate areas we refer to them as Miami’s core for single-family home living. If you are looking for a safe neighborhood with high-end real estate close to the city’s best schools this is the area to be and therefore we often refer to this area as the “Prime Residential Market”. As always we divided the market into different price ranges.
Why have these Miami Homes performed so well?
First and foremost single-family homes are a necessity purchase, which makes it a market that will always be in demand. Buyers, which are mostly families, need to find a home for their family and will not sell this home at the first signs of economic hardship, something we often see in purely investor-driven markets. Miami’s primary markets are very much in demand with local and relocating families as they are close to Miami’s best private schools. Families want to be close to their children’s schools and therefore prefer the Gables, The Grove, Pinecrest, or South Miami. These areas are also very much in demand because they are safe, offer many gated communities and superb waterfront homes. Besides the local demand for homes in Miami’s prime areas, Miami has established itself as a truly global city and a new mecca for the ultra-wealthy. As of 2020, Miami is seeing a very high amount of domestic relocations from the high-tax states (New York, New Jersey, California). While Miami was already experiencing a high demand for single-family homes due to tax relocations, Covid-19 accelerated this movement and led to a crazy amount of relocations into Miami, quickly drying up inventory. In the below graphs you will see that each market saw a massive jump in sales in 2020 resulting in low inventory levels. These days prices are rising at a much quicker rate than previously seen and those who cannot find what they are looking for buy land or a dated home to make it their own, which in turn will lift the overall quality of this market. This market will continue to increase in value as long as there is demand and we do not expect this demand to slow down any time soon. Local families keep preferring these areas to raise a family and relocation buyers to keep flocking into our city.