New Report Shows Miami as the Most Competitive Rental Market in the United States
Renting is at its greatest level in fifty years, with almost 44 million American households renting. However, some renters found it difficult to find a new place to call home in 2022, particularly in the highly sought-after South Florida region, which has long been a popular relocation destination for individuals from all over the country.
Additionally, in the past two years, more people have relocated to the Sunshine State as a result of laxer rules and the growing use of remote work. As a result, migrants found themselves in a competitive market with local residents looking for units, making Miami-Dade the most popular rental market in the country.
RentCafe.com examined the 135 biggest U.S. markets examing five crucial metrics that include the number of days apartments were vacant, the percentage of occupied rentals, the number of prospective renters, the percentage of rental renewals, and the share of apartments completed for the year.
The largest metro areas in Florida opened new apartments this year more quickly than any other city in the nation. However, this was still insufficient to meet the rising demand in such a well-liked location.
Due to record-high occupancy and high lease renewal rates, Miami had the hottest rental market in the United States. Numerous Millennials and even members of Generation Z who wanted to work and live in the Sunshine State were drawn due to a number of factors, including the absence of a state income tax, the business-friendly environment, and the thriving tech scene.
Renters in Miami are in a very difficult situation because practically all units are occupied, especially since 75% of apartment residents choose to stay put this year. As a result, Miami’s rental apartments were full in 25 days on average, with a record-breaking 32 renters competing for each available property. Additionally, despite the metro area’s stunning 2.8% rise in apartment supply in the first half of the year (the highest growth rate among the top 20 cities in the ranking), the high demand for rentals is still far from being satisfied.
Notably, the city’s favorable business environment, which draws corporate relocations and expansions, maybe the cause of this demand. Orlando is also a member of the Florida High Tech Corridor, which attracts business people, students, and young professionals.
Florida welcomed the newest residents between 2020 and 2021, according to the US Census Bureau (220,890 people looking to escape high taxes and frigid winters in the North). Arizona (170,307) and Texas (170,307) were much behind it (93,026). And even while developers are hard at work constructing apartments all around Florida, the supply of recently created rentals is just insufficient to meet the soaring demand for housing.
Miami Real Estate Sales Soar for the 17th Consecutive Month
According to the Multiple Listing Service (MLS), Miami-Dade County real estate achieved its best-ever February sales month as existing condo transactions climbed by double digits for the 17th consecutive month, following the historic January 2022 and 2021 year sales.
Total house sales in Miami-Dade County increased 13.2% in February 2022, from 2,485 to 2,814. Due to low availability, Miami single-family home transactions fell 7.9%, from 1,093 to 1,007 units. Existing condo sales surged jumping up 29.8%, from 1,392 to 1,807, marking the 17th consecutive month of double-digit year-over-year condo gains.
Home sales were much higher in February 2022 compared to February 2020 with total house sales up 51.1% compared to February 2020, from 1,862 to 2,814. Miami single-family house sales are up 13.9% while condo purchases are up 84.8% from January 2020.
Miami luxury condo sales are up 45.4%, with mid-market transactions ranging from $400,000 to $600,000 on the rise. In addition, Miami’s existing condo luxury ($1 million and more) sales increased 45.4% year on year to 237 deals.
Miami single-family houses valued between $400K and $600K climbed 24.7 percent year over year in February 2022, with 389 sales. Miami’s existing condo sales in the $400K-$600K price range surged 101.8 percent year over year to 345 deals in February 2022.
Single-family home inventory fell 29.3 percent year on year in February 2022, from 3,128 active listings the previous year to 2,212 this month. Condominium inventory fell 55.1 percent year on year to 5,272 from 11,735 during the same time in 2021.
Months’ supply of inventory for single-family homes has been decreasing since July 2019, suggesting high demand. Months of inventory for single-family homes fell 39.3 percent to 1.7 months, indicating a seller’s market. Existing condominium inventory fell 74.5 percent to 2.6 months, indicating a seller’s market. A balanced market between buyers and sellers provides six to nine months of supply.
The total number of active listings at the end of February 2022 fell 49.6 percent year on year, from 14,863 to 7,484.
In February 2022, Miami-Dade County single-family median prices grew 19.1 percent year over year, rising from $450,000 to $536,000. The median price of a single-family home in Miami has climbed for 123 straight months (10.25 years), the longest unbroken stretch on record.
Year over year, the median price of existing condos grew by 26.7 percent, from $300,000 to $380,000. The median price of a condo has risen in 125 of the previous 129 months.
Mortgage rates have typically been low, making house purchases more accessible. The average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.76 percent in February, up from 3.45 percent in January, according to Freddie Mac. The overall commitment rate for 2021 was 2.96 percent.
Miami real estate is attracting several bids, with buyers willing to pay above the asking price. In February 2022, the median percent of the initial list price obtained for single-family houses was 98.7 percent, up 1.5 percent from 97.2 percent the previous year. For existing condominiums, the median percent of the original list price obtained was 97.8 percent, up 3.7 percent from 94.3 percent last year.
Miami cash sales accounted for 75.6 percent of all sales in February 2022, which is much higher than the national average. In February 2022, cash transactions accounted for 43.9 percent of Miami closed sales, up from 35.8 percent in February 2021. According to the most recent NAR figures, cash accounts for around 25% of all house sales in the United States.
Cash sales made up 53% of all existing condo sales in Miami and 27.5 percent of single-family purchases.
Miami Real Estate Sales Soar for the 16th Consecutive Month
According to the MIAMI Association of Realtors and the Multiple Listing Service, Miami-Dade County real estate extended its record run of house sales with its best-ever January sales month, as existing condo transactions climbed for the 16th consecutive month.
The record-breaking 2021 included the greatest annual total dollar volume, all-time year total house sales, most single-family home sales, most condo transactions, and the highest number of cash transactions. Now, 2022 brings its best January sales month in history.
Homes sales rose 19.6% in January from 2,211 to 2,645. Single-family home transactions increased from 968 to 1,008 transactions at about 4.1%. Condo sales saw a higher increase at 31.7% from 1,243 to 1,637 transactions. This marks the 16th month of double-digit condo gains.
Compared to last January, home sales are up 42.4% from 1,857 to 2,645 with single-family homes at 13.6% and condos at 68.8%
Luxury condo sales also surged at 69.9% compared to last January at 192 transactions. Single-family luxury homes rose 20.4% at 201 sales.
Median-priced Single-family homes between $400-$600k rose 31.3% to 386 transactions for January. Condo sales in that same price range rose 98% with 303 sales in January.
Inventory decreased for both single-family homes and condos. Single-family homes decreased by 9.1% while condos decreased by 3.6%.
Median family homes sale prices increased 10.8% in January. Single-family home prices rose for the 122 consecutive months while condo prices increased for 124 consecutive months.
Total dollar volume hit $2.1 billion in January with single-family home volume increased 16.7% while condo volume increased 56.2% for January.
The sales percentage of Miami out preforms the Nation while in state, single-family home sales increased 1.4% in January 2022. Condo sales increased 6.7% in January 2020.
Single-family median sales percentages reached 98.1% for January 2022. The median sales percentage for condos increased by 3.2% compared to last year’s median sales percentage.
Cash sales in Miami make up 40.1% of real estate transactions, which is 48.5% more than the national average for January 2022. Cash sales made up of 49.4% of condo transactions while 25% of the single-family transactions were in cash.
According to the Miami Chairman of the Board, Fernando Arencibia Jr. stated, “The demand for Miami real estate has never been higher from both domestic and global homebuyers. Major U.S. companies opening HQs in Miami, surging domestic and global migration to South Florida, a larger percentage of Florida residents in their prime home-buying years, the expansion of remote work, low mortgage rates, Florida’s low taxes, relaxed Covid restrictions, South Florida’s healthy lifestyle and more have each played roles in Miami’s booming sales.”
Miami Dade County Breaks More Records for Home Sales in September 2021
Home sale records continue to be crushed month over month for Miami-Dade, marking its best September sales in history and setting the bar for the most condos sold in a year’s time. The previous annual record was 17,142 in 2013, while the current condo sales have equaled 17,942 with only 3 months to go!
According to the Multiple Listing Service (MLS), homes sales for Miami Dade have risen 20.2% at 3,031 transactions. This is up from the 2,521 transactions that occurred in 2020. Simultaneously, we saw a dip in single-family home sales at 3.6% at 1,241. This may be due to the lack of single-family home inventory. Condo sales have exponentially increased at 45.2% at 1,790 for September.
According to the Miami Chairman of the Board Jennifer Wollmann, with international travel resuming in the United States in November, the expectation is that foreign home buying will grow in the coming months.
Miami is also on track to have its best year ever for single-family home sales. For September, single-family home sales have increased by 35.3% at 3,031 total transactions.
Miami condos sales have increased by 45.2% in September with major increases in pricing for properties over $250,000.
Luxury sales have also been in the records spotlight with a 31.4% increase with 209 sales for September. For properties $1 million and up, sales have increased 96.5% at 167 transactions. Currently, there is a 3.9 month of supply for luxury single-family homes and a 9.4 month supply for luxury condos.
Single-family home pricing falls between $400,000 to $600,000 increasing by 27.4% higher than September 2020. Condo sales also saw a heavy rise at 161.1% with sale prices between $400,000 to $600,000.
Inventory has decreased for both single-family homes as well as condominiums. Inventory single-family homes decreased by 42.1% since 2019. Condominiums have decreased from 68.8% since 2019 as well.
Single-family home median prices have increased by 11.5% from $435,000 to $485,000. Condo median prices have increased by 24.5% from $265,000 to $330,000
Miami-Dade cash sales are up by 62.2% and represent 37.3% of Miami’s closed sales in September. According to statistics from the National Association of Realtors, almost 23% of all United States home sales are cash. Cash sales count for 45.9% of Miami condo sales with 24.9% for single-family sales.
Record Set for Miami-Dade for Most Home Sales in a Quarter for Q2 2021
According to the Multiple Listing Service (MLS), Miami-Dade real estate has set a new record for most home sales in a quarter. This new record is of no surprise due to the multiple records that have been set in Miami this year alone. In July, a waterfront mansion sold as the highest-priced home sale ever in all of Miami-Dade. Bay Harbor Islands also had a record-breaking sale of $12 million on a recent waterfront home, making it the highest-priced sale in all of Bay Harbor.
Total home sales for Miami-Dade County rose 142.4% from 4,766 to 11,553 sales. Single-family homes sales also rose from 66.9% from 2,688 to 4,486. Existing condo sales increased from 2,078 to 7,067 making it 240.1%.
Comparing to quarter 2 2019 to quarter 2 of 2021, total home sales rose 46.9% overall from 7,861 to 11,553 total transactions. As for condo sales, which are up by 76.3% from 2019 to 2021 and single-family homes sales up 16.4%. These numbers make this quarter the best-selling quarter for all of Miami-Dade since 1993.
Luxury sales have also rose 346.4% for this quarter. With an influx of buyers from the West Coast as well as remote workers, $1 million-plus homes are not staying on the market long. Condo luxury sales have increased by 651.6% for this quarter as well.
Single-family median home prices rose 31.6% from $380,000 to $500,000. Condo sales saw an increase as well at 25.8% from $262,250 to $330,000. The total home sale volume for Miami is $9.3 billion.
One of the drawbacks for sales is the lack of inventory for both condo and single-family homes. Active listing total 11,262 for this quarter at 41.8%, which is a large decrease from 19,358 from 2020. Condo inventory showed a substantial decrease of 41.7% from 4,926 to 2,853. With the interest rates maintaining a low rate and sellers wanting to take advantage of the market, we hope to see an increase in supply in the future.
End of June Condo Sales Reach $259 Million
Another week of real estate sales shows a significant increase in volume and the total number of condos sold for Miami-Dade. According to the MLS, for the week of June 27th, through July 3rd, 357 condos sold for a combined $259 million. The previous week shows only 237 condos sold for a combined value of $159 million.
The average sales price for condos is $725,000. Last week’s price fell to $671,000. We are seeing a steady climb in condo price averages as well as an uptick in new construction sales.
The most expensive sale last week was non-other than a penthouse at The Mansions of Acqualina in Sunny Isles Beach that sold for $27 million. This 9,103 square foot condo features four bedrooms, 6.5 bathrooms, and 2 kitchens, also fully furnished by Fendi/Bentley. This developer-owned (The Trump Group) condo sold for $3,000 price per square foot. This sale is considered the third-highest condo sale in Miami-Dade history.
The second most expensive condo sale was at Continuum of South Beach. This unit sold for $8.6 million at a $2,459 price per square foot. This property was on the market for 108 days. This condo features 3 bedrooms, 3.5 bathrooms, with 3,500 square feet of living space. The property also features an Italian kitchen, marble floors throughout, and gorgeous ocean views.
One of the more notable single-family residential sales includes an Indian Creek Island Mansion purchased by a developer, Todd Michael Glaser for $24 million. This property located at 37 Indian Creek features 7,236 square feet of living space situated on 1.2 acres. Glaser plans to demolish this estate to build a larger home with 2 pools and double the square footage with hopes to list the new construction home at $50 million.
