Since 2021 Miami’s luxury real estate market in Miami has grown by slightly over 28%, making it one of the top three fastest-growing markets in the USA, according to the 2022 Wealth Report. The reason for it is very obvious. So, let’s not sugarcoat this. Is it more appealing to you to work from home in a pleasant climate where you can open your windows and feel the breeze while collaborating with other people in your profession without worrying about excessive taxes if we are quarantined in place, or to work from home in a snowy, dull climate where we are subjected to these same taxes? The solution is easily discernible.
Current Miami’s luxury real estate market trends and some fun facts
In January 2023, the median price of a property in Miami was $525,000, up 6.1% from the previous year. Miami real estate now sells after a 71st day on the market, up from 68 days a year ago. A year ago, there were 904 home sales in January. This year, there were only 407. Most properties sell for around 5% less than their asking price and take about 72 days to go pending. A hot property can get an offer in about 35 to 40 days at or near the asking price. When looking for a new house between December 22nd and February 23rd, only 20 percent of Miami homebuyers considered leaving the city, while 80% considered remaining in the metropolitan region.
Now, here is a fun fact for you. Buyers in NYC looked at the Miami, DC, and Boston real estate markets the most but Miami was by far the most researched. Miami homebuyers simply prefer Cape Coral over other popular destinations like Orlando and Tampa. There are many luxury apartments available right now in Cape Coral but to be able to see them you will need to find a local realtor who specialized in luxury properties.
Why does everyone seem to be fixated on the Miami housing market?
The first reason is very obvious. Wealth is rising in this area. Which is obviously a good thing. There are now 2,834 extremely wealthy people living in Miami. A growth of 11.9% from 2022 and a projected increase of 28% over the following five years. Not only is local wealth increasing. Wealthy buyers from throughout the United States and abroad are drawn to Florida by the state’s low tax rate and the allure of seaside living. Inequality in wealth has widened as a result of the pandemic. This has led to a heightened focus on housing affordability from policymakers. We anticipate an increase in the quantity and severity of taxes as well as the cooling measures in 2023 as governments seek to rebalance the balance and plug deficits.
The second reason
The 2022 edition of the Elite International Residential Index, which tracks the performance of luxury home prices in one hundred of the world’s most desirable markets, found that Miami was among the best performers thanks to a rise of 28.2 percent. Race for space, an increase in co-primary living, a spike of hybrid working, and a return of ex-pats are just a few of the 2020 trends that will reach hyperspeed in 2023. The substantial wealth creation owing to economic growth, accumulated savings during previous lockdowns, and booming equities markets all contributed to the increased flow of capital into real estate. Now you know.
A homebuyer in Miami will need about $3 million. That is slightly less than the corresponding entry point in Berlin. Also, it’s much greater than the sum necessary in Cape Town, Mumbai, or Sao Paulo. These figures are a reflection of not just prices but also overall market activity. We anticipate that as sales volume increases, prices will fall.
City Wealth Index
City Wealth Index is a global study of affluent people’s preferences. They focus on where to live, work, and invest. When it comes to wealth, investments, and quality of life, Miami excels. That has been a trend for years now. As the value of cities as centers of communication, cultural production, and economic development became more apparent in 2022, several cities, including Miami, made a comeback. Now let’s see where you can buy your house or even a second home.
It’s safe to say that this is the wealthiest area of Miami. You will find the most amazing luxury properties right here. Models, actors, athletes, and billionaires have all called this private island home at one time or another. There are 33 breathtaking mansions worth a combined total of almost 33 million dollars on this tiny, secluded island. Each of the mansions is up to 35,000 square feet in size and features an elegant fusion of European, Mediterranean, and Spanish design elements. Elevators, exercise centers, personal cinemas, wine cellars, professional kitchens, pools, saunas, cabanas as well as swim-up bars, and breathtaking ocean views are all additional private luxuries. Star Island is by far the most expensive area of Miami, with average home values over $30 million. This is where people nowadays are looking for Miami’s luxury real estate.
If you find a perfect place for you and your family, you will have specialists at your disposal to help you with all your moving needs, unpacking, and settling in.
Another neighborhood with plenty of luxury properties
Indian Creek Island is home to some of Miami’s second-highest income earners. This island has earned the nickname “Billionaire Bunker” due to its wealthy residents and their lavish lifestyles. On its 300 acres, just forty royal estates sit, all of which flank the island’s perimeter and offer occupants unrivaled access to the water. The island’s low population density makes it an attractive destination for people who value their own space. Residents can feel safe and secure in their homes thanks to the gated entrance. Indian Creek Island is the second wealthiest neighborhood in Miami, with average home values of around $20 million. Hopefully, you know a lot more about Miami’s luxury real estate market. Have fun exploring more!
Lisa Roberts has been engaged in writing blog articles for the last 7 years. Although she started off her career in the moving industry, her experience brought diversification to the content topics she covers. Today, her range of topics spans from moving across the globe to everyday lifestyle tips, marketing, real-estate news, etc. In her spare time, Lisa enjoys running, reading books and spending time with her dogs Lue and Sill. As a great lover of life, she finds something practical and useful in every experience, which contributes to her portfolio as well.