You've probably heard about the home building slow down we've had since the crash of '08. Thankfully, things are now picking up, and we're already seeing new constructions in Miami.
On March 17, 2021, the Census Bureau released the latest housing construction statistics. Last month, housing completions in February were at an annual rate of 1,362,000 homes. This is 2.9 percent (±10.0 percent)* above the revised January estimate of 1,324,000 and is 5.0 percent (±11.9 percent)* above the February 2020 rate of 1,297,000. Single-family housing completions in February were at a rate of 1,042,000; this is 2.8 percent (±10.5 percent)* above the revised January rate of 1,014,000. The February rate for units in buildings with five units or more was 314,000.
This is great news, because we’re slowly but surely seeing an increase in national housing units. But what about new constructions in Miami? It’s difficult to pinpoint the exact numbers at the moment on a monthly basis (this data is only available annually).
According to KRG Services LLC—a subcontracting company—they’re working on new constructions in places such as Doral, Hollywood, Homestead, and Kendall.
If you haven’t noticed the trend yet, it’s this: people are moving further away from the beach. Specifically, people are moving further Southwest and Northwest. That’s because home values in Miami proper compared to home values in Homestead or Hollywood are very different.
Not only that, but the next wave of homeowners has arrived. Millennials are stepping up to buy homes—but only if certain conditions are met.
Since the pandemic began, people have been looking for single family unit homes to function as gyms, daycare centers, and home offices, besides living quarters.
That means that millennials are willing to go the extra mile, literally. There seems to be no sacrifice millennials will make in order to find homes they want that are within their price range. Naturally, new constructions in Miami are following these trends.
For those of us who have lived here in Miami for a long time, we know that there are two Miamis: the luxury lifestyle version of Miami, and the everyday, working class Miami. Depending on which two of these worlds you’re a part of, home buying will look very different for you.
For example, those who have the means, can look for homes in Brickell, Miami Beach, Coconut Grove, etc. For those of us who can’t afford the heftier price tags of these areas, we look to buy further Southwest or Northwest, where you get more square footage for the price you end up paying.
So whether you’re a single professional or a family that wants to put down roots—the home buying experience varies.
That isn’t to say that either one is better than the other—on the contrary! I believe that we need to be very realistic about our circumstances. Strict lending standards were put in place for a reason—to make sure you can afford your home.
I get this question a lot. As we all know, Miami is the cultural capital of Latin America, as well as some European countries. It’s only natural that when foreigners look to invest abroad that their eyes settle on Miami.
This happens for several reasons: inflation in an investor’s home country, the desire to have investment properties in the US, and the convenience of being able to visit the States without having to pay rent or look for lodging.
In the end these two very different, but interrelated financial worlds collide to form what is the Miami housing market—a competitive, complex landscape of condos, single family units, and luxury apartments that are snapped up as soon as they’re listed—because after all—who doesn’t want to live under swaying palm trees and sunshine for all twelve months of the year?