Miami’s housing market compared to other U.S. cities
You don’t have to know much about the housing market to know that it’s booming these days. That being said, growth doesn’t happen evenly across the board. Instead, each market is unique and comes with its own set of advantages and challenges. Florida housing markets are on the rise, and the Miami area is no different, so let’s explore Miami’s housing market compared to other hot markets in US cities so that you can make an informed and intelligent real estate purchase.
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1. The Miami housing market
While the Miami housing market was always hot, it experienced an incredible boost due to the COVID-19 pandemic as more people moved south thanks to remote work opportunities. As of May 2021, the median home price in popular neighborhoods in Miami (Miami-Dade County, South Beach, Wynwood, Broward, Fort Lauderdale, and Palm Beach Counties) was $372,000 — a 20% increase year-over-year.
While this price is 12% above the national average, it’s important to note some unique things about the Miami real estate market to better understand it:
- The Miami real estate market sees large numbers of foreign buyers looking for investments in the long term.
- The Miami real estate market prioritizes luxury homes — with total home sales increasing over 225% year-over-year in March 2021.
- The Miami real estate market benefits from statewide policies that include no state income taxes and other pro-business policies, which lend a hand to affordability.
That being said, it’s important to note that the Miami housing market isn’t considered “competitive” in terms of the number of offers per property. The area received a score of 19 out of 100 in terms of competitiveness with an average of three offers on Miami homes that sell in around 54 days on average.
All of these factors combined make the Miami area a great place to buy a home — whether you’re a first-time homebuyer looking for condominiums or single-family homes or a real estate investor looking to expand their inventory of affordable housing or luxury homes and condos.
2. The Tampa housing market
Like Miami, the Tampa housing market has seen unprecedented growth. Unlike Miami, however, home prices in the Tampa Bay area are much more affordable. In May 2021, the median listing price for a single-family home in the Tampa Bay area was $297,500. This price is 4% higher than pre-pandemic home prices. These single-digit increases are modest compared to the combined market growth rate of 16.2% and 18.9% population growth from 2010 to 2019.
Population growth in and around Tampa is expected to continue as the job market in the area is booming. Despite the COVID-19 pandemic, more than 30,000 jobs were added in the area in 2020.
3. The Jacksonville housing market
Heading back to the East Coast of Florida, we have the Jacksonville housing market. The Jacksonville housing market is similar to the Tampa housing market in a lot of ways. For starters, it’s considered one of the more affordable markets with a median listing price of $235,000 for a single-family home. This price is 5% higher than pre-pandemic home prices in the area.
Although Jacksonville has seen more modest population and market growth compared to Tampa, it’s still growing. In fact, job opportunities grew by almost 2% in the Jacksonville area in 2020. As a result, home prices are predicted to increase by about 5%.
4. The Orlando housing market
Before we move on from Florida, we need to talk about the Orlando housing market. These days, Orlando is more than a vacation spot and is actually a great place to buy a home. This is because the Orlando area has a median home value of $240,000 — although prices are expected to increase by nearly 6% year-over-year. Combined with a market growth rate of 15.9% and 20.4% population growth from 2010 to 2019, the Orlando area is definitely booming along with the rest of Florida.
5. The Raleigh-Durham housing market
One of the hottest housing markets outside Florida is definitely the market in Raleigh-Durham, North Carolina. Tons of houses are being built here as the region ranked #1 for housing growth. This bodes well for buyers as the market is better able to meet demand with adequate supply. As a result of this housing growth, the area has seen a 4% increase in home values over pre-pandemic levels to reach a median listing price of $298,500.
6. The Austin housing market
Similar to Florida, housing markets in major cities in Texas have experienced significant growth during the course of the pandemic. Austin is widely considered to be one of the hottest real estate markets in the entire country with a median listing price of $365,000 with home values 4% higher than pre-pandemic levels.
The market in Austin is so hot thanks to record population growth from 2010 to 2019. In fact, Austin was the fastest-growing metro area in the country during this time. Growth rates around 2% are predicted year-over-year due to the area becoming a “southern tech hub” similar to that seen in Silicon Valley, California, with companies like Oracle, Google, and Tesla moving to Texas for warmer weather and lower tax rates.
7. The Houston housing market
If you’re looking for a more affordable Texas housing market, look no further than Houston. Houston boasts a median sales price of $290,000 — a price that has increased by over 11% over the past year. Price per square foot in Houston has increased even more over the past year — rising by 15.3% to $143 per square foot. That being said, sales activity has been rather stagnant — making it quite a competitive market with a score of 59 out of 100 from Redfin.
8. The Dallas housing market
The last Texas city that we need to talk about is Dallas. Dallas is a more expensive housing market with a median sales price of around $400,000. Additionally, prices in this market grew nearly 10% over the past year and are expected to continue growing. With a combined market growth rate of 15.7% and a population growth rate of 12.2%, the Dallas housing market is more competitive than most — with a score of 62 out of 100 from Redfin.
9. The Nashville housing market
One of the hottest housing markets outside Florida and Texas is in Nashville, Tennessee. The area has a median listing price of $344,920 with home values that are approximately 7% higher than pre-pandemic levels. The city has consistently ranked in the top 10 metro areas for job and economic growth over the past few years. In fact, Nashville was ranked #2 in metro job growth by the Wall Street Journal — only behind Austin, Texas.
The future of Miami’s housing market?
The future is definitely bright for Miami’s housing market. Home prices in Miami tend to appreciate faster than those in other areas. In the past ten years, real estate in the Miami area has appreciated 123.65% for an annual rate of 8.38%. This high appreciation rate puts the Miami area in the top 10% nationally for real estate appreciation.
Many people are worried about a housing market crash similar to that seen in 2008. However, such a crash is extremely unlikely in Miami these days. For starters, home prices in the area were 60% overpriced in 2008 — contributing to the crash. Additionally, income levels in the area are stronger than they were back in 2008 and people are more easily able to afford their homes. Finally, low interest rates continue to bolster the market so that people can afford more houses as well as refinance at more favorable rates.
How to take advantage of Miami’s housing market
So how can you best take advantage of Miami’s housing market? Obviously, in a hot seller’s market, you should sell if you can before the market begins to collapse. At the same time, it may make sense to buy in the area before the list price goes up even further. In a dynamic locale like Miami, you can reasonably expect both the housing and job markets to continue to grow indefinitely.
To start the buying process, you need to meet with lenders to figure out how much you can afford. Alternatively, you may want to consider a mortgage broker. In any case, Vaster Capital is here to help guide you through the buying process from start to finish. Whether you’re a first-time homebuyer or a foreign investor, we have significant knowledge and experience in the South Florida real estate market to help make your dreams a reality.
Take advantage of the Miami, FL housing market before prices get any higher. Reach out to the lending experts at Vaster Capital for personalized advice and professional insight into this competitive market. Also, check out some of our other online real estate resources for more information on the market and how you can take advantage of it.
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