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How Miami’s population swap is affecting real estate?

03 Oct
How Miami’s population swap is affecting real estate?

Anyone would agree that trying to find a Miamian in Miami is getting harder every day. You may think it is only you, but actually, more foreigners and local refugees are flying down to Miami and are forcing locals to find new cities to establish.

About 58,000 Floridians are moving out of their hometowns to other states, while 94 outsiders are coming to Florida daily. This loss of Locals is mainly due to a non-stop increase in real estate prices and to tax law reforms.

Even though there is an evident decrease in foreign buyers compared to previous years, there has always been an elite with the resources for moving abroad, and Miami seems like paradise to Latin American real estate buyers. New tax reforms and rental restrictions in other states such as New York, California, and Massachusetts, is creating a new trend of local refugees investing in real estate, whether as an investment or as a retirement solution.

Most nationwide Miami real estate investors are establishing in Miami, and requirements are somehow different for this target than from locals. There are some high-end design preferences for those how are looking for a place to retire.  Brand new condos like Palazzo Della Luna and the Monad Terrace condo have taken into account those needs and have included some unit features such as custom kitchens, bay views tubs, porcelain flooring and more!

Most likely, the immigration to the Sunshine State will be beneficial to the rental market, as, with higher buying prices, the renters rise exponentially.  This will decrease the available inventory and median rental prices will start to increase. If the median rent rises, the affordable housing industry will consequently start increasing. Knowing that over 70% of the population are renters, there has been a palpable impact on the whole industry.

Floridians have experienced the whole change, and staying in their hometown is getting more expensive every day. When comparing the wages to the living expenses in Miami, there is an obvious misbalance, which caused most of the inhabitants to spend 30% or more of their salary on housing. Staying in Miami for locals has become more of a luxury option to raise families.

On the real estate market point of view, the population variations are not really affecting the selling pace. Whether there are local, foreign or northern buyers, properties are selling and it is expected to continue at the same rate.

 
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Posted by on October 3, 2019 in News

 

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