Miami’s one of the more popular locations within America. Ever since the pandemic paved a path for online opportunities, people have been relocating to live somewhere more comfortable and luxurious. For a great majority of people, they’ve been moving out to Miami, Florida. The sudden increase in demand makes the Miami Real Estate Market a great opportunity for Real Estate investors.
Miami Real Estate Market Trends 2021-2022
Feel like you can’t invest in the US Real Estate market on your own? Then it might be time to take a look into GCG’s Real Estate Private Equity. Become a Limited Partner and join other investors as we handle your investments and bring you profits on a quarterly and/or yearly basis!
How Many People Moved to Miami in 2021?
With reference to the Office of Economic and Demographic Research, there were an astounding 300,000 more residents settling in Florida between 2020 and 2021!
Almost 28% of these people came from Texas, 15% from New York, and 6% from California. No income tax has been one of the driving factors for people to relocate.
Miami’s a beautiful place to be in, and the financial advantages it is currently offering are pretty hard to pass upon.
The same house that you could’ve bought for 500,000 USD a few years ago in the Miami real estate market, is now more than 1.5 million USD. But don’t let that stop you from investing because there’s still a lot of potential in Miami’s market. If you’ve got the capital, then it’s the perfect time to invest.
Miami Rent Prices
Due to the increased influx of people moving to Miami. There is an increase in rent prices.
A report from August 2021 showed an almost 20% gain in rental cost compared to last year. Almost two-thirds of the people residing in Miami are rent-payers.
The monthly rent in the Miami housing market averages about 2,200 USD with the prices being way higher for more luxurious properties.
Landlords often rent out their condos to tourists who need to stay there for shorter periods of time. On a 350,000 USD property, you can easily get 2,500 USD per month. That’s great passive income.
Miami House Prices
The median Miami real estate prices, as of November 2021 stand at roughly 390,000 USD. When we take Miami’s predictable growth into account, investors can expect a +2.7% increase in house prices in 2022.
The median price per square foot in the Miami housing market is currently 218 USD. Within a five-year period (In 2026), the average price of a Miami home can be expected to be 440,000 USD.
These numbers provide us with a good idea of where the Miami real estate market will stand in the future. However, the prices could very well rise beyond expectations due to the uncertain supply and demand within Miami.
Reasons to Invest in the Miami Housing Market
So, what exactly makes the Miami real estate market so great? Miami has seen a steady increase in its prices ever since 2011. And as of right now, it’s one of the best places you can live in right now!
These are a few of the many reasons that you should invest in Miami!
- Rent out your properties on Airbnb and leverage the tourist market.
- There’re low property taxes compared to other places in the US.
- No income tax!
- High rental prices.
- Currently, Miami is a buyer’s market. Get in while you still can!
- The weather is gorgeous.
- Lower cost of living compared to other metropolitan cities.
How Long Does It Take to Sell a House in the Miami Housing Market?
Selling a piece of property may be a simple process, but can often be a relatively long one. There are five stages to successfully selling your house,
- Making a listing
- Receiving offers
- Shortlisting offers
- Receiving the payment
Now, if you haven’t already figured it out yourself, then you probably know that receiving a reasonable offer for your house can be a fairly time-consuming process.
Almost 4 years ago, the average time it took to sell a house in Miami was around 65 days. Ever since then, the time has risen to almost 90 days, with 60 days just for getting the right offer for your house.
There are a lot of factors that will drastically affect your home’s sale timeline, many of which include buyer demand, jobs, market, time of the year, and most importantly, your property’s physical condition.
Get Started with Investing in Miami
The Miami real estate market has had an appreciation of 198% since the year 2000. It’s seen its ups and downs, but for the last ten years, the growth has been steadily increasing, and will do so for the next ten years as well!
GCG Real Estate has been working with multi-family and single-family residential units within Miami. Your investment as an LP (Limited Partner) is used to buy a property in one of three locations of your choosing; Detroit, Sacramento, or Miami.
One of our recent projects in the Miami housing market cost us a total of 1,900,000 USD for both acquisition and renovation. The multi-family property was then sold for 2,300,000 USD for a gross profit of 400,000 USD!
Contact us now to get started as a Limited Partner with GCG Real Estate Private Equity!