With an abundance of warm weather, sunny beaches, wonderful food, and beautiful people, Miami is one of the world’s most desirable destinations for both living and investing. Its vibrant atmosphere, diverse culture, and thriving economy make it an attractive choice for individuals seeking an exceptional lifestyle and lucrative opportunities.
If Will Smith’s 1998 summer hit did not do the trick, maybe our article will convince you. Check out the seven most convincing reasons why investing in The Magic City’s real estate is a good idea.
1. It Is Exploding With Tourists
Living among tourists translates to fine dining and partying every day, meeting wonderful people from all over, and simply enjoying the blessings of a summertime destination all year round. However, for those with a more pragmatic point of view, a huge number of tourists also means an opportunity to earn more and quicker.
According to the latest official information, more than 26.5 million tourists visited Miami in 2022, making it one of the hottest tourist hotspots in the USA and in the world.
This means that finding renters in Miami won’t be the problem, but rather, fighting the urge to keep the property for yourself to live in.
2. Rent Prices In Miami Are High
While Orlando and Tampa have been gaining popularity among real estate investors for the past few years, investing in Miami will always be an excellent choice, particularly when buying for rent.
The median rent price in Miami is currently $1,959, more than 43% higher than the US average of $1,369. In addition, Florida has some of the least strict rental laws in the country, allowing investors to raise their rent prices as much as they want every year. There are also no restrictions on how large security deposits they can collect, making Miami’s state laws more favorable towards real estate investors than other states like California.
3. More Than Two-Thirds Of Miami Residents Are Renters
A recent study revealed that Miami’s share of renters accounts for 68% of the city’s population. Such a ratio of renters vs homeowners is the third highest in the entire USA.
What’s more, RentCafe touted Miami as the number one most competitive rental market for 2022, with an amazing 75% lease renewal rate. The report also revealed that 97.5% of the apartments are already occupied, which resulted in an average of 32 prospective renters competing for a single rental.
As if that doesn’t scream demand loudly enough, the stats also show that more and more people are moving into Florida.
4. Florida’s Population Is The Fastest Growing In The US For 2022
Census Bureau’s latest statistics reveal that Florida’s population grew by 1.9% between 2021 and 2022, making The Sunshine State the fastest growing in the country for the first time since 1957. Historical data suggests that Florida’s population has been steadily increasing since 1946, and there is no reason to believe that the growth will stop any time soon.
Granted, Miami is not among the fastest-growing cities in the state, but the city still experienced a residential surge of 44,473 in the ten years leading up to 2022. However, with new ambitious development projects like St Regis Sunny Isles adding to Miami’s coastline, it is safe to expect that the influx of new residents in the Miami area will boom in the next decade.
5. No State Income Tax
Taxes are a massive factor to consider when thinking about any investment, and Florida’s favorable tax environment has always been turning the attention of real estate investors.
Coupled with the great rentability of Miami properties, the lack of state income tax means that investors can keep more of their profits earned through rent.
6. Properties Are Appreciating In Miami
Finally, when buying in Miami, regardless of if you are looking to move, or rent out, your property will appreciate. The city’s unique combination of luxury properties, waterfront views, and desirable lifestyle has contributed to a steady appreciation trend for years.
According to Zillow, the average Miami home value is currently $557,679, 7.7% higher than a year before. Moreover, the data suggests that the property value in Miami has been increasing year after year, since the earliest data point in 2015.
7. Because It Is Miami
After reviewing all the data and analytical reasons why investing in Miami can be a wise decision, we return to the most obvious and most convincing reason of all.
It is Miami, one of the most beautiful places on earth. Filled with diverse culture, wonderful landmarks and attractions, and a vibrant atmosphere, Miami offers a lifestyle that is unmatched.
Although renowned for its beaches, Miami has to offer so much more besides the sun and the ocean. It is a dynamic city with stunning architecture and a vibrant art scene. It is the home to some of the greatest sports teams in the world (and let’s not forget Messi’s arrival) and has something to offer to people of all ages and ways of life.
Ultimately, while investing in Miami provides you with lucrative opportunities, moving into Miami and making it your home can be the best decision you have ever made.
