Miami: becoming America’s number 1

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Miami: becoming America’s number 1

Miami – famed for its distasteful bling, its reputation as a safe haven for the world’s drug lords, and a its scorching heat. But the city’s booming real estate market is something of a novelty.

In 12 months from July 2020, more Americans moved to Florida than any other state, 220,890 of them to be exact – and Miami was the main draw.

If you analyse the temperature gradient maps of the continental US, it’s not hard to see why Miami and South Florida’s real estate market is experiencing an unprecedented explosion. In some respects, it would be easy to see Miami’s real estate boom as largely circumstantial – the warm climate, stunning beaches and surplus of space is the ideal space to shelter from a global pandemic.

However, the city’s real estate resurgence has all the hallmarks of a boom that’s here to stay, whilst America’s other major metropolises like Manhattan and San Francisco struggle with a long-term re-pricing in the other direction.

Trends that were already evident pre-COVID have been accelerated by the pandemic. Most out-of-town buyers were already moving to South Florida from high housing cost, high tax, high density states like New York, Connecticut, New Jersey, Illinois, and Massachusetts seeking a lower cost of living, better weather, and a healthier quality of life. Now they’re just coming like a tsunami for the long-term.

Miami’s real estate data is hard to ignore, no matter how cynical we are about the Monaco-esque 1% vortex that the city is rapidly becoming. It’s not just a migration of people, but a migration of money.

Foreign investment firms like  Hamburg-based fund Union are increasingly tapping into the regions PRS markets. Yet it’s not just real estate investors.

Tech firms like Spotify, Blocktower Capital and Uber have set up shop in the city with the expectation that the city will eventually be bigger than San Francisco’s tech scene. Financial firms are also eyeing up moves – Goldman Sachs, Blackstone, Citadel, and Elliott Management as well as several venture capital firms have expressed interest at moving a majority of their workforce to the city.

As a result, people aren’t just migrating to Miami for the lifestyle, but to build a career.

All of this is great news not only for South Florida’s real estate market and developers, but also for the long-term sustainability of the region’s economy.

We look forward to seeing Miami represented at MPIM in March and can’t wait to hear more about what makes this metropolis such an attractive hub for America’s residential population and businesses alike.

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