The Florida real estate market has had nothing short of a successful year in 2018. It remained one of the top real estate markets in the US, and many of its cities were among the best in the country. One of the Sunshine State’s brightest markets is the Miami real estate market.
How is Miami expected to perform come January 1st and beyond? That’s what this blog is all about! Here is Miami’s housing market forecast for 2019.
Related: The 4 Best Places to Invest in Real Estate in Florida
Miami Real Estate Market Forecast: Overall Market
As a whole, the Miami real estate market is projected to be among the top markets in the country. According to a PwC report about 2019 real estate market trends, Miami ranks 12th in the nation when it comes to overall real estate prospects. The city ranks as the third top market in the entire Florida real estate market. Investor demand will also be high in Miami, incentivizing many to invest in Miami real estate.
The Miami housing market forecast shows the market will continue to thrive upon some of its established trends. For example, foreign investors will continue to invest in Miami real estate in 2019. Miami investment property prices are also expected to continue increasing. Over the last year, property values have increased by 4.6%. The 2019 housing market forecast, however, expects this increase to slow down to 3.6%.
The Miami real estate market is likely to be a buyer’s market in 2019. The issue of short supply, however, is projected to remain, though it is improving. Condos with property prices ranging from $200,000 to $300,000, for instance, are on the decline. The good news, however, is that redevelopment prospects in the Miami real estate market are ranked (in the PwC report) as some of the best.
Overall, the Miami housing market 2019 is anticipated to be bright. So, what is the Miami real estate market forecast for Airbnb and residential real estate? Why should you invest in Miami real estate with these strategies?
Miami Real Estate Market Forecast: Traditional
The residential real estate market of Miami is superb for multiple reasons, but the core one relates to its strong job market. The city has the 12th largest GDP in the entire country and is at the forefront of Florida economies. The traditional housing market forecast shows continued success as a result of Miami’s flourishing economy.
Miami real estate investors should definitely consider buying an investment property for traditional renting due to its high demand. About 70% of the city’s residents reside in rental properties. The issue for tenants, however, is affordability. According to the Miami Herald, more than half of Miami families spend more than 30% of their income on rent. So if you purchase and rent out a Miami investment property in an area with more affordable rates, you can gain a competitive edge.
Related: What Is the Best Type of Miami Investment Property?
Miami Real Estate Market Forecast: Airbnb
What is the housing market forecast for Airbnb Miami? Just like with traditional investments, Airbnb Miami is estimated to be among the best in the US. In 2018, it was the best market in all of Florida real estate. Airbnb investors in the city generated a total of over $134 million the year prior. This isn’t surprising given Miami’s status as a world-class tourist destination. Airbnb is also fully legal in the Miami real estate market. Overall, the Miami housing market forecast shows that buying an investment property for Airbnb will remain an excellent strategy in 2019.
Best Neighborhoods in the Miami Housing Market
What are the best neighborhoods in Miami for real estate investing? According to Mashvisor’s investment property calculator, they are Allapattah, Liberty City, and Shenandoah.
Related: Mashvisor: The Best Rental Property Calculator You Could Ask For
Allapattah
- Median Property Price: $300,487
- Price Per Square Foot: $208
Traditional
- Rental Income: $1,556
- Cap Rate / Cash on Cash Return: 2%
Airbnb
- Rental Income: $2,772
- Cap Rate / Cash on Cash Return: 5%
- Airbnb Occupancy Rate: 52%
Allapattah is arguably the best place to buy real estate in the Miami market. The neighborhood is lucrative for both a traditional and Airbnb Miami investment property. Its property prices are also among the most affordable in the city. Allapattah is definitely a neighborhood you should keep in mind for a Miami real estate investment in 2019.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Liberty City
- Median Property Price: $243,943
- Price Per Square Foot: $182
Traditional
- Rental Income: $1,465
- Cap Rate / Cash on Cash Return: 3%
Airbnb
- Rental Income: $1,937
- Cap Rate / Cash on Cash Return: 4%
- Airbnb Occupancy Rate: 42%
When it comes to the most affordable neighborhoods in Miami, however, Liberty City takes the cake. Its average rental income and return on investment (for both traditional and Airbnb) are also among the city’s best. Just like the overall Miami real estate market forecast, Liberty City is heading in the right direction.
Shenandoah
- Median Property Price: $619,938
- Price Per Square Foot: $292
Traditional
- Rental Income: $2,271
- Cap Rate / Cash on Cash Return: 2%
Airbnb
- Rental Income: $3,482
- Cap Rate / Cash on Cash Return: 3%
- Airbnb Occupancy Rate: 53%
One of Miami’s oldest neighborhoods is also one of the most profitable. Although it has high property prices, Shenandoah has some of the highest rental income averages in all of Miami. This will be enough to motivate investors to purchase property in the neighborhood in 2019.
The Miami real estate market forecast projects the city will be among the top markets in the US. Buying an investment property here will be a profitable move in 2019. So start looking for a Miami investment property today. Click here to start your 14-day free trial to find and analyze the best investment properties anywhere in the US.