Trends & NewsMiami Real Estate Market Forecast for 2020 by Heba Baker September 26, 2019September 25, 2019 by Heba Baker September 26, 2019September 25, 2019Miami has been in the headlines recently for its emergence as a tech hub, but how’s its real estate market looking?Miami Housing Market 2020The Miami metro area boasts a population of 2,757,700 and a gross product of over $140 billion. This is clearly an active city. But if you really want to understand how the Miami real estate market is going to perform in 2020, we need to break down a few trends. The most accurate housing market predictions for the Miami real estate market will come from analyzing current trends.Using Mashvisor’s investment property calculator, we’ll first give you a quick summary of how rental properties perform in the Miami real estate market.Median Property Price: $532,647Price per Square Foot: $318Average Days on Market: 175Monthly Traditional Rental Income: $2,317Traditional Cash on Cash Return: 1.2%Monthly Airbnb Rental Income: $3,590Airbnb Cash on Cash Return: 3.5%Airbnb Occupancy Rate: 57%A Few Miami Areas Stand OutBased on a Miami Herald Real Estate Survey, we can say the following:Brickell is the hottest neighborhood in the Miami-Dade area for renters (Downtown Miami follows). Rental demand was so high in the downtown area of the Miami real estate market that there has been an addition of 6,300 new rental apartments there since 2014. By the end of 2019, there should be a total of 1,056 units added. Come 2022, this area in the Miami housing market is projected to gain another 4,062 rental units. The fact that future construction is in the books for this area projects that rental demand there will remain high.On the more affordable side of the spectrum comes Kendall- the hottest area for buyers. It’s a good family-oriented neighborhood that doesn’t break the bank for property owners in the Miami housing market. It’s surging in popularity among first-time buyers.The Miami housing market forecast includes North Miami as the fastest-growing city in the market, and it’s definitely a location Miami real estate investors should keep their eyes on. This area has very attractive price points and is located in close proximity to the beach and big shopping center. North Miami real estate has already increased in value by 7.4 percent. This under-valued neighborhood is getting more attractive with time.Miami Home Value Growth Is Slowing DownThe Florida real estate market as a whole has witnessed growth in sales, prices, and transaction volume. But Miami has some of the highest home prices. According to Zillow, the median home value in the Miami real estate market is $336,300. But the Miami real estate market trends for 2020 project a cooldown. After years of growth, it seems quite clear the city is settling in a soft buyer’s market. Only 18 percent of respondents to the survey mentioned above predicted Miami real estate to continue appreciating in the next 12 months. 63 percent expect Miami real estate market values to remain flat.Related: 3 Florida Housing Market Predictions for 2020The Condo Market in Miami Is in High DemandYou’ll probably notice a lot of condo listings when searching through Miami houses for sale. The condo market in Miami is a big one. While this sector of the real estate market did experience a serious cooldown in 2014 and 2015 (mainly due to the US dollar strengthening), buyer demand in the condo market has been notably strong up to this point. This is for a number of reasons. Favorable tax laws, SALT tax state rules motivating a move to South Florida, and lower prices are just a couple. As condo prices become more attractive, buyer demand accelerates. There’s a large inventory to choose from. Investors are recommended to search for property now, as the Miami real estate market is expected to pick back up in 2020.Related: 10 Questions to Ask When Buying a Condo to Rent OutThe Short Term Rental Market Is Profitable But Comes with Strict RegulationsMiami is a major business center and draws people in as it’s known for its culture, entertainment, the arts and international trade. Miami is a frequently visited city, whether it be for business or vacation. This makes it a prime market for short-term rental investment. Last year, about 954,000 people visited Miami-Dade County using Airbnb, which made it the app’s hottest location in Florida. But before you jump on the wagon and invest in Miami real estate with the intention of running a vacation rental property, you need to consider Miami Airbnb regulations. Is Airbnb legal in Miami? Yes, but there are a lot of rules. Airbnb Miami lands on the stricter side of regulation, but here’s a quick summary of the steps you need to take for legal operation:Obtain Florida state DBPR license (dwelling or condominium).Register with the Florida Department of Revenue.Obtain a Miami-Dade Certificate of Use.Check if your rental property is in a permissible transect zone in Miami.Get a Certificate of Use if in the City of Miami.Obtain a Business Tax Receipt from the City of Miami.The biggest issue with Miami vacation rentals is zoning. For example, non-owner occupied short term rental properties located in Estate or Low-Density Residential zones are illegal. The property owners of Miami investment properties in these zoning districts need to reside in these properties for at least more than 6 months in a calendar year.Related: Top 3 Cities in the US with Strict Airbnb RegulationsBest Miami Neighborhoods 2020We have neighborhood-level data for better projections of rental property performance in the Miami real estate market. We’ll list the top-performing neighborhoods for traditional rentals. If you’d like access to our data on Airbnb rental property performance in the Miami real estate market, sign up for our services.Search for your 2020 Miami real estate investment in these neighborhoods:Liberty CityMedian Property Price: $247,241Price per Square Foot: $173Average Days on Market: 140Monthly Traditional Rental Income: $1,577Traditional Cash on Cash Return: 3.2%North BayfrontMedian Property Price: $418,463Price per Square Foot: $229Average Days on Market: 138Monthly Traditional Rental Income: $2,184Traditional Cash on Cash Return: 2.8%OvertownMedian Property Price: $394,500Price per Square Foot: $258Average Days on Market: 231Monthly Traditional Rental Income: $2,215Traditional Cash on Cash Return: 2.7%Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties in the Miami real estate market that match your criteria in a matter of minutes! I highly recommend you try out the search tool. There are many active listings of Miami investment properties with impressive return rates (above 15 percent) which will ensure you’re making money in 2020! Start Your Investment Property Search! START FREE TRIAL Buyers MarketCondoMiami FLNeighborhood 0FacebookTwitterGoogle +PinterestLinkedin Heba BakerHeba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post Improve Your Real Estate Website with 7 Local SEO Tips Next Post The Best Real Estate Investment Software of 2020 Related Posts Florida Real Estate Market Trends of 2019: What to Expect How Realtor Commissions Are Changing: MLS Dominance and Its Problems What Will 2020 Look Like for Airbnb Real Estate Investing? How does the future of real estate investing look like? 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