Miami Real Estate Market Analysis

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Miami Real Estate Market Performance

Illustration CityMiami, FL
Homes For Sale
2,235
Average Rental Income
$2,790
Traditional
$2,893
Airbnb
Investment Properties
11,068
Traditional
4,620
Airbnb
Occupancy Rate
93%
Traditional
45%
Airbnb
data trendsOptimal Strategy
Traditional
logoDiscover Miami

The City of Miami, which spans over 56 miles, is a coastal metropolis located in Southeastern Florida. It is part of the Miami-Dade County and has a population of 483,395 in 2022. It is the second most populous city in the Sunshine State and the 41st biggest city in the United States. Miami’s population has increased by 21% since 2010. This population growth has a positive impact on the Miami real estate market.

According to Neighborhood Scout, 71% of Miami’s residents are renters. As per Mashvisor’s data as of March 2022, Miami has a high price to rent ratio of 23. This shows that the Miami rental market has a lot of profitable opportunities in store for real estate investors. Additionally, during the pandemic, many people from high-tax cities like New York are moving to South Florida. The increase in migration from the north accelerates the economic growth in Miami, which also triggers a continuously increasing demand for Miami rental properties.

Miami is one of the top tourist destinations in the United States. It is known for its warm climate, beautiful white-sand beaches, and popular tourist attractions. Its tourism industry continues to thrive, which is one of the factors that keep Miami real estate hot, even while the world is just slowly recovering from the pandemic.

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infographic
Sources: MiamiToDayNews, NeighborhoodScout, WorldPopulationReview
39%
Mashmeter
Dynamic market opportunity score
Cash on Cash Return
2.24%
Traditional
1.19%
Airbnb
Cap Rate
2.54%
Traditional
1.85%
Airbnb
Median Property Price$586,500Average Price/Sq.Ft.$635Average Days on Market99Price to Rent Ratio21Market State

Seller’s market

Homes for Sale in Miami

Find Properties
$480,000
MLS A11222799
17713 SW 150th Ct #17713
Miami, FL 33187
South-West Coconut Grove
Townhouse
4 beds4 baths1,948 sq.ft.
CAP RATE
Trad. 3.85%Airbnb 7.96%
$285,000
MLS A11200147
14211 N Kendall Dr #409E
Miami, FL 33186
South-West Coconut Grove
Condo/Coop
3 beds2 baths1,209 sq.ft.
CAP RATE
Trad. 5.49%Airbnb 7.94%
$514,999
MLS A11197647
22837 SW 89th Path #22837
Miami, FL 33190
South-West Coconut Grove
Townhouse
4 beds3 baths2,201 sq.ft.
CAP RATE
Trad. 4.08%Airbnb 7.92%
$255,000
MLS A11117888
14165 SW 87th St #407
Miami, FL 33183
South-West Coconut Grove
Condo/Coop
3 beds2 baths1,328 sq.ft.
CAP RATE
Trad. 5.14%Airbnb 7.86%

Miami Homes for Sale

Homes for Sale
2,235

The Miami real estate market remains hot in 2022. The demand for housing continues to rise and home prices keep soaring. Thus, this year is the perfect time for real estate investors to invest in Miami real estate. Many residents who cannot find a property that they can afford to buy are forced to rent instead, keeping a strong demand for Miami traditional rental properties. Moreover, the thriving economy and flourishing tourism industry will also open many doors of opportunities for vacation rental investors.

Based on Mashvisor’s data as of March 2022, there are currently around 2,221 available properties for sale in Miami. Prices of Miami investment properties range from $120,000 to $5 million. You can find different types of residential properties, such as condos, single-family homes, townhouses, and multi-family homes. You can also find newly built homes, foreclosures, and off market properties. Because there is a high demand for both long-term and short-term rentals in Miami, investors can use their income properties either for traditional rentals or Airbnb.

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Best Neighborhoods in Miami for Buying Investment Property

The Miami real estate market has roughly 40 neighborhoods. To know which neighborhoods are best for traditional rentals, it’s important to check if the area is near businesses and companies where people go to work. Working renters prefer to stay in a place that’s close to where they work. The best neighborhoods for vacation rentals are those that are close to tourist attractions, basic amenities, and public transport.

To pick the right area that’s best suited for your chosen rental strategy, it’s essential to analyze the comparable properties in the same location, known as real estate comps. Calculate the potential rental income of a property based on your preferred strategy, including its cash flow, cap rate, and cash on cash return. Fortunately, Mashvisor’s Neighborhood Analytics has this information ready for you. You can also use Mashvisor’s rental property calculator to compute your possible returns. Mashvisor also recommends which strategy is best in a particular neighborhood.

Neighborhood Analysis in the Miami Real Estate Market

Allapattah
Miami, FL
75%
Mashmeter
property price
545000
Median
cap rate
3.76%
Traditional
5.81%
Airbnb
rental income
$1,707
Traditional
$2,639
Airbnb
homes for sale
1
occupancy rate
48%
Airbnb
Auburndale
Miami, FL
64%
Mashmeter
property price
662500
Median
cap rate
3.71%
Traditional
5.44%
Airbnb
rental income
$2,046
Traditional
$3,002
Airbnb
homes for sale
12
occupancy rate
50%
Airbnb
Flagami
Miami, FL
60%
Mashmeter
property price
336250
Median
cap rate
7.34%
Traditional
10.22%
Airbnb
rental income
$2,058
Traditional
$2,865
Airbnb
homes for sale
1
occupancy rate
47%
Airbnb
Liberty City
Miami, FL
56%
Mashmeter
property price
520000
Median
cap rate
3.96%
Traditional
5.33%
Airbnb
rental income
$1,716
Traditional
$2,311
Airbnb
homes for sale
1
occupancy rate
44%
Airbnb
North Bayfront
Miami, FL
53%
Mashmeter
property price
212500
Median
cap rate
13.08%
Traditional
17.40%
Airbnb
rental income
$2,316
Traditional
$3,080
Airbnb
homes for sale
1
occupancy rate
44%
Airbnb

Miami Rent Prices

RENTAL STRATEGY STUDIOS 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS
Airbnb$1,836$1,932$2,653$4,104$6,316
Traditional$1,395$1,720$2,389$3,489$5,043

Miami Property Trends

trends

The City of Miami is home to over 483,000 people in early 2022 - this is around 2.2% higher than in 2020. Miami’s population is currently growing at a rate of 1.1% per year, and it has seen a 21% increase since 2010. One of the reasons for Miami’s population growth is the number of people moving to the city - which also boosts the Miami real estate market.

The migration has started since the pandemic, when a lot of people are allowed to work from home. People move to Miami because of its nicer weather conditions, lower cost of living, and favorable tax rates. The increase in population spikes the demand for both Miami housing and traditional rental properties.

Short-term rental investors are also expected to see an increased demand for vacation rentals this year. Since the COVID restrictions are now being lifted gradually, Florida has opened its doors to tourists from all over the country and around the world. In 2019, Greater Miami attracted a total of 24.2 million visitors. We can expect around the same number of Miami visitors (or even more) this year, boosting the Miami Airbnb market.

Miami Real Estate Appreciation and Property Values

The Miami housing market continues to appreciate year after year. The property values in Miami City have appreciated by 246% since 2000, with an average annual rate of 5.9%. With the increased demand for housing, we can expect these figures to continue their upward trend. According to Mashvisor’s data, the median property price in Miami as of March 2022 is $953,470, with an average price per square foot of $643.

While the property prices are a bit high, buying a Miami income property will make for a profitable investment. However, there is currently a shortage of housing inventory available, making the Miami real estate market a hot seller’s market. The demand from both homebuyers and real estate investors, as well as the increase in population, are the key factors that keep Miami real estate soaring.

Miami Homes for Sale Below Median Price

Find Properties
$480,000
MLS A11222799
17713 SW 150th Ct #17713
Miami, FL 33187
South-West Coconut Grove
Townhouse
4 beds4 baths1,948 sq.ft.
CAP RATE
Trad. 3.85%Airbnb 7.96%
$285,000
MLS A11200147
14211 N Kendall Dr #409E
Miami, FL 33186
South-West Coconut Grove
Condo/Coop
3 beds2 baths1,209 sq.ft.
CAP RATE
Trad. 5.49%Airbnb 7.94%
$514,999
MLS A11197647
22837 SW 89th Path #22837
Miami, FL 33190
South-West Coconut Grove
Townhouse
4 beds3 baths2,201 sq.ft.
CAP RATE
Trad. 4.08%Airbnb 7.92%
$255,000
MLS A11117888
14165 SW 87th St #407
Miami, FL 33183
South-West Coconut Grove
Condo/Coop
3 beds2 baths1,328 sq.ft.
CAP RATE
Trad. 5.14%Airbnb 7.86%

Airbnb Calculator for Investment Properties in Miami

If you’re planning to invest in the Airbnb Miami real estate market, it’s crucial to choose the right location that can attract guests. However, location is not the only factor that can ensure a good return on investment on your Airbnb rental. It’s equally important to analyze and understand the profit potential of a particular Miami income property before you buy it.

Thankfully, you can do this efficiently and accurately using Mashvisor’s Airbnb profit calculator. Mashvisor’s Airbnb calculator can help you compute key Airbnb metrics, including cash flow, cash on cash return, and Airbnb cap rate. Mashvisor helps Airbnb investors make a profitable Miami real estate investment.

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Miami Airbnb Occupancy Rate

The Airbnb occupancy rate is one of the most essential factors that you need to consider when choosing an investment property in the Miami real estate market. Occupancy rate is the ratio of days in a month that a vacation rental is booked to the number of days in a month it is listed for rent. A high occupancy rate means your rental property generates more income because it is seldom vacant.

According to Mashvisor’s data, short-term rentals in Miami have an average of 58% Airbnb occupancy rate as of March 2022. The Miami Airbnb properties generate a 2.31% cash on cash return and 2.35% cap rate. To generate sufficient revenue, you have to make up for the missed income while your property is vacant by charging the right Airbnb daily rate. Pricing your Airbnb rentals correctly can help generate enough profit despite having vacant days.

Mashvisor’s Airbnb estimator helps real estate investors estimate the Airbnb occupancy rate of a particular investment property based on neighborhood comps. Mashvisor also helps investors decide the best Airbnb daily rate based on trends and seasonality. Mashvisor’s data comes directly from active Airbnb listings. Moreover, active Airbnb hosts verify our calculations to ensure accuracy.

Airbnb Occupancy Rate Calculator
Miami Airbnb Occupancy Rate by Number of Bedrooms

Top Miami Airbnb Properties

Find Properties
$156 per night
$170 per night
$75 per night
Entire home/apt · 2 beds
Few blocks from Miami Airport!
904
$77 per night
Entire home/apt · 2 beds
Close to everything!
788

Miami Airbnb Investment Analysis

Miami is one of the most favorite tourist destinations in the country. Visitors come to Miami to enjoy its scenic views, beautiful beaches, and other world-class attractions. Many people are getting vaccinated against COVID-19 and travel becomes easier, resulting in a boost in Miami’s tourism industry. The improvement in tourism has a positive impact on the overall economy of Miami, as well as the Miami real estate market.

Because Miami is a popular destination among tourists, there is currently a high number of short-term rental listings available. As per Mashvisor’s data analytics, there are 2,857 active Airbnb properties in the area as of March 2022. The average monthly Airbnb rental income is at $4,541, with a cash on cash return of 2.31% and an Airbnb cap rate of 2.35%.

Despite the high number of available Airbnb properties in Miami, there are still many opportunities for real estate investors looking to buy a Miami investment property for short-term rental. Miami expects over 23 billion tourists per year - and with Miami’s warm weather, you can expect visitors to flock to the city all year long. To make sure that you’re investing in a profitable Airbnb, you have to understand a property’s profit potential. Mashvisor can help you find the best Miami properties for Airbnb rentals.

Airbnb Growth and Regulations in the Miami Real Estate Market

trends

There is no doubt that Miami has a prosperous tourism industry, and because of this, the Miami Airbnb market has seen significant growth over the years. Since 2018, the Miami short-term rentals experienced around 8% quarterly growth. As of March 2022 Mashvisor data, the Airbnb market in Miami has an average occupancy rate of 58%.

Short-term rentals are legal in the city of Miami as long as they are licensed by the State of Florida and registered with the Florida Department of Revenue. Short-term rental owners who rent for six months or less should also register for a Tourist Tax Account. Before you list any vacation rental property on any platform, you are required to obtain a Certificate of Use (CU). The CU must be displayed in the vacation rental property and should be clearly visible to guests. You should include the name, address, and phone number of the contact person, as well as the maximum occupancy allowed.

The maximum overnight occupancy for Airbnb rentals is two persons per bedroom, plus two additional persons per property, up to a maximum of 12 persons. Children under three years old are excluded. For example, if your vacation rental home has four bedrooms, the total maximum occupancy is 10 persons. If your investment property has six bedrooms, you can only rent up to a maximum of 12 persons at a time.

The owner of the property or the responsible party must reside for more than six months per calendar year in a Miami Airbnb property. You can rent the vacation property while the responsible party is residing there. This regulation only applies to properties designated as Estate or Low Density Residential on the CDMP Land Use Plan Map. If the short-term rental has a swimming pool, you must display at least one of the pool safety features listed in Section 515.27 of the Florida Statutes before you rent out the property. This provision is not applicable to a vacation rental with a community swimming pool, like a condominium.

Before you buy any Miami real estate investment property, it’s important to check the Airbnb rules and regulations in that particular Miami neighborhood. This is to ensure that you don’t break any rule to avoid penalties so you can maximize your profits.

Miami Rental Properties and Rent Prices

Miami Property Analysis
Rental income
$2,790
Traditional
$2,893
Airbnb
Price To Rent Ratio
21
Cash on Cash Return
2.24%
Traditional
1.19%
Airbnb
Cap Rate
2.54%
Traditional
1.85%
Airbnb
Occupancy Rate
93%
Traditional
45%
Airbnb

The steady population growth and strong tourism industry are two of the reasons why it’s wise to invest in the Miami rental market. As of March 2022, the average monthly traditional rental income in Miami is $3,477, while the average monthly Airbnb rental income is $4,541.

Since many Americans migrate to South Florida due to its warmer climate and favorable tax rates, we can expect that Miami rent prices will keep appreciating. An article from CBSlocal.com states that the Miami area saw a high appreciation rate in rent prices, which increased by 52.4% from January 2021 to January 2022.

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Traditional Rental Properties in Miami

trends

With the current price to rent ratio of 23, about 71% of houses in Miami are occupied by renters. The current average rent for a single-bedroom apartment in the city of Miami is $2,500, which is a 56% increase from 2021. From last month’s Miami real estate market data, the average rent for a studio unit rose by 6%, while the rent for a single-bedroom apartment increased by 4%. There is an 8% increase for the average rent for a two-bedroom apartment.

The traditional cap rate in Miami is currently at 1.79%, while the traditional cash on cash return is at 1.76%. If you are planning to buy a Miami income property, it’s important to consider the price of the property against your potential profit. According to Mashvisor, there are currently 11,188 traditional rental listings in Miami, FL, with an average monthly rental income of $3,477. The number of traditional rentals available is quite low compared to Miami’s population, which is the reason why the demand for rentals keeps the rental prices high.

Miami Homes for Rent

Find Properties
$3,200
MLS A11224198
1030 NW 48th St
Miami, FL 33127
Liberty City
Apartment
3 beds2 baths1,393 sq.ft.
$2,300
MLS A11225626
21255 NE 8th Ct #5
Miami, FL 33179
North Bayfront
Townhouse
2 beds3 baths1,040 sq.ft.
$2,050
MLS A11226099
1151 SW 105th Ave #404
Miami, FL 33174
Flagami
Apartment
2 beds3 baths1,045 sq.ft.
$3,000
MLS A11225347
8635 NW 8th St #211
Miami, FL 33126
Flagami
Apartment
3 beds2 baths1,099 sq.ft.

Miami Transportation

77 / 100
Very Walkable
57 / 100
Good Transit
64 / 100
Bikeable

If you want to invest in the Miami real estate market, it’s crucial to find out the walk, transit, and bike scores of your chosen neighborhood as this can affect your occupancy rate. Miami has an average Walk Score of 60, which shows that it is fairly walkable.


According to the Miami Guide, it is possible for Miami residents to live without a car. Most Miami citizens use public transit to get to and from work, and most people in Miami ride the bus. Residents can also navigate Miami City through one of the largest mass transit systems in Florida, including Miami's Metrorail, Downtown Metromover, Paratransit, and Metrobus systems.

Amenities in the Miami Real Estate Market

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37 Educational Facilities

Educational Facilities in Miami

The Miami-Dade School District, one of the US largest school districts, oversees the system of education in Miami. The City of Miami has a total of 213 public elementary, middle, and high schools, and 570 private schools. 116 high schools made it to the list of U.S. News & World Report's Best High Schools. Further, Miami has 17 colleges and universities, two of which are also recognized by the U.S. News & World Report.

Top Schools

  • School for Advanced Studies (SAS)
  • Archimedean Upper Conservatory Charter School
  • Design and Architecture Senior High



Top Colleges and Universities

  • Abizu University
  • Florida International University
  • Florida Memorial University
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20 Banks

Banks in Miami

Banking is a necessity for both residents and tourists. If you are planning to invest in the Miami real estate market, it’s important to make sure that there are enough banks and credit unions available within your chosen neighborhood.

Top Banks and Credit Unions

  • First National Bank of South Miami
  • Wells Fargo Bank
  • Capital One Cafe
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21 Healthcare Facilities

Healthcare Facilities Miami

One of the biggest indicators that a place is a good location for real estate investment is its access to healthcare facilities. There are 16 healthcare facilities in Miami, including the Baptist Health Baptist Hospital and the University of Miami Hospital.

Top Healthcare Facilities

  • Miami Medical Center
  • Mercy Hospital
  • South Miami Hospital

Start your investment property search

Use analytics to find lucrative traditional or Airbnb properties in a matter of minutes.

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Additional Resources on the Miami Real Estate Market

Real Estate Market Analysis for Investment