Miami's Real Estate Heats Up, Could a Thunderstorm Be Far Off?

Despite all odds, “Miami’s roller coaster real estate market is booming again” reports Nadja Brandt. Is "the hottest [residential] real estate market in the U.S." primed to boil over?

November 22, 2012, 11:00 AM PST

By Erica Gutiérrez


“Everybody thought Miami was finished, and now it has become again one of the top locations for developers for multi-family rentals,” said Robert Kaplan, principal at Ackman-Ziff Real Estate.

With rents on the rise, thousands of units poised to come onto the market over the next several years, and investors seeing the potential for positive returns on their investments, Miami's residential real estate market is "defying all previous predictions" and outracing most other cities in America.

So, why is Miami’s market making such a rapid recovery after being one of the hardest hit by the housing crisis? A combination of factors are contributing to this phenomenon, starting with steady population growth, up 2.1 percent in 2011, its largest increase in a decade. Robert Cruz, chief economist at the Economic Development & International Trade department of the Miami Dade County government, says the continued influx of foreigners, including Hispanic immigrants, has contributed to this growth. Furthermore, according to the U.S. Department of Labor, its economy is diversified and unemployment has fallen by nearly 2 percent in the past year to 8.9 percent.

Most importantly, these workers are adding to the rental demand. Developers are confident that the new rentals will compete with Miami’s 'shadow inventory' of condos, and are looking to lure in renters who are otherwise priced out of the expensive, luxury sector in Miami’s core, but who are still looking to pay “for professionally run and managed apartment complexes” says Michael Adler, CEO of Adler Group. Moreover, though developers are building rentals now, capitalizing on the availability of financing for multi-family, the possibility to convert to condos, particularly along waterfront real estate, is still an underlying motive. For developers like Ezra Katz, CEO of the Aztec Group, this may be especially true. “You can squeeze only so much out of a renter, then you cross the line into ownership,” he said.

Monday, November 19, 2012 in Business Week

Chicago Commute

Planning for Congestion Relief

The third and final installment of Planetizen's examination of the role of the planning profession in both perpetuating and solving traffic congestion.

May 12, 2022 - James Brasuell

Twin Cities

Minneapolis Housing Plan a Success—Not for the Reason You Think

Housing advocates praise the city’s move to eliminate single-family zoning by legalizing triplexes on single-family lots, but that isn’t why housing construction is growing.

May 13, 2022 - Reason

Single-Family Housing Construction

New White House Housing Initiative Includes Zoning Reform Incentives

The Biden administration this morning released a new program of actions intended to spur housing construction around the United States.

May 16, 2022 - The White House

University of Arizona

Proposed Transit Line Would Connect Downtown Tucson to Airport

Based on community input for a 15-mile transit line, residents want to see a focus on affordable housing development and anti-displacement measures.

4 hours ago - KGUN

Shuttered strip mall in Niland, California

Strip Malls as a Housing Solution

The American strip mall may be a dying breed of commercial development, but could the buildings serve a new use as sustainable housing?

6 hours ago - Yale Environment 360

Complete Street Vancouver

Study: Most of Vancouver Is a ‘15-Minute City’

A large majority of Vancouver residents can access a grocery store in 15 minutes or less by bicycle or on foot.

May 20 - Vancouver Sun

HUD’s 2022 Innovative Housing Showcase

HUD's Office of Policy Development and Research

Expanding HUD’s Eviction Protection Grant Program

HUD's Office of Policy Development and Research

New Updates on The Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Hand Drawing Master Plans

This course aims to provide an introduction into Urban Design Sketching focused on how to hand draw master plans using a mix of colored markers.