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Developers Aren’t Building Enough New Housing To Meet Demand In Miami

Construction of new homes in the Miami area is near or below historical norms, a sign that there isn’t an overall level of overbuilding in the area.

The amount of new construction is also not enough to keep pace with the area’s rising population, which could be causing a shortage (the statistics are from 2015).

Economists from Realtors.org counted the number of new housing permits, based on U.S. Census Data.

For Miami-Dade, the new housing permit count was:

  • 2000: 12,475
  • 2005: 26,120
  • 2015: 12,617

The website considers the year 2000 to be a healthy benchmark, while 2005 was said to be a year of overbuilding nationally prior to the real estate crash.

In Broward and Palm Beach, construction permits are actually just half of what they were in 2000 as available land has dried up, causing a shortage.

Miami-Dade needs 15,289 new housing units per year to meet demand as of 2015, with a supply shortage of 2,672 units during the year based on population growth.

Broward and Palm Beach had an even worse shortage of new housing. Broward should have another 8,511 new units per year to meet demand, while Palm Beach needs 7,638 units.

The data also shows that Miami-Dade’s new buildings in 2015 were high density, with an average of 42 units per building. In Broward, the number of units per building was 31, while in Palm Beach it was 20.

 

 

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28 Comments on "Developers Aren’t Building Enough New Housing To Meet Demand In Miami"

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Anonymous
Anonymous

Clearly they are referring more to single family homes… and clearly there isn’t much space available for development of these in Miami.. unless the URB is moved… which is want they want.

suomynona
suomynona

Definitely don’t want to further encroach on the Everglades.

Anonymous
Anonymous

Nailed it.

Marc306
Marc306

Need more small developers and fine grained urbanism. More duplexes, four-plex, twelve-plex kind of buildings. The amount of cash, land, and experience required to build towers and huge podium buildings stalls growth. Units in these large buildings then require parking and are thus unaffordable.

More missing middle housing please! It’s

Anonymous
Anonymous

They should build more 1000 foot towers

Anonymous
Anonymous

They haven’t built one yet.

Where\'s The Beef?
Where\'s The Beef?

Your talking about 2015 figures. Your not comparing apples with apples. What are the 2016 and 2017 figures? Bring your information up to date. You need today’s figures.

Anonymous
Anonymous

Agree but Real Estate for the most part is lacking information due to the lack of professional players. This is why Real Estate is clycical and speculative on the supply and demand size.
An easy way to see local market conditions is current inventory levels along with wage and population growth.

Anonymous
Anonymous

Um, price per foot and sales volume (though kind of included with inventory levels) are also pretty important…and declining significantly since 2015 (solely the condo market and especially when you remove distressed sales from the equation). It’s almost like someone wants us to live in the past and believe it’s a good deal to buy all this preconstruction coming on the line…hmmm…

Ygal Benichay
Ygal Benichay

This makes entirely no sense there is currently an over supply of new condos being built. The rising population may exist however they can all afford the top dollar rental prices these high rises will demanding

Ygal Benichay
Ygal Benichay

Sorry they cannot! afford

Anonymous
Anonymous

Sorry, but facts beg to differ. Despite the massive (and growing) supply, demand’s keeping up.

Anonymous
Anonymous

Clarification: This is just rental demand, not purchase. Of course, the latter has also been hurt by a massive hit to Latin American economies.

Alejandro M&M FTL
Alejandro M&M FTL

Dummy

I.Know.Miami
I.Know.Miami

Miami demand will always keep growing. Doesn’t matter what the nay sayers think. People always want to come to Miami and live and play here. M>I>A>M>I

Anonymous
Anonymous

Demand for purchases is definitely not keeping up with supply…

suomynona
suomynona

Where are all of these people living if there are not enough homes for everyone?

Anonymous
Anonymous

abuelas house

Anonymous
Anonymous

I’m a twenty something making enough money to rent, stil living with Abuela.

Anonymous
Anonymous

Start your life, move out… have a family.

Anonymous
Anonymous

Nope going MGTOW for now.

Anonymous
Anonymous

Im sure most people would if actual affordable housing got built along with a decent public transport system—but I definitely think we need another “luxury condo tower” for Chinese and Russian oligarchs to hide their money in

Anonymous
Anonymous

Chinese and russian money? Man, people in this thread have no clue about the Miami market. No wonder people can peddle this kind of misinformation (i.e. The “study”)

Anonymous
Anonymous

Im sorry, Venezuelan and Brazilian flight capital

Anonymous
Anonymous

lol

Gringo
Gringo

as a fellow Gringo, I was always told that West Coast Fla is where you go to vacation, 2nd home etc, thats until I arrived in Miami for a cruise and stumbled into Brickell, OMG …Love it…I tell all my Gringo Friends about Miami and they think i must be scarface…all I can say is BUY BUY BUY whatever you can afford without having to much debt so you can hanh in during any market, cuz it gonna get any cheaper in the long run…

Gringo
Gringo

cuz it aint gonna get cheaper

David
David

What we need is Price Adjustment ! So many properties are way overpriced and buyers are not stupied. Buyers have access to the Zilbert website ! The numbers are all there with the dates ! When developers are offerenig 7, 8, 10 % commission to Brokers on Pre Construction goes to show how bad the situation is…Take a look on how many properties are being dumped back to the resale market…

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