Miami Is Now The Second Most Expensive Housing Market In America, & Prices Are Still Rising

Miami has now become the second most expensive residential real estate market in the U.S., according to a new study.

New residents have been flocking to Miami during the pandemic – and they are willing to pay more to live here than almost anywhere else, sending prices soaring.

Only New York is now more expensive, with Los Angeles now slightly less expensive than Miami.

A separate study shows that rent prices continue rising here at one of the fastest rates nationwide.

The first study by Realtyhop showed that Miami overtook Los Angeles for the second most expensive housing market in the U.S. last month.

The analysis compares income to housing prices for its affordability index, ranking how much of their income residents spend on housing. It uses U.S. Census data to determine income levels, so it may not account for the high level of work from home employees that have relocated here recently.

Another new report from Realtor.com revealed that rental prices in the Miami metro area were up 27% in September compared to the same period last year.

Miami’s overall average rent is now $2,432 per month, just slightly below the $2,455 in the New York metro area where prices have been dropping,

On a percentage basis, Miami ranked third for rent price growth. All of the fastest growing metro areas for rent are southern, warm weather areas.

 

(photo: Aaron Demayo)

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Robert
14 days ago

Good for the city tax base I guess. But really bad news in another way too. I do get that prices are influenced by offer and demand but this city is still made by service workers in hotels and restaurants primarily. This mean that the majority are loosing purchase power and this eventually will bring other issues. We have a primary example with San Francisco. From boom town to hell town. Let’s see where we are in a few years. I’m very excited for the possibilities but scared at the same time. Just remember that Detroit used to be one of the most amazing cities in America and now is nearly the bottom. We can be there too eventually. Specially knowing our wonderful leaders here in Dade county.

Anonymous
14 days ago

Shocking when you see or read about the actual mechanism of capitalism at work isn’t it?

Anonymous
13 days ago

???
No, not shocking to anyone who knows Capitalism.

The housing market in Miami-Dade County is not FREE MARKET Capitalism. As many of the parking pedestal pundits have highlighted…Gov’t intervention with parking requirements, Gov’t intervention with minimum unit sizes, Gov’t intervention with zoning laws that prohibit renting in-laws quarters/guest houses, etc. will artificially inflate housing costs, this hurts the working poor more than anyone.

Anonymous
13 days ago

“The housing market in Miami-Dade County is not FREE MARKET Capitalism”

It’s not? Are you free to buy and sell your house?

Anonymous
13 days ago

I cannot develop a 12 unit apartment building on most lots in Little Havana. When Government bureaucrats decide that the lot can only have 6 units, and the units MUST have a parking place, and apartment MUST have at least 700 ft. Even though the Free Market is screaming for affordable housing. Even though televisions and “stereos” are no longer furniture on the floor, and some people do not want cars or parking spaces.

Government bureaucrats impede the FREE MARKET in this case even if the property is the same size, same height, and looks similar to all the other properties in Little Havana.

See the point?

I cannot rent out my guest house to a different family in Coral Gables, because government bureaucrats say so. Even though the FREE MARKET is demanding affordable housing.

There is a horrendous amount of Gov’t regulation on housing in Miami-Dade. This undue regulation prevents me and developers from building the necessary housing stock that allow for housing affordability.

For politicians, and the non-profit organizers who love them, the money is in the “treatment” of unaffordable housing, not in the cure.

Azarius
13 days ago

Affordable housing doesn’t equate to renting out a closet to make money and to say you are providing housing when in fact you would be hurting the market!

Anonymous
13 days ago

“I cannot develop a 12 unit apartment building on most lots in Little Havana. When Government bureaucrats decide that the lot can only have 6 units”

“Government bureaucrats impede the FREE MARKET”

“There is a horrendous amount of Gov’t regulation on housing in Miami-Dade”

I remember when some developers tried to get zoning changed so that apartment buildings can built at least five stories throughout little Havana, and some people who live there shot it down.

What if the local government is only bowing to pressure put on them by the local NIMBY’s?

Anonymous
13 days ago

Wow have you even read the zoning code? Large swaths of Little Havana are zoned T5 and T6, allowing for the density you mention. They also are exempt from providing on-site parking if kept to under 10,000 sf.

Anonymous
11 days ago

^ If you think I’m lying, do some research about it and tell me what you discovered.

Anonymous
14 days ago

San Francisco is the typical example of liberal policies… hope Miami won’t go there !!

Anonymous
14 days ago

And Philadelphia Mississippi is the typical example of conservative policies… hope Miami go there!!

Anonymous
13 days ago

Apples to oranges. When NYC was under Giuliani, it thrived despite 9/11.

Anonymous
14 days ago

Its not about liberal or conservative its about common sense policies!! Common sense is that the more people you have the more problems you have. Texas and Florida, both red states will soon have the same issues as NYC, SF and LA!

Anonymous
13 days ago

The problem with those 3 cities is they don’t allow building as much as FL or Texas. Both FL and Texas have a huge number of people arriving in a one year period, any city within both states would be overwhelmed. Where as NYC, LA, and SF have had decades to deal with their problems but haven’t….speaking of each despite the massive rent price increases just earlier on here there was an article about how the homeless population in Miami was at its lowest point….Miami is already doing better than any of those 3 cities even with the avalanche of new residences entering the city in one year.

Anonymous
13 days ago

“the more people you have the more problems you have.”
Really?? When I was kid, there was major starvation and disease in Ethiopia. Ethiopia isn’t really dense from a people per sq mile measure.

As you think about Haiti, and other impoverished countries, it isn’t the ones with high population density who have problems.

Anonymous
13 days ago

Um, South Florida, DFW, and Houston rival the population centers of New York and California, and have for quite some time.

Anonymous
13 days ago

Miami isn’t San Franciso, Miami is building more apartments in a single year than San Franciso has in the past 5 years. The housing market will eventually return to somewhat normal but it make take a couple of years.

Azarius
14 days ago

I wonder how many high wage jobs 75k+ we have gained with the last year

POLO
14 days ago

LA, San Francisco prices, but without the high wage jobs is a bad combo.

Anonymous
13 days ago

Do not buy into the false premise that there are “no high wage jobs”.

Anonymous
13 days ago

Not many, this is the issue. Employers here pay low salaries.

Anonymous
13 days ago

speak for yourself

Anonymous
13 days ago

For those who create value, you will get paid handsomely in Miami.

Anonymous
13 days ago

this sounds like something every part time real estate agent/dj/influencer puts on their instagram

Anonymous
13 days ago

A hell of a lot.
Not only that, but the people getting paid by their New York employers who are working remotely are spending their $$$ in Miami bars, restaurants, art galleries, etc.

The “research” in this article uses “income” data from an old US Census.

Anonymous
14 days ago

prices keep rising and some people still want Melo affordable projects to be rejected

Anonymous
14 days ago

Imagine where we’d be without Melo

Anonymous
13 days ago

We wouldn’t have two hideous barcode boxes downtown, and somebody else would redevelop the A&E District.

Anonymous
13 days ago

who would redevelop the A&E District? Moishe Mana by 2050 ?

Anonymous
13 days ago

Hahaha….”barcode boxes”!
Nice!

Anonymous
14 days ago

They should…

– The Pretty Police

lol…

Melo is sigma and chad
14 days ago

Yeah expect every tower to look like the austin martin or echo.

Anonymous
14 days ago

Aston Martin dude. Show some respect to Bond.

POLO
14 days ago

Melo projects are NOT (the rents) cheap, just the quality of his buildings!

Anonymous
13 days ago

it’s true that rents in Melo buildings are n’t cheap but they are very affordable for their location

Anonymous
13 days ago

“Affordability” to affordable housing experts is code word for free and/or subsidized by government, yet they wonder why or have a million excuses for Pruitt-Igoe.

Anonymous
13 days ago

Not reject the project, just tell them to go back the the drawing board literally, for design not even from a cost factor. They’re just ugly. Even affordable housing at Metrorail stops looks better.

Anonymous
14 days ago

Just keep updating the zoning so developers can build to meet demand and this will all work itself out. If you don’t upsize zoning then you end up like California

Anonymous
13 days ago

Mostly correct….but you dont’ even have to upsize the zoning, just allow for smaller apartments without mandatory parking requirements or unit sizes.

chupacabra
14 days ago

lotta onlyfans being filmed on brickell balconies during the last year….demand for density hoes???

Anonymous
13 days ago

Imagine how much higher the prices are if they didn’t lower the property values.

Anonymous
14 days ago

Time to bring in more AND BETTER jobs to Miami then!

Anonymous
13 days ago

More and better jobs is dominating the news.
Stop reading the New Times and start reading the South Florida Business Journal websites and you will be a better person, and more employable!!!

Anonymous
13 days ago

More and better jobs have been coming here, and being have been created here for a decade. Level up.

Azarius
14 days ago

Love the low key update on the Wynwood projects, looks like all of them are topping off

Anonymous
14 days ago

Solution? Build more and higher!!

Jesus
14 days ago

Well Thanks to the pandemic and the policies pursued up in the northern states in response to the pandemic, we are benefiting. I just hope the wages rise in relation to the housing prices.

Anonymous
14 days ago

Hey Jesus, people from northern states have been moving to Miami and people from Miami have been moving to northern states way before your mother and father were born.

Anonymous
14 days ago

You meant Mary and God?

Anonymous
14 days ago

Now that’s cold…

Anonymous
13 days ago

He likely thinks Miami was Little House on the Prairie before some guy with a beard and patrol cap did some things in a banana republic, so not worth wasting your time. Some people selectively think history started the day they were born.

NYC Loves Miami
13 days ago

NYC rents are considerably lower than normal. You can get a studio in Manhattan for as low as $1600 in a prime spot. Hard to find, but doable. $1800 – $1900 all over the place! It used to be $2500 for a studio in a prime location I have never seen anything like it. Last year was absolutely nuts! Owners offering 1,2, 3 months free! This is VERY different from the usual migration from NYC to South Florida. The politics is definitely driving New Yorkers out. Even prices up in Westchester County north of NYC is higher than normal. Take off the political sleep mask and wake up!

Anonymous
13 days ago

When my father/mother were born, Florida wasn’t in the top half of most populous states.
Florida didn’t crack the Top 20 most populous states until 1945.

In 2015, Florida passes New York to become the 3rd most populous state in the USA. It is safe to say that a lot of people have moved to Florida in the last 2 generations.

Anonymous
13 days ago

That still doesn’t make what I said untrue…

Rob
13 days ago

Shout out to the lefties just down voting every comment.

But for real. I’m out. I’m just priced out of this city.

Anonymous
13 days ago

“Shout out to the lefties just down voting every comment”

Haha, please.. I’m a “lefty” and they won’t even post a lot of my comments.

Anonymous
13 days ago

The American dream has become a nightmare. between government corruption School shooting homeless everywhere opium epidemic home and rent prices through the roof murder rate are up. thank God I left that country and I live in Spain where we have a beautiful culture.

adrian
14 days ago

If you think about the wages, it is probably the most expensive area. It has been the most expensive for a while.

Anonymous
13 days ago

This is terrible. Locals being pushed out by new tech residents.

Anonymous
13 days ago

sounds good to me

Anonymous
13 days ago

Smart locals own real estate and are watching their rental INCOME increase 27%. Their fixed rate interest rate is not up 27%

NYC Loves Miami
13 days ago

Happy for the locals that own property benefiting from the surge. Sad for the locals that can’t get out of the ghetto.

Anonymous
13 days ago

Can’t? Or won’t?
I’m sad for the can’t and the don’t know how to.

Anonymous
13 days ago

lol, if only their taxes and insurance rates and condo fees were fixed……

Anonymous
13 days ago

“ranking how much of their income residents spend on housing. It uses U.S. Census data to determine income levels”

This just in: Reported INCOME levels is not the best measure of wealth in a town with few Fortune 500 Companies paying W2 wages.

Couple this with the fact that Miami has thousands of ocean and bayfront second (third & fourth) homes loaded with amenities whose owners make INCOME elsewhere, but buy their real estate here.
If you are keeping score….this scenario gives you a numerator or Zero Income, and a denominator of Multi-Million “housing price”.

There are three types of lies. Lies, Damned Lies, and Statistics.

Scott
11 days ago

It maybe good in da short term that housing rentals are rising bcos high income earners will populate the city ..however a saturation is coming one day… With the huge rates at which high rental condos are flooding Miami scenery all over.
At that point the rental market will crash bcos there are still not enough high fortune 500 companies down in Miami compared to the likes of NY, Houston, Dallas, Chicago, Atlanta etc etc.
Granted the IT and tech sectors offers virtual jobs from home …nonetheless ..low paying jobs in da hugely Miami service jobber industry will not able to afford these astronomical rent and the city may lose it’s true identity and essence.
Thanks to corrupt official taking kick backs from condo developers instead of bringing down more fortune 500 and fortunes 1000 companies over.

Anonymous
14 days ago

Thank you BLM and all defund the police politicians that allowed a 30% increase in violence and crime in major Democratic cities and states forcing people to move to Florida
And thank to DeSantis too, for keeping the state open! And not sending the elders back to their retirement home while recovering from Covid 😊

Anonymous
12 days ago

High prices and high rent. Good if it is going to keep the riff-raff away.

Anonymous
11 days ago

Hey be careful… U might be da next riff raff

Tom
14 days ago

All well and good ,supply and demand. Just make sure to stay ahead of sea rise, get a plan and follow through

Anonymous
13 days ago

It’s all about infrastructure, including better drainage and transit, and not throwing half our tax dollars to failing schools that “teacher’s” unions and school boards pocket while expecting better education to attract better jobs.

Anonymous
13 days ago

Then how should I stay ahead of hurricanes, tornadoes, blizzards, snow storms, freezing cold, earthquakes, forest fires, drought, and man made pollution?

Anonymous
13 days ago

Eat right, wear your seat belt, and don’t fool around with dirty girls.

Anonymous
11 days ago

Dang.. who would’ve thought that it was that simple?

lol…

Anonymous
6 days ago

dirty is so much fun