Trump Administration: Making Miami Condos Cheap Again (For Foreigners)

The U.S. dollar has been falling, and the Trump administration doesn’t seem to mind. That could be good for Miami’s condo market.

A weaker currency brings benefits for the U.S., a Trump administration official said. At a press conference in Davos today, Treasury Secretary Steven Mnuchin told reporters that “a weaker dollar is good for us as it relates to trade and opportunities.”

With his comments, Mnuchin is seen as deviating from decades of tradition where U.S. Treasury secretaries have backed a strong dollar, at least in public.

Over the past year, the dollar has already dropped around 20% against the euro, while also falling against other major currencies.

The lower exchange rate makes Miami condos much cheaper for foreigners to buy.

Miami is already at full employment, with an unemployment rate below 4%.

 

Update: President Trump said Mnuchin’s comments were misinterpreted and that he is in favor of a strong dollar.

 

dollar vs brazilian real:

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Anonymous
3 years ago

A weak dollar is especially beneficial for Miami, given how proportionally much more important foreign investment and foreign tourism is for the city.

Anonymous
3 years ago

Dear TNM staff, Please do not let The Next Miami become a political trash website. I have been a steady reader for years, even when you were The Ex Miami… These zealous right and left wingers have countless websites to spew their veiled racism and nonsensical Marxist commentary. It would be nice to hear unbiased, non political updates on our great growing community. I know putting the word Trump in a title generates clicks. But this is NOT Fox News or CNN. Please report on progress. Thanks!

Anonymous
3 years ago

This report is not about politics. When Obama was the president, any report in the media about the U.S. dollar value just slightly being down was bullhorned by the right in their always zealous attempt to portray him as weak and destroying the economy.

Now quit your whining because you didn’t care what the media reported about Obama and the Democrats, so swallow this report.

Anonymous
3 years ago

Sounds like a zealous right winger to me…

William
3 years ago

A weaker dollar drives growth. Just has to be managed carefully

Anonymous
3 years ago

Like everything else in life, it’s about finding the right balance.

Anonymous
3 years ago

Let’s get the next development cycle started!

Anonymous
3 years ago

YAYYYYY !!!! MORE EMPTY CONDO’S AND PRICES LOCALS CAN’T AFFORD !!!!!

Anonymous
3 years ago

More people paying big uncapped property tax bills and who rarely use the services they’re paying for. The rest of the taxpayers can thank them.

Jesus
3 years ago

The tax burden in Florida is proportionally and absolutely a lot less than other states if you take in all taxes into account. He’s right. This has priced out locals. Not good if we want to see locals go to malls, stores, car dealerships to continue seeing the economy grow.

Anonymous
3 years ago

WTF!!?? You want condos for free?? There are plenty of condos in the mid 200s in Brickell, the CBD and Edgewater. That is affordable for middle class professional in Miami.

Miami Hurricane
3 years ago

“While a previous study concluded the Miami metro area to be the most cost-burdened rental market—those spending more than 30% of their income on housing— in the country, their latest report indicates we don’t fare much better when broken down by generation.
Miami Millennials, aged 18 to 34, rank third nationally with 59% of renters cost-burdened. It gets worse for both Miami Gen Xers and Baby Boomers, who each lead the nation in cost-burdened renters at 58% and 61%, respectively.” – ‘Miami is the most cost-burdened rental market again’ via Curbed 08/2017

Anonymous
3 years ago

Staying on topic is tough for you.

.

Anonymous
3 years ago

These reports are so flawed…always are.
They compare Greater Miami to places like Denver for instance. There are no oceanfront rental apartments rented for $70,000 per month to people making $0 in income in Denver. Miami has them.
Yet, that is how these studies go.

The guy who paid $50M for a condo at Faena has $0 income. Sooooo…the non-profits that commission those studies, lump in the $50M which raises the average price, and count the $0 income which lowers the income.

These two examples are the extreme, but a significant number of non-residents rent and don’t earn income in Miami. This makes Miami seem much more expensive on paper.

Anonymous
3 years ago

I wouldn’t say plenty, but yes, there are some in the mid 200s available here and there, specially in the buildings built in the early 2000’s

Anonymous
3 years ago

It’s priced out locals.
The population continues to increase year over year…but somehow, some people think locals are priced out.

This logic speaks more to the need for better education than monetary policy.

Miami Hurricane
3 years ago

Ah yes, the excessive and extravagant fine public services of Miami government: A privately funded baseball stadium, 911 operators who never reject theft reports, and public schools with 10:1 student to teacher ratios.

Anonymous
3 years ago

Go find all that somewhere else. You won’t.

Miami Hurricane
3 years ago

You are missing the point Anon argues that people are paying for government services that they don’t use (e.g., public education) which would mean we would have a surplus in funding that allows us to address and closely scrutinize issues like that.

Anonymous
3 years ago

No, you missed MY point. My argument is that you’d be paying more in taxes if it weren’t for all the vacation condos here. I’m not making judgements on public school education quality. You are.

Miami Hurricane
3 years ago

I see your logic, but it’s flawed and assumes minimal variables. The purchase of vacation condos substantially drives up the price of real estate and contribute to a tight housing supply, which creates a tight rental supply, thereby increasing property values. The process then continues repeating itself. That has been statistically ascertained.

If you can point me towards a study that mitigates these effects as a result of vacation purchases in Miami, I am all ears.

Dan the Man
3 years ago

Then get a better career……

Anonymous
3 years ago

I’m a local, I can afford it.
But, then again I’m not whiny little baby with a victim mentality.

Jesus
3 years ago

While a weaker dollar may make things more expensive, it does allow the growth of the city to continue. I would like to see the dollar continue as is but I definitely want to see stronger wage growth which would then drive the economy even more.

Anonymous
3 years ago

The dollar isn’t 20% down against the Euro. The Euro was always stronger, and plummeted due to speculation after Brexit, it is merely regulating back to normalcy.

Anonymous
3 years ago

^^ This is the accurate reality. Don’t understand this left or right nonsense. Like Anon. said:
“the dollar value has always went through the cycles of rising and falling no matter who’s the president, that’s just the nature of the market.”…
Each party will use whatever tactic to manipulate the people’s votes / beliefs. It is what it is, a market that moves in cycles. Is it good or bad? Well that depends on what we’re talking about. pros and cons folks, pros and cons.

Miami1
3 years ago

MAGA!!

Anonymous
3 years ago

Looks like the Dollar has maintained or strengthened against the Real since Trump took office, while falling drastically during 2016, before Trump took office.

Anonymousss
3 years ago

I don’t know why somebody gave you a thumbs down you’re just stating a fact based on the graph provided, which can be determined with using basic graph reading skills

Anonymous
3 years ago

Um yeah, but the dollar value has always went through the cycles of rising and falling no matter who’s the president, that’s just the nature of the market. But a weaker dollar only mattered to the right when Obama was in office because they didn’t report it as being “good for us as it relates to trade and opportunities” in their media back then. TNM is only pointing out the hypocrisy of the right.

Anonymous
3 years ago

No, that’s not what TNM is pointing out. They didn’t take political sides here. You did.

Anonymous
3 years ago

Yeah, you’re a rightwinger. If I would’ve said anything negative about Obama, you would’ve been quieter than a church mouse.

Anonymous
3 years ago

I’m an independent. Take off your Obama cheerleader skirt.

Anonymous
3 years ago

Oh look everybody, another one of these disappointed G.W. Bush voters who found saying “I’m an independent” convenient.

But you ain’t fooling me you Trumpeteer.

Anonymous
3 years ago

The dollar vs real chart provided contradicts the information stated in the article.

Anonymous
3 years ago

What an amazing piece of trash this article is. Do you really try to make us think that dollar is weak while it hit 74 times Dow highs in the last year? Seriously? Dollar was weak 2008-2016 and Miami sales were stalling good 6 years of it. Who wrote this? Some over obsessed democrat with hate Trump syndrome?