Of course, one large affect on Miami real estate is the Florida economy as a whole. Recently, the economy is the sunshine state has been great thanks to job growth and home construction. According to UCF economist Sean Snaith, director for the Institute for Economic Competitiveness at the UCF College of Business Administration, Florida’s economy will outpace the nation’s as a whole.
“The fundamental underpinnings of the housing market in Florida continue to strengthen. Job growth in Florida is forecasted to continue outperforming the U.S. labor market and more baby boomers continue to reach the end of their working lives,” wrote Snaith in the second-quarter Florida & Metro Forecast. “This bodes well for continued population growth via the in-migration of workers and retirees.”
Measured by Real Gross State Product, the Florida economy is expected to grow at an average annual rate of 2.9 percent through 2019. According to Florida Metro & Forecast, the $1 trillion mark will break in 2018, and is expected to climb to $1.074 trillion in 2019. This would make Florida the 16th largest economy in the world, according to the World Bank.
An economy growing so much will draw in home buyers. They are expected to come from both within and out of state. Job opportunities will also continue to increase, allowing more people to buy homes. However, single family houses are in shorter supply right now. High demand and low supply is pushing prices up.
“While this looks like another housing bubble, it’s really just an old-fashioned shortage in the single-family market,” Snaith said. “It is expected to correct itself as new housing starts ramp up over the next few years.”
Median existing home prices in Florida are $213,000 compared to $122,200 during the housing crisis, according to Florida Realtors.
A booming economy is just another reason to live in Florida, and better yet, Miami. Check out the amazing properties at RE/MAX Paradise.