Factors and trends affecting South Florida real estate marketing 2019

With Florida being in the top 5 destinations for both domestic and foreign investors with the 4th best tax climate in the United States, it is no wonder that its real estate market is constantly under the microscope and is quite turbulent at times. Keeping up both with the trends and the undercurrents is the best strategy for anyone interested in this particular area, and especially South Florida, as even a superficial study of historical real estate price shifts reveals incredible and dramatic dynamics.

South Florida’s real estate market prices have been historically affected by the following factors: employment rate, population density, and economic situation. Florida is the nation’s third most populous state after Texas and California with the projected growth of 1.8% by 2020 due but not limited to the above national average job growth attracting movers from all the other states. Together with an astonishing unemployment rate drop (to 2.8% from 3.6% in Broward County and to 3.2% from 3.7% in Miami-Dade County) in South Florida in 2018, the overall picture and investment climate look very promising. Both Miami-Dade and Broward Counties have a higher percentage of residents between the ages of 25 and 44 than the U.S. average. And even though doing business in Florida has become more expensive in recent years, due to the rising cost of construction materials and labor costs, Miami-Dade downtown is still actively attracting new developments (according to the Urban Land Institute study for the United States and Canada in 2019).

South Florida real estatetrends to bet on

• Compared to other areas of the state, South Florida offers a wider diversity of markets for different investors. And while Fort Lauderdale and Broward County are attracting mainly local investors, Miami area and Miami-Date County appeal to global investors. It is a buyer’s market despite its constant growth and this trend will be continued throughout 2019 and 2020.
  
• The development of e-commerce is continuing to take the pressure off the commercial real estate market. South Florida’s location and a hub city status are giving investors an even more significant advantage in the face of this new trend. While the market is currently adjusting to accommodate the dramatically growing demand for means of containing a distribution network that is constantly increasing its density, it is a perfect moment to make your move in the field.
  
• The multifamily sector has registered an overall NCREIF total return of 6.38 % last year, which will bring back interest in suburban assets, as well as garden apartments. With millennials, the fastest-growing age group among the population in South Florida, are maturing and starting families, this type of investment will only continue its growth on the market.

South Florida real estate market factors to keep in mind

• An increasing number of issues with the area’s infrastructure is rapidly decreasing the employment rate in the sector, which is projected to create a shortfall of household income of $3,400 annually by the American Society of Civil Engineers. The current median household income for Miami-Dade Countyis $49,930, while for Broward County it is $51,574.
• With floods, wildfires, andviolent storms taking place in 2018 and with property/ casualty insurance companies facing large payouts, it is obvious that property damage risks are among the factors that South Florida real estate investors should be focusing on in 2019.
  
• Cybersecurity is becoming more and more relevant as our homes and offices are becoming increasingly computerized, which opens the door to new threats, for which we may well be completely unprepared.