Property prices in Miami-Dade broke records again

There's a perfect storm. The country is going through its worst inflationary process in more than 40 years; construction is largely delayed because raw materials are not available (factories closed during the pandemic and delays in ports for what comes from abroad); and to this is compounded by the possibility of remote work, which caused thousands of of people, especially in areas like New York and California, left their homes to move to places like South Florida. This combination made Miami the number one city in post-pandemic economic recovery.

In addition to the rising trend in housing prices that occurred throughout the country, is compounded by the increase in demand for housing in the south of the state that generated a shortage in supply and, logically, led to an increase in prices.

The average price of a residential home in Miami-Dade during the month of March was $540,000, rising from the average $536,000 that properties in the county cost in February of this year. A year ago, the average value of residential properties in this county was $491,250, all according to an analysis by the Miami Association of Realtors. The jump in the price of condominiums in a year was even greater: in March 2022 a condominium in Miami Dade cost an average of 400,000 dollars, while a year ago it cost 305,000 dollars.

The funny thing is that for the first time the average value of residential properties was even higher in neighboring Broward County than in Miami Dade. In cities in North South Florida, the average value of homes sold in March of this year was $545,000, a considerable increase from the average $519,000 paid in February, and well over the $445,000 it cost a year ago. Some experts believe that the phenomenon in Broward in particular is related to the fact that more luxurious properties are being sold now. The condos in Broward cost an average of 238,000 dollars in March 2022, against 210 dollars in March 2021.

In this context, the mayor of Miami Dade, Daniella Levine Cava, called the phenomenon an affordability crisis. One of the Miami Dade commissioners commissioned an independent study of the situation to have real bases on which to make decisions. With the increase in the prices of homes for purchase, more are rent-seeking, triggering those prices as well.

The county recently allocated $13.4 million received from the federal government for a program that provides up to $3,000 to renters who are overdue in paying their rents to prevent them from being evicted. Other municipalities, such as the city of Miami, also launched their own tenant relief programs.

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