Miami, Florida has become a hotspot for those seeking new homes and new places to conduct business. Companies such as Microsoft, Goldman Sachs and JetBlue Airways opened new offices in the Miami area in 2021, leading to a massive boom in Miami’s real estate industry.

Miami Housing Trends

Throughout the fall of 2021, luxury homes and condos remained in high demand. These listings were fast movers and the availability of new listings in this category was limited. As a result of high demand and low supply, the average home price in Miami increased exceptionally and in fact, Miami surpassed L.A. in average housing costs, coming in second to New York City, where housing prices are the highest in the U.S.

These trends drove transplants from bigger cities across the U.S., with homeowners from places like NYC and Chicago, where people are used to paying top-dollar for real estate, flocking to Miami to get a piece of the city’s hot real estate market. These new high-profile residents are leading to record profits on luxury homes in the city, with some flipped luxury homes garnering almost three times their original investments.

Real Estate Pricing Remains High

Throughout the end of 2021, cost trends continued to remain in favor of sellers. Although a slight seasonal downward trend was predicted in October, the market continued to thrive, with the average condo selling for more than $550,000 and home prices in neighborhoods like South Miami, Miami Beach, Bay Harbor, Surfside and Golden Beach exceeding $1 million. The highest average sales were seen in Bay Harbor Islands, where the average home sold for more than $8.625 million as recently as August 2021.

Entertainment and Culture Industries Are Pushing to Keep Up

Miami’s experiencing new growth in its entertainment and culture scenes as businesses push growth to accommodate the area’s newest residents. Since summer and fall of 2021, new restaurants, supper clubs and cultural events have been popping up regularly, with some hot spots booking reservations months in advance. The club scene in Miami, which has always been famous for late nights, great D.J.s and good times, has been continuing to thrive, even while the pandemic seems unending.

Looking to 2022

As the pandemic carries on and workers continue to seek home offices that enhance their quality of life, it can be expected that Miami will continue to be a real estate hot spot. With endless sunshine, vast beaches and entertainment options that continue to expand, Miami residents have plenty to do outside the office and whether they’re working from home or employed at one of Miami’s top businesses, opportunity in this beautiful city is plentiful.

Those looking to move within the city or to relocate from outside the city should consider looking early, as availability may be limited. That being said, there are homes available in Miami’s best neighborhoods and working with a Realtor who knows the city and its real estate market well is the best way to find one that suits you.