Miami is a wonderful travel destination for many people. It is the 6th most densely populated major city in the United States, with more than 470,000 residents. It is also the 2nd largest metropolitan area in Southeastern US and the 7th most populous city in the nation. This means that Miami is the economic, financial, and cultural center of South Florida.
Aside from being one of the most popular tourist destinations in the United States, second to New York City, Miami is also one of the best places to invest real estate in the United States. Miami Real Estate is characterized by the 3rd tallest skyline in the United States, with more than 300 skyscrapers, following only Chicago and New York. It is home to the seven tallest high-rises in the Florida real estate market, and the highest one is Panorama Tower.
The housing market in Miami has been and continues to be one of the best places to invest in real estate. This is not limited to people living in the US, as it also includes investors worldwide. Many people might wonder how much it costs to buy a house or a condo in Miami. If you have the same question, you’re in the right place. Today, we are giving you some ideas on how much property costs in Miami, Florida.
Costs of Properties in Miami
If you are an investor and looking into acquiring a property in Miami, Florida, one of the important factors you need to consider before deciding where to invest in properties is the real estate prices. Since the beginning of 2000, Miami has been one of the highest levels of real estate appreciation in the whole US housing market. With this, the city has been one of the best locations for investing in real estate due to its high long-term return rate.
The cost of a property in Miami depends on what type it is. Today, we are going to talk about residential real estate properties. Miami’s residential real estate market has different categories, such as single-family homes, condos, townhouses, multi-family homes, and foreclosure homes. Among these, condos are the dominant property type. Let us see how much each of these property costs.
1. Single-Family Homes in Miami
The median house price of single-family homes in Miami is around $520,600. When you have your property rented, the average monthly traditional rental income you can get is around $2,200. If it is on Airbnb, the rental income can be around $4,690 a month.
It’s great to invest in single-family homes for sale in Miami because they sell for about 4% below the city level median property price. You can definitely earn much from Airbnb, but the rental income for long term investment properties is also comparable. This property type has a much higher return on investment compared to the city average for both rental strategies.
However, you just need to remember that the Miami real estate market for single-family homes is currently a seller’s market. There are more than a thousand single-family homes that you can choose to invest in Miami.
2. Condos in Miami
The median property price of condos for sale in Miami is around $560,000. When you buy a condo and have it rented, you can earn an average monthly traditional rental income at around $2,380. Airbnb rentals on Miami condos, on the other hand, is around $3,170.
Many investors consider condos in Miami ideal. One of the most important benefits of investing in a condo is a large number of available Miami homes. In fact, there are over 2,000 condo listings in Miami, which allow even bigger investors to find a profitable investment property. The condo market in Miami, unlike single-family homes, is a buyer’s market.
If you are on a tight budget, you should know that condos in Miami sell for 3% more than an average Miami investment property for sale. And in terms of per square foot, condos are also the most expensive. It’s because they come with more amenities and extras compared to other types of properties.
3. Townhouses in Miami
The median house price of townhouses in Miami is around $380,100. When you let your townhouse rented, you can earn an average monthly traditional rental income of around $2,010, and around $4,350 on Airbnb.
Investing in Miami townhouses can give you a profitable real estate investment opportunity, especially if you have little money. They sell for 30% less than the median home value, but the cap rate they generate as traditional rentals exceeds the city level. Townhouses are the most money-making property type for Airbnb rentals because they offer the highest return rate. This is because you can purchase a townhouse at a low property price, and you can have it rented on Airbnb for a high income. There are more than 100 townhouses for sale around Miami that investors can check out.
4. Multi-Family Homes in Miami
The median house price of multi-family homes in Miami is around $483,700. Having one rented can make you earn around $2,150 monthly.
Investing in multi-family homes in Miami offers investors the opportunity to expand their real estate investment portfolio with a single property purchase. It is also easier to manage multiple rental units within a multi-family home, compared to managing several rental properties in different housing markets.
Multi-family homes are lucrative passive real estate investments. It is also easier to finance the purchase of a multi-family home to rent out compared to purchasing a single-family home or a townhouse because having a 100% percent vacancy, and no rental income is less of a risk. In Miami, multi-family homes are the second most profitable property type after single-family homes. They also provide good income and return on investment. More than 100 multi-family homes are for sale in Miami, which investors can check out.
5. Foreclosures in Miami
The median property price of foreclosed homes in Miami is around $315,900. Having one rented can earn an average monthly traditional rental income of $2,020, and around $3,800 on Airbnb.
If you are a practical real estate investor, buying a foreclosed home for sale in Miami is a good option. In fact, it is the best source of affordable houses in Miami because these foreclosures are listed for 42% less compared to other homes for sale in the city. With this, investors are allowed to make their return on investment higher from scratch because the Airbnb rental income can be compared to the average city level. With only a few repairs and fixes, foreclosed homes can provide high forced appreciation.
These are the average costs of each property type in Miami, Florida. Remember that these are only the median prices. Meaning, these costs can go higher or lower depending on different factors, such as location, amenities, etc. But overall, we can say that investing in properties in Miami is one of the best decisions that you can make, especially if you want to generate more income.