New Report Shows Miami as the Most Competitive Rental Market in the United States

Renting is at its greatest level in fifty years, with almost 44 million American households renting. However, some renters found it difficult to find a new place to call home in 2022, particularly in the highly sought-after South Florida region, which has long been a popular relocation destination for individuals from all over the country.

Additionally, in the past two years, more people have relocated to the Sunshine State as a result of laxer rules and the growing use of remote work. As a result, migrants found themselves in a competitive market with local residents looking for units, making Miami-Dade the most popular rental market in the country.

RentCafe.com examined the 135 biggest U.S. markets examing five crucial metrics that include the number of days apartments were vacant, the percentage of occupied rentals, the number of prospective renters, the percentage of rental renewals, and the share of apartments completed for the year.

The largest metro areas in Florida opened new apartments this year more quickly than any other city in the nation. However, this was still insufficient to meet the rising demand in such a well-liked location.

Due to record-high occupancy and high lease renewal rates, Miami had the hottest rental market in the United States. Numerous Millennials and even members of Generation Z who wanted to work and live in the Sunshine State were drawn due to a number of factors, including the absence of a state income tax, the business-friendly environment, and the thriving tech scene.

Renters in Miami are in a very difficult situation because practically all units are occupied, especially since 75% of apartment residents choose to stay put this year. As a result, Miami’s rental apartments were full in 25 days on average, with a record-breaking 32 renters competing for each available property. Additionally, despite the metro area’s stunning 2.8% rise in apartment supply in the first half of the year (the highest growth rate among the top 20 cities in the ranking), the high demand for rentals is still far from being satisfied.

Notably, the city’s favorable business environment, which draws corporate relocations and expansions, maybe the cause of this demand. Orlando is also a member of the Florida High Tech Corridor, which attracts business people, students, and young professionals.

Florida welcomed the newest residents between 2020 and 2021, according to the US Census Bureau (220,890 people looking to escape high taxes and frigid winters in the North). Arizona (170,307) and Texas (170,307) were much behind it (93,026). And even while developers are hard at work constructing apartments all around Florida, the supply of recently created rentals is just insufficient to meet the soaring demand for housing.

Supermodel Gisele Bündchen Purchases Surfside Home for $1.25 Million

On February 28, supermodel Gisele Bündchen paid $1.25 million for a modest three-bedroom, three-bathroom home in Surfside, a community between Bal Harbour and Miami Beach.

Although Bündchen formally filed for divorce from her famous quarterback husband Tom Brady on October 28, she may have been preparing for the separation.

This residence appears to be smaller among those Bündchen formerly occupied with her soon-to-be ex-husband, at only 1,540 square feet. It is still unclear whether she plans to remodel the interior of the home.

The Art Deco-style cottage, which is only a few blocks from the beach, has white walls and hardwood flooring in all of its common areas. Stainless steel appliances, white cabinets, and a marble waterfall island are all featured in an open-concept kitchen that flows into the living room with ample space for entertainment and comfort.

Two large windows line the modest primary bedroom. The main bathroom has white brick walls and farmhouse-style hardware in a rich gold color, as well as a glass-enclosed stand-alone shower. The little backyard is home to a grassy lawn and a small tiered patio.

The Brazilian beauty and 23-year NFL veteran had been married for 13 years and had two kids together. Tom Brady also has a son from his past relationship with actress Bridget Moynahan.

The former power couple has owned several properties together, including a 14,000-square-foot Brentwood home and their latest mansion still in construction on the ultra-exclusive Indian Creek Island in Miami, which counts Enrique Iglesias and Jared and Ivanka Kushner as residents.

Miami Real Estate Sales Soar for the 17th Consecutive Month

According to the Multiple Listing Service (MLS), Miami-Dade County real estate achieved its best-ever February sales month as existing condo transactions climbed by double digits for the 17th consecutive month, following the historic January 2022 and 2021 year sales.

Total house sales in Miami-Dade County increased 13.2% in February 2022, from 2,485 to 2,814. Due to low availability, Miami single-family home transactions fell 7.9%, from 1,093 to 1,007 units. Existing condo sales surged jumping up 29.8%, from 1,392 to 1,807, marking the 17th consecutive month of double-digit year-over-year condo gains.

Home sales were much higher in February 2022 compared to February 2020 with total house sales up 51.1% compared to February 2020, from 1,862 to 2,814. Miami single-family house sales are up 13.9% while condo purchases are up 84.8% from January 2020.

Miami luxury condo sales are up 45.4%, with mid-market transactions ranging from $400,000 to $600,000 on the rise. In addition, Miami’s existing condo luxury ($1 million and more) sales increased 45.4% year on year to 237 deals.

Miami single-family houses valued between $400K and $600K climbed 24.7 percent year over year in February 2022, with 389 sales. Miami’s existing condo sales in the $400K-$600K price range surged 101.8 percent year over year to 345 deals in February 2022.

Single-family home inventory fell 29.3 percent year on year in February 2022, from 3,128 active listings the previous year to 2,212 this month. Condominium inventory fell 55.1 percent year on year to 5,272 from 11,735 during the same time in 2021.

Months’ supply of inventory for single-family homes has been decreasing since July 2019, suggesting high demand. Months of inventory for single-family homes fell 39.3 percent to 1.7 months, indicating a seller’s market. Existing condominium inventory fell 74.5 percent to 2.6 months, indicating a seller’s market. A balanced market between buyers and sellers provides six to nine months of supply.

The total number of active listings at the end of February 2022 fell 49.6 percent year on year, from 14,863 to 7,484.

In February 2022, Miami-Dade County single-family median prices grew 19.1 percent year over year, rising from $450,000 to $536,000. The median price of a single-family home in Miami has climbed for 123 straight months (10.25 years), the longest unbroken stretch on record.

Year over year, the median price of existing condos grew by 26.7 percent, from $300,000 to $380,000. The median price of a condo has risen in 125 of the previous 129 months.

Mortgage rates have typically been low, making house purchases more accessible. The average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.76 percent in February, up from 3.45 percent in January, according to Freddie Mac. The overall commitment rate for 2021 was 2.96 percent.

Miami real estate is attracting several bids, with buyers willing to pay above the asking price. In February 2022, the median percent of the initial list price obtained for single-family houses was 98.7 percent, up 1.5 percent from 97.2 percent the previous year. For existing condominiums, the median percent of the original list price obtained was 97.8 percent, up 3.7 percent from 94.3 percent last year.

Miami cash sales accounted for 75.6 percent of all sales in February 2022, which is much higher than the national average. In February 2022, cash transactions accounted for 43.9 percent of Miami closed sales, up from 35.8 percent in February 2021. According to the most recent NAR figures, cash accounts for around 25% of all house sales in the United States.

Cash sales made up 53% of all existing condo sales in Miami and 27.5 percent of single-family purchases.

Miami Real Estate Sales Soar for the 16th Consecutive Month

According to the MIAMI Association of Realtors and the Multiple Listing Service, Miami-Dade County real estate extended its record run of house sales with its best-ever January sales month, as existing condo transactions climbed for the 16th consecutive month.

The record-breaking 2021 included the greatest annual total dollar volume, all-time year total house sales, most single-family home sales, most condo transactions, and the highest number of cash transactions. Now, 2022 brings its best January sales month in history.

Homes sales rose 19.6% in January from 2,211 to 2,645. Single-family home transactions increased from 968 to 1,008 transactions at about 4.1%. Condo sales saw a higher increase at 31.7% from 1,243 to 1,637 transactions. This marks the 16th month of double-digit condo gains.

Compared to last January, home sales are up 42.4% from 1,857 to 2,645 with single-family homes at 13.6% and condos at 68.8%

Luxury condo sales also surged at 69.9% compared to last January at 192 transactions. Single-family luxury homes rose 20.4% at 201 sales.

Median-priced Single-family homes between $400-$600k rose 31.3% to 386 transactions for January. Condo sales in that same price range rose 98% with 303 sales in January.

Inventory decreased for both single-family homes and condos. Single-family homes decreased by 9.1% while condos decreased by 3.6%.

Median family homes sale prices increased 10.8% in January. Single-family home prices rose for the 122 consecutive months while condo prices increased for 124 consecutive months.

Total dollar volume hit $2.1 billion in January with single-family home volume increased 16.7% while condo volume increased 56.2% for January.

The sales percentage of Miami out preforms the Nation while in state, single-family home sales increased 1.4% in January 2022. Condo sales increased 6.7% in January 2020.

Single-family median sales percentages reached 98.1% for January 2022. The median sales percentage for condos increased by 3.2% compared to last year’s median sales percentage.

Cash sales in Miami make up 40.1% of real estate transactions, which is 48.5% more than the national average for January 2022. Cash sales made up of 49.4% of condo transactions while 25% of the single-family transactions were in cash.

According to the Miami Chairman of the Board, Fernando Arencibia Jr. stated, “The demand for Miami real estate has never been higher from both domestic and global homebuyers. Major U.S. companies opening HQs in Miami, surging domestic and global migration to South Florida, a larger percentage of Florida residents in their prime home-buying years, the expansion of remote work, low mortgage rates, Florida’s low taxes, relaxed Covid restrictions, South Florida’s healthy lifestyle and more have each played roles in Miami’s booming sales.”

February Real Estate Stats Are in for Miami Dade County

In Miami-Dade County, condo sales and dollar volume increased in the first week of February. Volume for the week rose to $232 million which is up from $159.5 million from January 2022. Units sales increased from 210 to 259 units. The average condo price also rose from $759,000 to $896,000 in just one week.

The top sale for the first week of February was none other than a Palazzo Del Mare unit on Fisher Island. Sold at $21 million, which equals $2,874 per square foot. This property is considered the highest closing on Fisher Island this year.

The unit located at the Palazzo Del Mare unit 7153, features 5 bedrooms, 5.5 bathrooms, a terrace, a playroom, and a conference room spanning over 7,025 square feet. It also has a private 2-car garage on the parking level of the building and a private cabana near the pool.

Seller for the unit, Igor Olegovich Nesterenko, is a businessman in the meatpacking industry from Moscow. The buyer for this property is listed as Fana Fisher Palazzo 7153 LLC, which is managed by a trust in Bellevue, Washington.

For the second week in February, condo sales and volume fell slightly for Miami-Dade. Volume reached $148 million with sales totaling 206. The average condo price also fell to $719,000 from the $896,000 that was in the first week.

The top sale for this week included that of Oceana Bal Harbour. The unit located at 10201 Collins Avenue unit 2401 sold for $10.5 million equaling $2,630 per square foot. The sellers for this property include Tatiana Zorina and Kirill Stadnikov and the buyers are listed as Andrew and Jacqueline Africk.

This corner unit on the 24th floor of Oceana features gorgeous views of the ocean and the Miami skyline. The open-concept living areas flow effortlessly throughout with floor-to-ceiling glass windows. The 3 bedrooms showcase marble bathrooms and European cabinetry. This unit also features a private elevator foyer, powder room, 3 parking spaces, and storage space.

Miami-Dade County real estate has been steadily increasing month over month. In December 2021, we saw an 18.6% increase in condo sales with a 100% increase for luxury condo properties. We are excited to see what’s in store for Miami real estate.

CEO of Kayak Breaks 2 New Condo Records all on the Same Day

Kayak co-founder and CEO Steve Hafner paid $40 million for a penthouse on Fisher Island–Palazzo Della Luna after selling his smaller unit at L’Atelier Miami Beach for $36 million in two straight record-breaking deals.

One of the records include Mr. Hafner’s duplex at L’Atelier Miami Beach, which was listed for $39.9 million in March and sold on Friday. Mr. Hafner purchased his 6-bedroom, 7.5 bathroom unit at L’Atelier Miami Beach for $21 million in 2017 while the project was still under construction. Mr. Hafner and his wife, Staci Hafner, worked with Bart Reines Luxury Home Builder to redesign the 8,000-square-foot unit.

A glass elevator, a private 40-foot infinity pool, and a summer kitchen and bar are all included in the penthouse. SMG Management and W Capital Group developed L’Atelier.

Mr. Hafner then smashed his own record by purchasing a nearly 10,000-square-foot condo at the Palazzo Della Luna on Fisher Island later that evening. The seven-bedroom mansion was first listed for $40 million in 2018 and then relisted for $48 million in April.

The new purchase sits on Fisher Island, a 216-acre private island south of Miami Beach, and is home to around 800 CEOs and business owners. According to the listing, Mr. Hafner’s new house at the Palazzo Della Luna is on the 10th level with various terraces and a rooftop patio with a pool.

According to the company’s website, Mr. Hafner co-founded Kayak Software Corporation, an online travel booking tool, in 2004. Booking Holdings bought the company for $1.8 billion in 2013. According to property records, Mr. Hafner, who also owns residences in Rowayton, Conn., and the Hamptons, sold his New York condominium for $23.5 million earlier this month.

Before these new records, the county’s highest-priced condo purchase of the year was a penthouse at Continuum that sold for $35 million in April. The highest-priced condo transaction ever was a $60 million double penthouse at Faena House in 2015.

According to the press release, Hafner hasn’t been to their NYC apartment since the pandemic first started and they didn’t see a way back. The seller’s were represented by Eloy Carmenate with The Corcoran Group. The buyer of the L’Atelier penthouse is currently unknown.

Rosso Development and Standard International are Partnering to Bring a 228 Unit Condo Project to Midtown

In its very first partnership, Standard International along with Rosso Development are collaborating on a residential project that will bring a 12-story tower to the Midtown neighborhood of Miami, The Standard Residences Midtown Miami.

Sales are slated to begin on November 30. Arquitectonica and Urban Robot are collaborating on the project, which will be located on the southwest corner of Northeast First Avenue and Northeast 32nd Street across from a grocery store development that is currently under construction.

The Standard Midtown will feature 228 luxury condos ranging from 432 to 965 square feet of living space with studio to two-bedroom floor plan options. Prices will range from $329,000 to $829,000

Payment Structure:

• Deposit 10% at reservation
• Contract and Groundbreaking 20%
• 6 months after contract 10%
• Top off 10%
• Closing 50%

The units will feature cubby kitchens designed by Urban Robot, expansive terraces, and master baths with double showers. Unit owners will be able to rent their units for periods up to 30 days with exclusive benefits to friends and family.

Amenities:

• 35,000 square feet of amenities
• 10,000 square feet of retail space
• Expansive lobby with lounge areas and a cafe
• Rooftop restaurant
• Bar
• 60-foot resort-style pool
• Sweat room and fitness center
• Indoor pickleball court
• Yoga and stretch studios
• Karaoke bar
• Pet Spa
• Party room

Carols Rosso, owner of Rosso Development has stated that this is his first major development since he left the Related Group. Rosso hinted at additional Standard-branded residential projects in the pipeline.

Standard International, currently operates 16 hotels in the United States and across the world and owns a waterfront hotel on the Venetian Islands in Miami Beach named the Standard Spa.

Construction is planned to begin next year and be finished by the middle of 2023. The site at 3100 Northeast First Avenue, as well as the air rights above the existing neighboring garage, are owned by Vadia’s Midtown Opportunities VIIIB LLC.

Developer Sells Palm Island Mansion for $17 Million

Miami-based developer Pedro Adrian of Adrian Homes has recently sold his Palm Island waterfront mansion for a cool $17 Million. The buyer, listed under a LLC by the name of JLG Family Holdings LLC, purchased the property at $1,459 per square foot. The LLC is managed by Jorge and Aida Garcia of Miami Beach.

Located at 198 Palm Avenue, Miami Beach, this gorgeous estate was originally built in 2016 by Adrian and his wife Adria. Featuring 30,000 square feet of property and 100 feet of water frontage, this land is the perfect backdrop for the modern Mediterranean home.

The lot itself is considered one of the largest lots on Palm Island with one of the best views overlooking the downtown Miami Skyline.

The property features 14,000 square feet of unrivaled living space. A total of 6 bedrooms, 8.5 bathrooms, and a 4 car garage make this home truly spectacular. This mansion is not limited in amenities and the lucky buyers will enjoy a sauna, fitness room, and a temperature-controlled wine cellar.

This estate boasts top-of-the-line appliances and mechanicals. The backyard is complete with a 20×40 heated pool, expansive terrace with a summer kitchen and BBQ installation. The 2 large gazebos overlook the ocean and the spacious dock.

The Adrians own a primary home located at 145 Palm Avenue as well as an adjacent lot that features a tennis court.

Adrian Homes is a residential development company based in Miami. They have a long history with Miami and have been established in the area for the past 42 years. Adrian’s has built over 5,000 single-family homes as well as many retail and commercial centers in the Miami Area.

U.S. Lifts Restrictions for International Travelers November 8th-Will this Change the Miami Real Estate Market?

Since the pandemic, the Miami condo market has flourished with record-breaking sales, massive tech companies making moves to Miami, and new developments being announced every day. One of the biggest variables that South Florida has always counted on was the international buyers, but due to travel regulations, foreign buyers have dwindled.

In the past 12 months, homes sales for international buyers have dipped to 31% making it the lowest since 2011, with Florida having the most sales to foreign buyers. Although Miami has seen a surge in condo sales this past year, the majority were domestic buyers.

With President Biden’s announcement of lifting travel restrictions for foreign travelers from certain areas in Canada and Countries in South America, this is big news for the real estate market itself. Beginning November 8th, vaccinated travelers can resume travel into the United States. With this, we can expect to have an increase in international buyers.

According to the Miami Chairman of the Board (MIAMI Association of Realtors), Jennifer Wollmann, with international travel resuming in the United States in November, the expectation is that foreign home buying will grow in the coming months.

According to Biz Journals, elections in Peru and Colombia are soon and South Florida may see an influx in buyers from those areas. The Senior Vice President of the Related Group, Eric Fordin has stated that he was surprised at the number of international buyers taking an interest in the District 225 project. According to Fordin, the new construction tower has over 100 buyers that are from Colombia.

Even with the increase in new construction towers, inventory remains at an all-time low for single-family homes and condominiums. Currently, there are only 631 condos in new or under construction remaining unsold.

According to The White House press release, there will be a second phase to requirements for all inbound foreign travelers in January 2022.