5 Reasons the Miami Real Estate Market is on FIRE!
Are you crazy?
Yeah right, sure.
That's what people would've told me or anyone else if we were to ask you this question two years ago.
Pre-pandemic, pre-COVID, if someone said to you, they asked you this question, if they said, in the future, not too long from now, we're going to have this worldwide pandemic where hundreds of thousands of people are sadly going to pass away, there are going to be tons of people in the hospital and there are going to be tons of unemployment and a lot of people would be struggling really well.
The question would be, what do you think is going to happen to the housing market?
And, if you said it's going to be ridiculously busy, it's going to be really hot throughout the nation and probably throughout the world, people would've said that you're crazy.
There's no way, but that how it actually is.
Here are five reasons why I feel the Miami real estate market is on fire.
REASON NUMBER ONE FOR MIAMI'S HOT REAL ESTATE MARKET
The first one is it's because of HENRYs. And you're like, what the heck is a HENRY?
A lot of people don't know what that acronym is.
A HENRY is a High Earner Not Rich Yet, which stands for HENRY.
So during the pandemic, what happened are a lot of people were working remotely.
A lot of people have worked at their companies and they were able to work from home because people just weren't going to the office because of safety, whatever, people weren't used to doing Zooms like I'm doing with this video, which I'll make into a video.
So, what happened is during that time a lot of companies that were in states where people get paid more than maybe in Miami, depending on the profession, where they were in the Bay Area, where they were living and their job was in the Bay Area or Chicago, New York, anywhere in the Northeast, maybe DC, Boston, these people were living there and working there.
But, what happened is during COVID, during this pandemic, these companies allowed their people, their workers, to work remotely, and going forward they were allowed to work remotely.
They didn't have to go to the office and they were given that option where they can work remotely, still do what they're going to do, but the good thing is they were going to get paid what they were going to get paid.
And, I know there are some incidences where some people if they moved, they lowered their pay, but for the most part, most people, when they were working at that job, and they were allowed to work remotely, they were able to move to Miami where the cost of living was less.
So, for all those places that I mentioned, for the most part, their cost of living is more. Florida (Miami) doesn't have a state tax and there are a lot of other things that people can save on.
So, they ended up making more. Housing is less expensive than definitely the Bay Area, definitely New York, Chicago sometimes depending on where you live.
And so because of that, people that are working remotely decided to move to South Florida, to Miami and besides the pay, besides making more money and having lower expenses, a lot also thought our weather is great.
They love our weather. Right now in Chicago, it's probably really cold in the wintertime.
Well, it's almost winter, but even in the fall, it's way colder than in Miami. Today the high is like 75, and today's a cold day.
People are bringing out their jackets that they never use or their boots sometimes just because they want to wear them. So, today the high is 75, the low is probably in the lower to mid-60s, and they felt the weather is better.
REASON NUMBER TWO FOR MIAMI'S HOT REAL ESTATE MARKET
So number two, a lot of the tech companies, financial companies are moving to Miami, and again, because they're able to move their headquarters to South Florida, they're saving a ton on taxes.
We don't have a state tax as I mentioned before. So, our mayor has been really promoting tech and the financial industry to South Florida. He's tweeted about it, he's been really big on this, which is great. I love that people from all around the country are moving here.
And, there are so many people in the tech industry, so many people in the financial industry. You may not know this, but I did finance in college, so I don't know, I like when those people move here. Another thing that Mayor Suarez is doing is, he's making cryptocurrency, like the conferences big here.
A lot of people are... I don't know if Miami is that capital for Crypto in the US, but the way it's moving towards it, it seems like it's going to get there because of all the major cryptocurrency conferences that are taking place in Miami. Many people are moving here to do jobs in crypto. So that also helps.
And you know what it is, it's not always the industries moving here that get people to move here, it's that vibe that people feel. If they know that all of a sudden we're getting techy and there's crypto and finance, that makes us...
I don't want to say this is in a bad way, but that makes us a little bit cooler. Not me obviously, but Miami. So, that's number two.
REASON NUMBER THREE FOR MIAMI'S HOT REAL ESTATE MARKET
So, number three is, I was talking about those HENRYs earlier, a lot of these HENRYs like going forward.
And so again, high earner, not rich yet. What does that mean?
A high earner, not rich yet means typically they're people that are new in a profession or younger people.
It doesn't always have to be younger, but where they make a great income, but they haven't been doing it long enough, so they're not really as wealthy as a lot of them would like to be.
So, as these HENRYs start doing it for longer and longer, these high earners, some of them become ultra-high net worth individuals.
So, these Ultra High Net Worth Individuals (UHNWI), if I'm not mistaken, they have 40 million of net worth that doesn't include their real estate.
So, there are many, many of those people in the country and obviously in the world, but a lot of them are moving to Miami and South Florida.
When I say South Florida, like Fort Lauderdale, Palm Beach, and stuff, but where they're moving to Miami and these other areas because we don't have a state tax.
And so, all of them that are moving here, they're changing their residence to Florida where they are saving a ton.
A lot of them save a ton on taxes daily, so they're used to real estate being way more expensive in the areas that I mentioned.
And so, first of all, they're getting a great bargain for what they're buying here.
They're getting a lot more value for their money and they're able to save on taxes.
So all these very, very expensive in Miami people's eyes homes, these homes that we thought were very expensive, are bargains for them.
So, all these very, very expensive homes are selling because people are saving a ton of money because they're saving on taxes.
We don't have the state income tax as I mentioned.
So, that's number three.
REASON NUMBER FOUR FOR MIAMI'S HOT REAL ESTATE MARKET
As most of us have realized during COVID and those times where we had to stay at home a lot more, thankfully things are getting a little bit better.
I know there's a new variant, but hopefully, that's in check.
But during those times where we were forced to stay at home to prevent losses, loss of life, during that time, we realized how important space is, how important it is to have a yard or even if you're not getting a yard, how important it is to have more space in your house, condo, townhouse, having that space.
So they are looking for more square footage, land, they want a room for a home office because during COVID, and even now, when you look at searches, people when they're searching for places to buy, if you compare that to maybe two, three, four years ago, it is very common to look for more square footage, more bedrooms, maybe one for the office, an area for a home office, maybe a little bit more land in the yard.
So with that said, number four is Bang for Your Buck.
In South Florida, Miami, you get so much more for your money than those other areas that I was speaking about: Boston, DC, Chicago, New York, the Northeast, Connecticut, New Jersey, the Bay Area, San Francisco, and surrounding areas.
REASON NUMBER FIVE FOR MIAMI'S HOT REAL ESTATE MARKET
So, last but not least is obvious. It's the weather.
Besides San Francisco and the Bay Area, most people and not everyone is going to agree with this, but most people, if they look at the weather Miami has year-round compared to those other areas, they find Miami's weather way, way nicer than most of those areas.
Again, it's not everyone, but many people do and we know that because every year, even pre-pandemic, we get way more people that move to Miami than leave Miami or Florida and it's the weather.
We have great weather all over Florida. So, those are the top five reasons.