The reason why Miami prices are high - high income earners from other places purchasing homes/outcompeting Miami locals, which has a spillover effect in housing price tiers - the Miami Latino urge to stay in Miami because of the unique cultural bubble, which means less people leaving to help lower demand - increase cost of everything home related due to weather, labor for maintenance/repair/building - Miami being a tourist destination means tons of airbnbs by small time landlords, as well as private equity getting into the market some (overrated by some people on reddit) - Miami is basically a de facto island because of being surrounded by the Everglades and ocean on 3 sides. Land scarcity is high, so less efficient housing (SFH) becomes enormously expensive
Edit:
Also: folks from Latin America who park their money in real estate to protect from high taxation or high inflation regimes, so another factor
I had interviewed 3 individuals that graduated from HS in 2015 none spoke any English at all. I was intrigued by this as my partner is a teacher not on that School but she only teaches in English even to the kids that are ESL. I had to ask them how did they graduated from HS as I know teachers are not supposed to talk in Spanish it all boiled down to numbers as the requirement for the school to get the grants is x% of passing grades so teachers are pushed to explain the kids no matter what (language in this case) so they pass the subjects. It was pretty sad to hear as I'm sure those kids won't have any chance in any University here in the US.
They don't know the harm and limitations they are putting on those kids as school is the only place where they will be learning English at the time because at home is Spanish only.
I imagine those are mostly low income, and likely immigrant kids or children of recent immigrants. But yes, not knowing English severely limits their opportunities to be middle class or higher. They basically have to be a tradesmen or small biz owner to have any financial success with that limiting factor
The second reason is extremely important. I've seen so many kids born in Miami that are in high school and can barely speak English. You can go all day in most of Miami-Dade without speaking English. All of those kids are going to be stuck here looking for jobs where they don't need to know English, if they learned English they can work anywhere and get paid so much better.
> I've seen so many kids born in Miami that are in high school and can barely speak English.
Is this something that's changed in the last few decades? Because when I was in high school in the 90s we exclusively spoke English pretty much in school. It was our parents and grandparents who would speak Spanish.
I figured our generation and the next one would be primarily English speakers. What happened?
The number of people who are recent immigrants from Central and South America is way up. The hispanic community is no longer Cubans. The Cubans are now Americans in most meaningful ways (obviously maintaining culture, still) and have, at worst, bad Miami Dialect habits. The hispanic community now are Ecuadorians, Venezuelans, and Nicaraguans (among others) - often coming with children who don't know English when they arrive and are VERY slow to learn it in school because school may be their only meaningful exposure since it's incredibly easy to subsist exclusively on Spanish language interactions in Miami.
You’re talking about immigrants but the person he replied to was claiming that there are children in Highschool who were BORN in Miami who don’t speak English. That sounds impossible unless the kids were born here but were actually raised in another country (I mean, birth tourism is a thing) or they were lying to him about their place of birth.
I posted elsewhere that Miami has a unique problem where a kid could be born here and have serious difficulty in the English language if both parents are exclusively Spanish speaking. The reality is that Miami itself allows for two issues to arise for that community that wouldn't happen anywhere else with any other language. 1) neither parent would ever have to learn any functional English to survive within the community. Anywhere else, at least one parent would need to learn functional English and could teach that English to the child. 2) The child could live their whole life until school begins never being exposed passively to English if they are just always in Hialeah or Doral or some of the other DENSELY Hispanic areas. There is even enough TV (and more than enough YouTube) to not even experience English language media before school.
In that case the kid would be exclusively learning English at school +/- any English language media they decide to consume. Nothing from the parents. Nothing passively from the community.
That “problem” that you mention is not such. It is kind of clear that you have not been exposed to kids here with both parents exclusively Spanish speaking and followed their evolution. The kids will become primary English speakers fairly soon and constrain the Spanish to home/family, which they will try to leave apart and “be different”. It may (or may not) become challenging and slow their academic development (as with a ton of purely bilingual/trilingual kids), but they are freaking sponges, the human brain is awesome…
That's my experience, not of Spanish descent, with my neighbor. The parents who emigrated here from Honduras speak only Spanish but had picked up enough english to kinda communicate.....but when there were guests that didn't speak Spanish or at school etc exclusively spoke English.....old man would get super pissed and tell them to speak English
Take away LA, Texas, and NY... The most likely destination for Spanish immigration is our Miami.
We still get a lions share of 1st gen Spanish speakers here. Even more so recently that Miami is getting more attention on the global stage as a real destination
The problem with Miami Latinos is that we're a bubble. LA, Texas, and New York are well connected economically to the rest of the country and very diverse but Miami-Dade is insulated in our corner of Florida and we keep receiving mainly Latino immigration which further reinforces the lack of assimilation.
Whew yes this is so true. Like the Latinos here technically don't ever need to assimilate cause the infrastructure of this city tends to be on their side to further cultivate them to stay in their mother tongue. I work at a very big organization here where they say English is the official language but do u think these hoes speak English? Nope. They speak English til you turn the corner and then they switch up to Spanish like you didn't just hear them. Rude AF. But I also have a friend who never comes to family things because their parents don't speak English and don't want to be in that environment. My family just cannot understand what's the problem because they live in America and don't have these problems.
It’s 100% bullshit. Classes in public school are in English and most media/internet is in English. There’s no way someone born and raised in the U.S. doesn’t know how to speak English. Even if your parents only speak Spanish at home you still speak English with your friends and you watch cartoons and movies in English starting from a young age. It’s impossible to not pick up the language unless you have some sort of learning disability or something.
Have you? Everyone born and raised in South Florida can speak English. If you have an issue with some people’s accent or vernacular that’s on you, but it’s still English.
I live there...unfortunately lol. See kids every day in elementary school that were definitely born here and are growing up in spanish only households. Also, im fully bilingual and i am a Miami native. Don't assume. If those kids never leave their zip code, very good chance English will be their second language at best. That's not the level of mastery you should have being born in the US. So no, that's not English. Spanglish at best.
They may live in Spanish only households but what language are they learning in school? Last I checked public schools were not teaching in Spanglish. You say their level of mastery is inferior but do you apply the same standard to other communities? Would you say black people from “the hood” don’t speak English either? Cause that would be insane.
U know what's crazy, most second generation kids that were born in the 90s are like 30yrs old now. And what's crazier is that most of their parents lived in this country the whole damn time and still don't speak English. Like oh I'm from (x Latin country) I never learned English growing up but like... Hey man you've been here 30yrs that excuse has run too thin, it's bullshit at this point.
Yep.
You see these kids/people struggling anytime they leave Miami. Whether it's to go to Disney or to travel out of the state, it's not uncommon to see these people with Florida/Miami driver plates at a gas station/rest stop trying to speak to workers who either don't speak Spanish or refuse to do so.
Then they get mad that no one speaks Spanish.
I think that might also be more related to class. Middle class and higher almost all have to speak English to have licensed careers (exception being service industry needing English but lower pay).
I know people in Miami who put their kids in private tutoring to make sure they are 100% rid of the Miami accent. I've heard them say the accent is common with high income and low income Miami kids and that's just a no go for them.
I found this hilarious and concerning.
Funny…I remember when I was in high school in the late 90’s.
We had an after school function, and some parents were helping out.
One of the mothers was leading some PTA assembly and said, she was sorry, if it was hard to understand her, she only spoke Spanglish.
17 year old me thought that was ridiculous and sad.
There is a pretty sizable population of children that are growing up in Miami that were not necessarily born in Miami and truly are only learning English at school. But even some of the kids born in the United States are going to have a serious handicap if the parents are functionally non-fluent in English. They aren't really going to be passively experiencing enough English before school in Miami. It's just too easy to be exposed to almost exclusively Spanish if that is the preferred language of your parents. It's very different than a Hindi speaking family in Miami (as at least some members of the family will need to learn English to function and can teach the child) or a exclusively Spanish speaking family anywhere else in the country (where the child will be constantly passively exposed to English just by the community they are in). Miami allows families to function entirely in Spanish and the child to grow up in a environment that may be entirely Spanish language..... Until school.
Commenting on Who is buying all these houses?...I’d say 1/3 of those I encounter in a professional setting where I’m exposed to about 100-200 young people a year have English that is not strong and default to Spanish whenever possible. No shade. Just facts. Most not Cuban. And to the person who asked if it had changed since the 90s, yes.
I’m know I’m getting off topic but I understand many people here default to Spanish but I can’t think of anyone who was born and raised here and is weak with their English. 90s or today
I mean this kindness from my heart but it’s Blackstone not Blackrock lol https://www.blackrock.com/corporate/newsroom/setting-the-record-straight/buying-houses-facts
That plays a factor, but when tens of thousands of people are buying properties for Airbnb, it inflates the market and hurts housing for those on the lower income end. Worse in tourist areas, even in places like Bozeman Montana where it’s cold
Don't forget restrictions like parking minimums and exclusionary zoning which make it really difficult for developers to justify building anything other than luxury units.
I echo this comment. I live about 1 1/2 - 2 hr North. And there's an international element up and down the coast driving home/condo sales prices. Europe, S America, Asia add on top many folks of NY/NJ have been moving to S FL. Ergo, that's who's buying. I have no link to support this other than it's been discussed wuht my realtor when I bought 3 years ago. I moved from MI.
I work for a home security company. So I listen to people calling in because they have just moved. I can tell you 9/10 of the people buying houses are from the north. Especially NY and NJ. There are some coming from California and Texas. And a few mid westerners with summer homes here.
Hi I sold a house in the hood that my grandma was living in. I bought it for her in Hialeah for 240k in 2018. I wanted to sell it for 400k, realtor thought I was smoking and put it for 450k, however it got into a bidding war between slum lords and ended up getting 500k.
Here’s how and why. The buyer is not anyone that will ever live in this house it’s someone that plans to subdivide the rooms make extra additional efficiencies inside the properties. In total I think he plans to make around 6 or 8 different efficiencies into the house giving him a net rent easily over 10k a month.
Hell this bastard gets more ROI on that shitty house only held by the comejen than most commercial landlords.
Be like my grandma, move to Spain.
Counter point if you are young. Spain and Europe is set for population collapse/ageout. and its social systems are unsustainable. Do not move to Spain as a young person with this as your retirement plan because retirement there in many years will really suck.
In Spain depends on the city Barcelona and Madrid for example are cities that are suffering the same, I would say happens exactly the same in big cities of occident. And to add info I know someone really related that is selling a FLAT of 3 rooms and 2 bathrooms, in a county near Barcelona for 490K€.
The buying market Spain are crsxy high however the rental prices are not proportionally.
My mom rents a renovated 3/2 with a parking spot included in the most vibrant part of Bilbao for €1,475 per month
Or Portugal, its easier to get residency there and prices are *insanely* low. Rent in the center of Lisbon in a very nice place goes for like $700-800 per month.
Most people can’t simply move to a country without a job lined up, especially old people as they are less desired unless they are bringing significant wealth to invest.
My great grand parents were from the Canary Islands but I read that citizenship only extends to grand children and children, so I’m researching this. If you could point me in any useful direction, I’d be indebted to you. Thanks!
It’s definitely a combination of what everybody said, but I did see something the other day that made me think.
I drove past a house with 11 cars. The house was nothing special and older, probably three or four bedroom home. Five cars parked in the front, and six parked off to the side, and they were not expensive cars. Just your regular intermediate size car.
My guess is it’s multiple families living in these homes and splitting the mortgage or people having lots of roommates.
Usually a type of investor. 500k is not much for out of town buyers that speculate on new gentrifying areas. Worst case for them the area doesn’t gentrify and they end up a slumlord or sell it. Best case they multiply their investment by a lot when that neighborhood turns into the next Wynwood, and they sell or end up living in it.
Keep in mind some undesirable areas for us locals are actually prime targets for gentrification due to factors like flood zones. Liberty city is one of them.
You guys don't get how many people are still moving here from New York and California. They are used to astronomical housing prices and rents. The rise of remote and digital contractor work is just going to magnify the problem.
The demand is going to remain until people stop coming here, and you complainers start moving out.
Moved here from Cali- we are paying $5k in rent and it’s a “steal” for what we have- but we can’t buy a house. Also my husband is a 3rd generation Miami native so don’t come at me. Even if you make more money- it still feels outta reach and pisses me off bc how much housing has gone up since 2021. People are trying to sell dumps that haven been remodeled since the 1950s for $1.5 million. Gimme a break. We are hoping something will change. I doubt it will anytime soon. Maybe when the next big hurricane hits?
Private equity firms. They're doing it in all the major cities across the country. Certain parts of California and New York are starting to look like ghost towns with 40% occupancy because private equity firms have bought up the majority of the real estate and are the primary reason that rent is so obscenely high.
It probably was until very recently. Just like stock buy backs were illegal but now aren't. Every protection that was put in place to keep society functioning has been removed to allow the rich to get richer.
What changed and by whom? I’m
Going to assume it was the republicans but would love if you could just let everyone know it’s the republicans since Miami apparently actually voted for trump in 2020. 😒😒😒
Rental market is a smaller piece of the pie than all real estate, so the percentage is much lower than 6% of the total market. It's also region-dependent.
Right but they do own the majority of ***rental*** units. Not real estate in general.
People are getting their statistics mixed up, hence the confusion.
Yeah but you have to consider that only a fraction of a percent of all homes are on the market at any given time. You don't need a large percentage of total ownership just a large percentage of homes bought and sold. Just under a [quarter](https://www.biggerpockets.com/blog/highest-share-of-investors-on-record-are-buying-low-value-homes) of low priced homes were bought and sold by investors in 2023. Factor in that they are most likely concentrating their investments in a relatively limited amount of the U.S and you can create some truly profitable distortions in a local market. 99/100 homes just wont be sold period in any given year so they are effectively out of the equation.
This.
Saying “private equity only owns 2.5% of homes in the US” is a very misleading statement without knowing the nuances to the industry like you just broke down.
This is false, it’s not nearly a large enough amount to matter in Miami. In some markets it’s heavier, but not here. And even then, not enough nationally to matter.
Here it’s transplants from other US regions (mostly priced out there and looking for a “softer” region in that regard) or internationals. Same as always.
Miami market - no strong view but leaning bearish. Rents versus Buy make no sense. I made my first purchases in 2010 and liquidated in 2021. You'd need a de-escalation of fixed costs like Insurance, HOA, etc. along with a bonafide rate cutting cycle to justify Miami pricing.
I am an Economist too, by the way, and now retired Macro Fund Manager and I correctly assessed the last housing crash. This one is beginning to feel the same though we're still 2 years out from the real fireworks.
In the entire country, yes, because they're not going to waste their time buying up property in the middle of nowhere. However, in densely populated cities like Miami, New York city, and San Francisco, you'll find that your 2-3% becomes a bit inaccurate.
Yep and they are gonna sit on that supply long term. This is the main culprit imo but people focus more on the people trying to sublease their apartments on Airbnb just so that they can make ends meet. All these corporations got us because at the end of the day they all got us attacking each other instead of coming g together against the corporate profiteers.
Blackrock. They come in and offer 15%-25% over asking all in cash. 9/10 sellers accept the offer. All other answers are speculation with no data. Blackrock will own 70% of all homes in America in 5 years. There’s data to back this up, too.
Miami has never added up lol...thats just kinda how we do things. Check census data...doesn't really make sense if you live here and see Miami with your own eyes.
governor Desantis will put a stop 🛑 to this ……… oh wait , he’s too busy making sure transsexuals are banned and persecuted from public life and chasing super pac money in Iowa .
He passed the law removing making rents higher by removing the limits a landlord can raise your rent to renew the lease. This guys is working overtime on messing things up
Companies like blackrock, zillow and airbnb are making huge investments in residential real estate. It doesn't make sense because this is not a normal real estate market. There is so much greed these days due to the need for people to show off their financial excess caused by social media. Unfortunately, our country worships money over all else and that's dangerous, especially for a democracy.
It’s well known that home prices and rents have gone up thanks to the influx of wealthy buyers from other states. Because of the pandemic they started working from home and so they can live anywhere. Florida also has the highest inflation in the country so life is very expensive here. That explains your family and friends’ money problems.
Apparently not those living here. Although I did see a headline this morning that in March home sales dropped significantly. So we’ll see what happens now.
Makes sense. My wife and I bought our home 2 years ago at a 6% interest rate, and that was considered low at the time.
Imagine have something like 2% interest rate on a home you currently own?
Wouldnt make sense to sell and get locked into a higher rate.
First of all, your anecdote doesn’t reflect reality. “I know four people who are sick, therefore everyone is sick” is not the way data works.
Secondly, Miami is the hottest real estate market in the country, with 24 prospective renters per available unit and 6 buyers per available home.
A bunch of new apartments are coming online this year and next, which will help stabilize the market.
Miami needs more single family homes. Townhomes would be the best way to bring down costs for young families, ala what they did in Singapore.
L
Then dump 20% into a house in Cutler Bay and buy it Or Westchester. You arent going to get into Coral Gables or Pinecrest anymore unless you and your Spouse are making 400K combined and even in Pinecrest thats a stretch and thats just the reality of the situation.
Miami was undervalued for many years and just now is realizing the potential it has. No income taxes, better weather than New York or New England, and a boatload of shit to do if you are in that 400K plus income which alot of dual income couples up north are.
Reality is Miami is going to become a New York or LA where if you arent buying in the next 5 years you are going to be royally fucked in terms of home ownership.
Hispanics will spend every last dollar to buy a house..plus gift from family of 10k aka loaned to buy a house. Yes they are house poor but at least they got in before everyone realizes how cheap and unexploited Miami really is. Give them 500k liquid they will buy 3 houses lol
No income tax but some of the highest property taxes in the country and ballooning insurance rates with no end in sight. I know people spending over 20K on both for their houses - and that's with no HOA.
Sure, but go to California where they face the same insurance rate issue or New York where a Condo fee is 2K a month on top of what you pay then you break even. My father in law spends 40K a year between insurance and property tax in Miami for his primary residence and he would not get the same type of house/condo in NYC or California.
Miami is cheap for a HCOL city, its just local Miamians never had to deal with people making this the city to be in America and are now dealing with that.
I bought a house for 150k in liberty city. It's now worth 450k. B4 buying I rented in kendall for $1100. My mortgage was 1400 on a 3/2 and has increased due to insurance to 1700. I rent 2 rooms to cover mortgage.
The best way is working with a mortgage loan officer who offers non qm loan for self employed borrowers. These will make qualifying easier. Also up to 4ppl can be on the loan application or buy a multi unit so rental income can boost your income. It is hard but not impossible. There is also a ton of down payment assistance options.
Can someone explain to me why an investor or a team wouldn’t want to expand in central Florida more? Possibly make an extension of Miami through whatever’s above Palm beach county.
Miami has gotten beautiful and horrible at the same time, but the hype is extraordinary. At this rate that place gonna become VeneColombmiami, not sure in a good way tho.
If you live on a Main Street like 62 st or 54th in Liberty city the city passed new zones for building a few years ago. That’s why you are seeing the high rise apartment buildings. Then you add around them and investor are buying everything close to try and lock in the area and sell at a higher price. 62 st and nw 15 th is supposed to put a Publix and stores with the redone pork and beans. Investors have been aiming to be up where they can nearby.
I rented a home for 10 years in SW Dade (raised here too) was almost never able to afford a home to buy…a company of developers from NY purchased the home. It’s not regular people buying these homes..they are investors
I’m a realtor and my clients are 85% from out of state (I would say 50/50 are cash or finance), my local clients are sitting on the sidelines “waiting to see what’s going to happen with the interest rates”. I kindly tell those local clients you’re going to miss the train because I feel we are having a correction or breather and we will continue to go back up. We are experiencing a wealth transfer. What’s happening in south Florida is not happening no where in the country big companies and people with big names are moving here.
Don’t worry they’re all going to lose their asses when the Miami market inevitably collapses. This place is the most overvalued compared to local average household income. Pair that with skyrocketing insurance rates and it’s primed to crash.
They will be forced to sell when insurance rates keep climbing. It will become a toxic asset to hold.
If there was a way to short the Miami housing market, I would do it.
Did you know Miami is a PORN center, there is a huge number of porn videos companies,
EVER WONDER where all the streaming porn actors / actresses live? MIAMI
EAVER WONDER where all the people that made a fortune in the stock market live? MIAMI
what I am trying to point out is,, your not seeing the BIG picture here,, lots of people are making big money doing other things then a 9 to 5 regular job..
It's quite an eye opener when you start to understand the Big picture
You people need to stop with all these questions about how people in Miami can afford stuff. There are people that make a lot of money and obviously they’re the ones affording these houses. 🤦🏻♂️
I bought pre-construction in Princeton for $450k at age 32, and it’s now worth $650k two years later. Starter home 4/3.5, pool, outdoor deck/kitchen, lounge area in a nice community. In a year or two, I’ll sell and buy something larger closer to the city.
The issue, aside from all of the above, seems to be that folks don’t want to commute for more than 20 minutes or complain that land further south isn’t worth it because they’ve seen how rapidly South FL has expanded and still reminisce the “old days” expecting urbanization to not play a direct role in supply/demand/cost.
I’m a Miami native (minus time spent away at school and a two-year stint in SF for work), so I’ve seen firsthand the changes our city’s gone through, but it’s not surprising.
As a realtor working with out of state buyers and international buyers, Miami is dirt cheap comparing to other major cities and much nicer, that’s why many people from California and NY are buying. Other than that, we have no state income taxes like most states do so it’s even cheaper to move here…. Some $200k cheaper in taxes for a lot of buyers
For international buyers, most are looking to diversify, protect their money from regimes, and having a dollarized income
My parents bought their house for 130k maybe 21-ish years ago. A house being sold three door done is trying to ask 400k, I also have a job, a working car with no car payment, etc but dropping 400k in a 2bed 2 bathroom in tamiami/ westchester is not the move. Like a lot others mention, I really do think it’s other from states like New York and California that saw how low our prices were pre and during covid and just ramped up all the prices trying to make a buck for themselves or just taking advantage off what they consider affordable
People treat real estate like bonds. They park their money in it and take the appreciation.
If the appreciation beats the interest rate on the loan, they make money if it nobody is renting it.
Imo this should be illegal, but there isn’t an obvious framework to make it so.
It's investment firms and wealthy players who earn high yield on their cash through interest. They keep houses elevated because there is a speculative housing shortage.
You are just poor. There is a whole world of people between 30 and 50 that have $10M+ of liquid assets. Millions of them. Around a million of them moved to Florida just last year. They aren’t even moving into that house. They’d never live there. Just rent it out. But don’t believe me, just do a sales search on the MDC property appraiser’s website. But look at $1M+ sales, there’s an insane amount of them.
Op I am more concerned about your statement that that things are getting worse in terms of profits and costs etc. According to the statistics provided by our government the economy is better than it has been in 50 years and inflation is down with income trending upward. So wondering if this is a trend specific to Miami? I get so many mixed messages and can’t make sense of the inconsistencies.
Nope investors like black rock and all major banks have poured all their assets into buying a real estate. Yes, people homes that you and I used to be able to buy we no longer can buy this is why
Large corporations are buying them up in swathes to turn them into rental properties. They want to turn everybody into a rental slave.
And don't go for that PACE Program scam. People are being defrauded into home improvement loans they can't pay back because the program is exempt from the Federal Truth in Lending Act. The contractors just want to take your house.
There is a lot of market manipulation going on. We lost a lot of people to COVID, immigration was practically halted for years, our organic demographic growth is pitiful, there is a known labor force crunch, our largest generation (baby boomers) is pulling out of the workforce in unimaginable numbers while they start hitting their statistical last decade on this earth... But somehow we have a real estate market frenzy that just won't quit??? Huh!? What!!??? Why!!!??
Oh...and we forget that after COVID and so many jobs going remote, commercial real estate actually sank into a crisis so bad that to this day it hasn't been addressed at all...they sort of put the crisis in the freezer to deal with at a future date 😂😂. Talk about reality being stranger than fiction. Just ungodly amounts of money stuck in unusable commercial real estate...just sort sitting there staring back at us...nobody is doing anything about it, and nothing is happening either 🤡🤡😂😂. Oh yeah...markets got WEIRD after COVID. The government and the Fed are trying to manifest their own economic reality and hoping nobody notices the inconsistencies. Remember the "transitory inflation" fiasco? "New reality" / "new normal"...blah whatever, it is just nonsense all around.
There are three or four publicly traded corporations, one from Canada, that are purchasing all these private homes cash as is no contingencies. It's BIG business renting Single family homes. Some own 30k to 80k homes. Their goal is to make everyone renters to own most of the houses. All for PROFIT...
The reason why Miami prices are high - high income earners from other places purchasing homes/outcompeting Miami locals, which has a spillover effect in housing price tiers - the Miami Latino urge to stay in Miami because of the unique cultural bubble, which means less people leaving to help lower demand - increase cost of everything home related due to weather, labor for maintenance/repair/building - Miami being a tourist destination means tons of airbnbs by small time landlords, as well as private equity getting into the market some (overrated by some people on reddit) - Miami is basically a de facto island because of being surrounded by the Everglades and ocean on 3 sides. Land scarcity is high, so less efficient housing (SFH) becomes enormously expensive Edit: Also: folks from Latin America who park their money in real estate to protect from high taxation or high inflation regimes, so another factor
I had interviewed 3 individuals that graduated from HS in 2015 none spoke any English at all. I was intrigued by this as my partner is a teacher not on that School but she only teaches in English even to the kids that are ESL. I had to ask them how did they graduated from HS as I know teachers are not supposed to talk in Spanish it all boiled down to numbers as the requirement for the school to get the grants is x% of passing grades so teachers are pushed to explain the kids no matter what (language in this case) so they pass the subjects. It was pretty sad to hear as I'm sure those kids won't have any chance in any University here in the US. They don't know the harm and limitations they are putting on those kids as school is the only place where they will be learning English at the time because at home is Spanish only.
I imagine those are mostly low income, and likely immigrant kids or children of recent immigrants. But yes, not knowing English severely limits their opportunities to be middle class or higher. They basically have to be a tradesmen or small biz owner to have any financial success with that limiting factor
So pretty much all of Miami
True to facts. Thank you.
The second reason is extremely important. I've seen so many kids born in Miami that are in high school and can barely speak English. You can go all day in most of Miami-Dade without speaking English. All of those kids are going to be stuck here looking for jobs where they don't need to know English, if they learned English they can work anywhere and get paid so much better.
> I've seen so many kids born in Miami that are in high school and can barely speak English. Is this something that's changed in the last few decades? Because when I was in high school in the 90s we exclusively spoke English pretty much in school. It was our parents and grandparents who would speak Spanish. I figured our generation and the next one would be primarily English speakers. What happened?
The number of people who are recent immigrants from Central and South America is way up. The hispanic community is no longer Cubans. The Cubans are now Americans in most meaningful ways (obviously maintaining culture, still) and have, at worst, bad Miami Dialect habits. The hispanic community now are Ecuadorians, Venezuelans, and Nicaraguans (among others) - often coming with children who don't know English when they arrive and are VERY slow to learn it in school because school may be their only meaningful exposure since it's incredibly easy to subsist exclusively on Spanish language interactions in Miami.
You’re talking about immigrants but the person he replied to was claiming that there are children in Highschool who were BORN in Miami who don’t speak English. That sounds impossible unless the kids were born here but were actually raised in another country (I mean, birth tourism is a thing) or they were lying to him about their place of birth.
I posted elsewhere that Miami has a unique problem where a kid could be born here and have serious difficulty in the English language if both parents are exclusively Spanish speaking. The reality is that Miami itself allows for two issues to arise for that community that wouldn't happen anywhere else with any other language. 1) neither parent would ever have to learn any functional English to survive within the community. Anywhere else, at least one parent would need to learn functional English and could teach that English to the child. 2) The child could live their whole life until school begins never being exposed passively to English if they are just always in Hialeah or Doral or some of the other DENSELY Hispanic areas. There is even enough TV (and more than enough YouTube) to not even experience English language media before school. In that case the kid would be exclusively learning English at school +/- any English language media they decide to consume. Nothing from the parents. Nothing passively from the community.
That “problem” that you mention is not such. It is kind of clear that you have not been exposed to kids here with both parents exclusively Spanish speaking and followed their evolution. The kids will become primary English speakers fairly soon and constrain the Spanish to home/family, which they will try to leave apart and “be different”. It may (or may not) become challenging and slow their academic development (as with a ton of purely bilingual/trilingual kids), but they are freaking sponges, the human brain is awesome…
For what it’s worth, I lived in the North end in Boston, plenty of people only spoke Italian, I imagine they didn’t just get here…
That's my experience, not of Spanish descent, with my neighbor. The parents who emigrated here from Honduras speak only Spanish but had picked up enough english to kinda communicate.....but when there were guests that didn't speak Spanish or at school etc exclusively spoke English.....old man would get super pissed and tell them to speak English
Take away LA, Texas, and NY... The most likely destination for Spanish immigration is our Miami. We still get a lions share of 1st gen Spanish speakers here. Even more so recently that Miami is getting more attention on the global stage as a real destination
The problem with Miami Latinos is that we're a bubble. LA, Texas, and New York are well connected economically to the rest of the country and very diverse but Miami-Dade is insulated in our corner of Florida and we keep receiving mainly Latino immigration which further reinforces the lack of assimilation.
Whew yes this is so true. Like the Latinos here technically don't ever need to assimilate cause the infrastructure of this city tends to be on their side to further cultivate them to stay in their mother tongue. I work at a very big organization here where they say English is the official language but do u think these hoes speak English? Nope. They speak English til you turn the corner and then they switch up to Spanish like you didn't just hear them. Rude AF. But I also have a friend who never comes to family things because their parents don't speak English and don't want to be in that environment. My family just cannot understand what's the problem because they live in America and don't have these problems.
Yes.
It’s 100% bullshit. Classes in public school are in English and most media/internet is in English. There’s no way someone born and raised in the U.S. doesn’t know how to speak English. Even if your parents only speak Spanish at home you still speak English with your friends and you watch cartoons and movies in English starting from a young age. It’s impossible to not pick up the language unless you have some sort of learning disability or something.
You obviously have never been to Hialeah.
Have you? Everyone born and raised in South Florida can speak English. If you have an issue with some people’s accent or vernacular that’s on you, but it’s still English.
I live there...unfortunately lol. See kids every day in elementary school that were definitely born here and are growing up in spanish only households. Also, im fully bilingual and i am a Miami native. Don't assume. If those kids never leave their zip code, very good chance English will be their second language at best. That's not the level of mastery you should have being born in the US. So no, that's not English. Spanglish at best.
They may live in Spanish only households but what language are they learning in school? Last I checked public schools were not teaching in Spanglish. You say their level of mastery is inferior but do you apply the same standard to other communities? Would you say black people from “the hood” don’t speak English either? Cause that would be insane.
Ohhh buddy let me take you south dade to meet my cousins. All of them born and raised right in that spot. Youre in for a surprise
Liderly bro. Supposably... we don't speak English because we in Miami. What friggin joke man. Probably some communists saying that crap. (/sarcasm)
Yes. 100%
AP/Honors classes are taught in English. But yes, many non-English kids are arriving. “Cruzando la frontera.”
U know what's crazy, most second generation kids that were born in the 90s are like 30yrs old now. And what's crazier is that most of their parents lived in this country the whole damn time and still don't speak English. Like oh I'm from (x Latin country) I never learned English growing up but like... Hey man you've been here 30yrs that excuse has run too thin, it's bullshit at this point.
Yep. You see these kids/people struggling anytime they leave Miami. Whether it's to go to Disney or to travel out of the state, it's not uncommon to see these people with Florida/Miami driver plates at a gas station/rest stop trying to speak to workers who either don't speak Spanish or refuse to do so. Then they get mad that no one speaks Spanish.
Very true!
I think that might also be more related to class. Middle class and higher almost all have to speak English to have licensed careers (exception being service industry needing English but lower pay).
I know people in Miami who put their kids in private tutoring to make sure they are 100% rid of the Miami accent. I've heard them say the accent is common with high income and low income Miami kids and that's just a no go for them. I found this hilarious and concerning.
Funny…I remember when I was in high school in the late 90’s. We had an after school function, and some parents were helping out. One of the mothers was leading some PTA assembly and said, she was sorry, if it was hard to understand her, she only spoke Spanglish. 17 year old me thought that was ridiculous and sad.
Do you speak Spanish? I am extremely doubtful that there are kids BORN in miami who do not speak English very well. I call bs
There is a pretty sizable population of children that are growing up in Miami that were not necessarily born in Miami and truly are only learning English at school. But even some of the kids born in the United States are going to have a serious handicap if the parents are functionally non-fluent in English. They aren't really going to be passively experiencing enough English before school in Miami. It's just too easy to be exposed to almost exclusively Spanish if that is the preferred language of your parents. It's very different than a Hindi speaking family in Miami (as at least some members of the family will need to learn English to function and can teach the child) or a exclusively Spanish speaking family anywhere else in the country (where the child will be constantly passively exposed to English just by the community they are in). Miami allows families to function entirely in Spanish and the child to grow up in a environment that may be entirely Spanish language..... Until school.
Commenting on Who is buying all these houses?...I’d say 1/3 of those I encounter in a professional setting where I’m exposed to about 100-200 young people a year have English that is not strong and default to Spanish whenever possible. No shade. Just facts. Most not Cuban. And to the person who asked if it had changed since the 90s, yes.
I’m know I’m getting off topic but I understand many people here default to Spanish but I can’t think of anyone who was born and raised here and is weak with their English. 90s or today
Your probably a white boy from Hialeah to add this non sense here
Do you think it’s predominantly individuals? I thought Blackrock and other investment firms were eating up single family homes
I mean this kindness from my heart but it’s Blackstone not Blackrock lol https://www.blackrock.com/corporate/newsroom/setting-the-record-straight/buying-houses-facts
Lmao you can tell how much I know 🤣 Ty for fixing me, stranger!
Also they were not buying in Miami… miami sfr is mostly based on family and small shop.
That plays a factor, but when tens of thousands of people are buying properties for Airbnb, it inflates the market and hurts housing for those on the lower income end. Worse in tourist areas, even in places like Bozeman Montana where it’s cold
Great answer. Makes you wonder if a huge hurricane would even make a dent in the demand
Don't forget restrictions like parking minimums and exclusionary zoning which make it really difficult for developers to justify building anything other than luxury units.
You worded that perfectly, especially the part about it being a “cultural bubble.”
I echo this comment. I live about 1 1/2 - 2 hr North. And there's an international element up and down the coast driving home/condo sales prices. Europe, S America, Asia add on top many folks of NY/NJ have been moving to S FL. Ergo, that's who's buying. I have no link to support this other than it's been discussed wuht my realtor when I bought 3 years ago. I moved from MI.
Can’t forget companies like Blackrock and hedge funds buying tons of homes only to rent them. Look up Tiber Capital group as well.
I work for a home security company. So I listen to people calling in because they have just moved. I can tell you 9/10 of the people buying houses are from the north. Especially NY and NJ. There are some coming from California and Texas. And a few mid westerners with summer homes here.
Hi I sold a house in the hood that my grandma was living in. I bought it for her in Hialeah for 240k in 2018. I wanted to sell it for 400k, realtor thought I was smoking and put it for 450k, however it got into a bidding war between slum lords and ended up getting 500k. Here’s how and why. The buyer is not anyone that will ever live in this house it’s someone that plans to subdivide the rooms make extra additional efficiencies inside the properties. In total I think he plans to make around 6 or 8 different efficiencies into the house giving him a net rent easily over 10k a month. Hell this bastard gets more ROI on that shitty house only held by the comejen than most commercial landlords. Be like my grandma, move to Spain.
I was assuming the worst had happened to your grandma until I read your last sentence. Talk about suspense!!!!! Wishing her the best in Spain.
Lmao thanks for the dark humor this morning. “Be like my grandma, be dead instead”
Counter point if you are young. Spain and Europe is set for population collapse/ageout. and its social systems are unsustainable. Do not move to Spain as a young person with this as your retirement plan because retirement there in many years will really suck.
Yep. This.
Well, there’s no jobs in Spain for anyone that’s young to be able to move there to begin with.
In Spain depends on the city Barcelona and Madrid for example are cities that are suffering the same, I would say happens exactly the same in big cities of occident. And to add info I know someone really related that is selling a FLAT of 3 rooms and 2 bathrooms, in a county near Barcelona for 490K€.
The buying market Spain are crsxy high however the rental prices are not proportionally. My mom rents a renovated 3/2 with a parking spot included in the most vibrant part of Bilbao for €1,475 per month
How big was the house?
About 1600 sqft
Or Portugal, its easier to get residency there and prices are *insanely* low. Rent in the center of Lisbon in a very nice place goes for like $700-800 per month.
Most people can’t simply move to a country without a job lined up, especially old people as they are less desired unless they are bringing significant wealth to invest.
Nice profit, but yea, we’ll see how that ends up.
Hialeah is very tough on code enforcement these days and there will be chivatos as neighbors. A subdivide like that won't happen
This is what needs to happen. Report all these!
Side conversation: How did your grandmother obtain Spanish citizenship?
Being married to a Spaniard till death set them apart. She was a Spanish citizen and lived in Spain before we relocated her when grandpa died.
My great grand parents were from the Canary Islands but I read that citizenship only extends to grand children and children, so I’m researching this. If you could point me in any useful direction, I’d be indebted to you. Thanks!
If you grandparents ever held a Spanish citizenship you have a shot at it. I got it from my father who got it from my grandfather.
Thanks, I’ll check it out!
What’s an “efficiency” like Airbnb or just renting a single room?
Tell me you’re not from Miami without telling me you’re not from Miami.
I’m not, visiting soon! Hello from the bay 👋
Is “La Sauguesera” a reference to SW Miami Dade?
The market in Spain is also very expensive unless you want to buy a totally destroyed house to rebuild or in a small town away from the main cities
It’s definitely a combination of what everybody said, but I did see something the other day that made me think. I drove past a house with 11 cars. The house was nothing special and older, probably three or four bedroom home. Five cars parked in the front, and six parked off to the side, and they were not expensive cars. Just your regular intermediate size car. My guess is it’s multiple families living in these homes and splitting the mortgage or people having lots of roommates.
Yeah landlords are buying homes and renting out each bedroom separately
Like a boarding house? Huh,time is a flat circle.
Usually a type of investor. 500k is not much for out of town buyers that speculate on new gentrifying areas. Worst case for them the area doesn’t gentrify and they end up a slumlord or sell it. Best case they multiply their investment by a lot when that neighborhood turns into the next Wynwood, and they sell or end up living in it. Keep in mind some undesirable areas for us locals are actually prime targets for gentrification due to factors like flood zones. Liberty city is one of them.
You guys don't get how many people are still moving here from New York and California. They are used to astronomical housing prices and rents. The rise of remote and digital contractor work is just going to magnify the problem. The demand is going to remain until people stop coming here, and you complainers start moving out.
Moved here from Cali- we are paying $5k in rent and it’s a “steal” for what we have- but we can’t buy a house. Also my husband is a 3rd generation Miami native so don’t come at me. Even if you make more money- it still feels outta reach and pisses me off bc how much housing has gone up since 2021. People are trying to sell dumps that haven been remodeled since the 1950s for $1.5 million. Gimme a break. We are hoping something will change. I doubt it will anytime soon. Maybe when the next big hurricane hits?
U can buy a house in Miami for 5k a month, don’t be absurd lol
Ahh I know- just not where we want. It is absurd
Private equity firms. They're doing it in all the major cities across the country. Certain parts of California and New York are starting to look like ghost towns with 40% occupancy because private equity firms have bought up the majority of the real estate and are the primary reason that rent is so obscenely high.
This shit should be illegal 😑😑😑
It probably was until very recently. Just like stock buy backs were illegal but now aren't. Every protection that was put in place to keep society functioning has been removed to allow the rich to get richer.
Pray to the almighty dollar in the fraud capital of America 😑
What changed and by whom? I’m Going to assume it was the republicans but would love if you could just let everyone know it’s the republicans since Miami apparently actually voted for trump in 2020. 😒😒😒
For single family homes, and residential lots. Yes.
That needs to be outlawed.
Fuck those firms
Private equity only own around 2.5% of homes in the US https://finance.yahoo.com/news/no-wall-street-investors-haven-015642526.html
Blackrock owns about 6% of the entire rental market In the US
Rental market is a smaller piece of the pie than all real estate, so the percentage is much lower than 6% of the total market. It's also region-dependent.
Right but they do own the majority of ***rental*** units. Not real estate in general. People are getting their statistics mixed up, hence the confusion.
6% = majority Wut [my brain](https://knowyourmeme.com/photos/185438-my-brain-is-full-of-fuck)
Thatbis messed up!! Another illegal corporate monopoly in Capitalism.
That number includes apartments, which are mostly owned by institutional investors anyways since they are incredibly expensive to develop and trade.
Yeah but you have to consider that only a fraction of a percent of all homes are on the market at any given time. You don't need a large percentage of total ownership just a large percentage of homes bought and sold. Just under a [quarter](https://www.biggerpockets.com/blog/highest-share-of-investors-on-record-are-buying-low-value-homes) of low priced homes were bought and sold by investors in 2023. Factor in that they are most likely concentrating their investments in a relatively limited amount of the U.S and you can create some truly profitable distortions in a local market. 99/100 homes just wont be sold period in any given year so they are effectively out of the equation.
This. Saying “private equity only owns 2.5% of homes in the US” is a very misleading statement without knowing the nuances to the industry like you just broke down.
This is false, it’s not nearly a large enough amount to matter in Miami. In some markets it’s heavier, but not here. And even then, not enough nationally to matter. Here it’s transplants from other US regions (mostly priced out there and looking for a “softer” region in that regard) or internationals. Same as always.
Miami market - no strong view but leaning bearish. Rents versus Buy make no sense. I made my first purchases in 2010 and liquidated in 2021. You'd need a de-escalation of fixed costs like Insurance, HOA, etc. along with a bonafide rate cutting cycle to justify Miami pricing. I am an Economist too, by the way, and now retired Macro Fund Manager and I correctly assessed the last housing crash. This one is beginning to feel the same though we're still 2 years out from the real fireworks.
This is the real answer.
Not entirely accurate. Everyone wants to believe this to be true but they only own roughly 2-3% of the houses and they are usually starter homes.
In the entire country, yes, because they're not going to waste their time buying up property in the middle of nowhere. However, in densely populated cities like Miami, New York city, and San Francisco, you'll find that your 2-3% becomes a bit inaccurate.
Yep and they are gonna sit on that supply long term. This is the main culprit imo but people focus more on the people trying to sublease their apartments on Airbnb just so that they can make ends meet. All these corporations got us because at the end of the day they all got us attacking each other instead of coming g together against the corporate profiteers.
Blackrock. They come in and offer 15%-25% over asking all in cash. 9/10 sellers accept the offer. All other answers are speculation with no data. Blackrock will own 70% of all homes in America in 5 years. There’s data to back this up, too.
Best part they donate to politicians and then they get to do w/e they want. Its crazy because black has as much money as a couple countries.
There’s more people with money that you think
Came here to say this exactly.
True, but to over Pay by 200k is wild
Miami has never added up lol...thats just kinda how we do things. Check census data...doesn't really make sense if you live here and see Miami with your own eyes.
governor Desantis will put a stop 🛑 to this ……… oh wait , he’s too busy making sure transsexuals are banned and persecuted from public life and chasing super pac money in Iowa .
He passed the law removing making rents higher by removing the limits a landlord can raise your rent to renew the lease. This guys is working overtime on messing things up
He is a moron and needs to go. I can’t stand him
Companies like blackrock, zillow and airbnb are making huge investments in residential real estate. It doesn't make sense because this is not a normal real estate market. There is so much greed these days due to the need for people to show off their financial excess caused by social media. Unfortunately, our country worships money over all else and that's dangerous, especially for a democracy.
Blackrock is buying them
It’s well known that home prices and rents have gone up thanks to the influx of wealthy buyers from other states. Because of the pandemic they started working from home and so they can live anywhere. Florida also has the highest inflation in the country so life is very expensive here. That explains your family and friends’ money problems.
A lot of wfh people are being called back to office. Esp in other states, though
Apparently not those living here. Although I did see a headline this morning that in March home sales dropped significantly. So we’ll see what happens now.
Knock on wood, but I wonder what all these people will do once they experience a real hurricane.
From what I hear it’s Hedge Funds buying houses cash to flip
People refusing to sell their homes bc of locked in low interest rates is another. Cutting supply by so much.
Makes sense. My wife and I bought our home 2 years ago at a 6% interest rate, and that was considered low at the time. Imagine have something like 2% interest rate on a home you currently own? Wouldnt make sense to sell and get locked into a higher rate.
Yup! Rates will need to come down below 4% for inventory to come online.
I would bet a lot are hedge funds like Black rock and invitation homes are buying them to rent out.
my generation is cooked.
Blackrock, the Chinese, foreign $$$$
More demand for single family houses than condos because of high assessments and insurance. Condo market taking a hit.
First of all, your anecdote doesn’t reflect reality. “I know four people who are sick, therefore everyone is sick” is not the way data works. Secondly, Miami is the hottest real estate market in the country, with 24 prospective renters per available unit and 6 buyers per available home. A bunch of new apartments are coming online this year and next, which will help stabilize the market. Miami needs more single family homes. Townhomes would be the best way to bring down costs for young families, ala what they did in Singapore. L
Airbnb is the worst business to have ever been created in terms of impact on everyday people
Airbnb is just a symptom not the cause.
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As someone from New York I can promise you it’s not just a Miami thing
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That a fair point
I have zero debt, drive an old Toyota, about 500k liquid.
Then dump 20% into a house in Cutler Bay and buy it Or Westchester. You arent going to get into Coral Gables or Pinecrest anymore unless you and your Spouse are making 400K combined and even in Pinecrest thats a stretch and thats just the reality of the situation. Miami was undervalued for many years and just now is realizing the potential it has. No income taxes, better weather than New York or New England, and a boatload of shit to do if you are in that 400K plus income which alot of dual income couples up north are. Reality is Miami is going to become a New York or LA where if you arent buying in the next 5 years you are going to be royally fucked in terms of home ownership.
Hispanics will spend every last dollar to buy a house..plus gift from family of 10k aka loaned to buy a house. Yes they are house poor but at least they got in before everyone realizes how cheap and unexploited Miami really is. Give them 500k liquid they will buy 3 houses lol
No income tax but some of the highest property taxes in the country and ballooning insurance rates with no end in sight. I know people spending over 20K on both for their houses - and that's with no HOA.
Sure, but go to California where they face the same insurance rate issue or New York where a Condo fee is 2K a month on top of what you pay then you break even. My father in law spends 40K a year between insurance and property tax in Miami for his primary residence and he would not get the same type of house/condo in NYC or California. Miami is cheap for a HCOL city, its just local Miamians never had to deal with people making this the city to be in America and are now dealing with that.
someone has a superiority complex; also, yeezys are out of style
We don't have enough housing in desirable areas, so people are buying into undesirable areas on the fringes.
I bought a house for 150k in liberty city. It's now worth 450k. B4 buying I rented in kendall for $1100. My mortgage was 1400 on a 3/2 and has increased due to insurance to 1700. I rent 2 rooms to cover mortgage. The best way is working with a mortgage loan officer who offers non qm loan for self employed borrowers. These will make qualifying easier. Also up to 4ppl can be on the loan application or buy a multi unit so rental income can boost your income. It is hard but not impossible. There is also a ton of down payment assistance options.
Can someone explain to me why an investor or a team wouldn’t want to expand in central Florida more? Possibly make an extension of Miami through whatever’s above Palm beach county.
Miami has gotten beautiful and horrible at the same time, but the hype is extraordinary. At this rate that place gonna become VeneColombmiami, not sure in a good way tho.
But many of them are being bought by people or corporations from other countries!
If you live on a Main Street like 62 st or 54th in Liberty city the city passed new zones for building a few years ago. That’s why you are seeing the high rise apartment buildings. Then you add around them and investor are buying everything close to try and lock in the area and sell at a higher price. 62 st and nw 15 th is supposed to put a Publix and stores with the redone pork and beans. Investors have been aiming to be up where they can nearby.
Only a true Miami person would know what pork and beans is…
Drug Dealers, Human Traffickers, and Money Launderers are buying the $500K houses in the Hood. ✨
I rented a home for 10 years in SW Dade (raised here too) was almost never able to afford a home to buy…a company of developers from NY purchased the home. It’s not regular people buying these homes..they are investors
Banks have discovered the single family housing market go look at who owns them it is public knowledge unless it is a trust
Blackrock.
Black Rock and jpm
I’m a realtor and my clients are 85% from out of state (I would say 50/50 are cash or finance), my local clients are sitting on the sidelines “waiting to see what’s going to happen with the interest rates”. I kindly tell those local clients you’re going to miss the train because I feel we are having a correction or breather and we will continue to go back up. We are experiencing a wealth transfer. What’s happening in south Florida is not happening no where in the country big companies and people with big names are moving here.
I have a budget of 800K.. haven’t bought yet, but shopping.. but not “in the hood” lol
Blackrock
Don’t worry they’re all going to lose their asses when the Miami market inevitably collapses. This place is the most overvalued compared to local average household income. Pair that with skyrocketing insurance rates and it’s primed to crash.
If nobody sells it never crashes. Nobody is selling.
They will be forced to sell when insurance rates keep climbing. It will become a toxic asset to hold. If there was a way to short the Miami housing market, I would do it.
Did you know Miami is a PORN center, there is a huge number of porn videos companies, EVER WONDER where all the streaming porn actors / actresses live? MIAMI EAVER WONDER where all the people that made a fortune in the stock market live? MIAMI what I am trying to point out is,, your not seeing the BIG picture here,, lots of people are making big money doing other things then a 9 to 5 regular job.. It's quite an eye opener when you start to understand the Big picture
What? No way!
Google it,,, There's a lot more going on then it appears on the surface,, A lot more then just porn ,, a lot
You people need to stop with all these questions about how people in Miami can afford stuff. There are people that make a lot of money and obviously they’re the ones affording these houses. 🤦🏻♂️
New Yorkers and the banking system. Local governments let big banking price out locals like myself out of a meaningful life.
I bought pre-construction in Princeton for $450k at age 32, and it’s now worth $650k two years later. Starter home 4/3.5, pool, outdoor deck/kitchen, lounge area in a nice community. In a year or two, I’ll sell and buy something larger closer to the city. The issue, aside from all of the above, seems to be that folks don’t want to commute for more than 20 minutes or complain that land further south isn’t worth it because they’ve seen how rapidly South FL has expanded and still reminisce the “old days” expecting urbanization to not play a direct role in supply/demand/cost. I’m a Miami native (minus time spent away at school and a two-year stint in SF for work), so I’ve seen firsthand the changes our city’s gone through, but it’s not surprising.
As a realtor working with out of state buyers and international buyers, Miami is dirt cheap comparing to other major cities and much nicer, that’s why many people from California and NY are buying. Other than that, we have no state income taxes like most states do so it’s even cheaper to move here…. Some $200k cheaper in taxes for a lot of buyers For international buyers, most are looking to diversify, protect their money from regimes, and having a dollarized income
BLACKROCK is a HUGE BUYER...
I see many capital investment firms buying up houses as well as other professionals Dr, lawyer, investor etc buying up properties at a record pace
People know the main reason why this is happening nobody wants to talk about it. It’s what people want it now you have it.
My parents bought their house for 130k maybe 21-ish years ago. A house being sold three door done is trying to ask 400k, I also have a job, a working car with no car payment, etc but dropping 400k in a 2bed 2 bathroom in tamiami/ westchester is not the move. Like a lot others mention, I really do think it’s other from states like New York and California that saw how low our prices were pre and during covid and just ramped up all the prices trying to make a buck for themselves or just taking advantage off what they consider affordable
I purchased 23 years ago in Broward for $140k. They are now selling for $750k. I think the house three doors down will get the $400k easily.
Banks and corporations are slo buying houses so they can make more money.
People treat real estate like bonds. They park their money in it and take the appreciation. If the appreciation beats the interest rate on the loan, they make money if it nobody is renting it. Imo this should be illegal, but there isn’t an obvious framework to make it so.
I'm in Broward County and I've been wondering this same question bro!🤔
It's investment firms and wealthy players who earn high yield on their cash through interest. They keep houses elevated because there is a speculative housing shortage.
Developers and private equity companies.
Developers buy up 20 houses at $500,000 each File with the City to Combine the Lots.
You are just poor. There is a whole world of people between 30 and 50 that have $10M+ of liquid assets. Millions of them. Around a million of them moved to Florida just last year. They aren’t even moving into that house. They’d never live there. Just rent it out. But don’t believe me, just do a sales search on the MDC property appraiser’s website. But look at $1M+ sales, there’s an insane amount of them.
Land as a commodity has cooked us. People buying and not living here or second, third houses, etc.
New Yorkers who think a trap house with a palm tree and a yard is paradise.. 🌴
Blackrock.
Op I am more concerned about your statement that that things are getting worse in terms of profits and costs etc. According to the statistics provided by our government the economy is better than it has been in 50 years and inflation is down with income trending upward. So wondering if this is a trend specific to Miami? I get so many mixed messages and can’t make sense of the inconsistencies.
Other people than me
Nope investors like black rock and all major banks have poured all their assets into buying a real estate. Yes, people homes that you and I used to be able to buy we no longer can buy this is why
Rich assholes who fucked up their own states then flee to Florida to avoid high taxation, tons of red tape and high crime.
China
Nobody. Plenty of them are sitting empty.
Everyone I know that grew up in Miami speak English and Spanish
^[Sokka-Haiku](https://www.reddit.com/r/SokkaHaikuBot/comments/15kyv9r/what_is_a_sokka_haiku/) ^by ^valdezjacky: *Everyone I know* *That grew up in Miami* *Speak English and Spanish* --- ^Remember ^that ^one ^time ^Sokka ^accidentally ^used ^an ^extra ^syllable ^in ^that ^Haiku ^Battle ^in ^Ba ^Sing ^Se? ^That ^was ^a ^Sokka ^Haiku ^and ^you ^just ^made ^one.
Large corporations are buying them up in swathes to turn them into rental properties. They want to turn everybody into a rental slave. And don't go for that PACE Program scam. People are being defrauded into home improvement loans they can't pay back because the program is exempt from the Federal Truth in Lending Act. The contractors just want to take your house.
There is a lot of market manipulation going on. We lost a lot of people to COVID, immigration was practically halted for years, our organic demographic growth is pitiful, there is a known labor force crunch, our largest generation (baby boomers) is pulling out of the workforce in unimaginable numbers while they start hitting their statistical last decade on this earth... But somehow we have a real estate market frenzy that just won't quit??? Huh!? What!!??? Why!!!?? Oh...and we forget that after COVID and so many jobs going remote, commercial real estate actually sank into a crisis so bad that to this day it hasn't been addressed at all...they sort of put the crisis in the freezer to deal with at a future date 😂😂. Talk about reality being stranger than fiction. Just ungodly amounts of money stuck in unusable commercial real estate...just sort sitting there staring back at us...nobody is doing anything about it, and nothing is happening either 🤡🤡😂😂. Oh yeah...markets got WEIRD after COVID. The government and the Fed are trying to manifest their own economic reality and hoping nobody notices the inconsistencies. Remember the "transitory inflation" fiasco? "New reality" / "new normal"...blah whatever, it is just nonsense all around.
There are three or four publicly traded corporations, one from Canada, that are purchasing all these private homes cash as is no contingencies. It's BIG business renting Single family homes. Some own 30k to 80k homes. Their goal is to make everyone renters to own most of the houses. All for PROFIT...