According to expert research done by Related Isg International Realty’s Ken Golden, the strength of the residential real estate market in South Florida is not only due to economic instability in foreign countries but a shift in the US population as a whole. The yearning to live in a warmer climate, the expansion of the Panama Canal and the Port of Miami, the future of the Bullet Train all contribute to the population growth in Florida daily.
South Florida is growing exponentially in numbers according to the US Census Bureau and is gearing up to be not only a continued location to invest in real estate but also an international trading hub for companies from around the world according to Ken Golden. As Miami is entering a new golden age of growth, many economic factors are contributing to Miami’s evolution and its real estate market such as the Panama Canal Effect, a multi-million dollar expansion in order to accommodate massive ships containing goods known as the Panamax cargo ships; the Port of Miami Tunnel project, a $1 billion investment; the Miami Highway expansions, which are slated to improve the commute to and from both international airports; the Port of Everglades expansion; and the high speed railway service. The importance of the Panama Canal is that these cargo ships will be able to dock at the newly dredged Port of Miami and the goods on those ships will be dispersed to their destination in a short period of time, whether it’s being transported on the newly renovated Florida East Coast Railway system or through the Port Tunnel, the imports will be delivered in a shorter period of time through Miami’s improvements to their infrastructure. “Furthermore, with trade coming in more freely, it opens the doors for other markets such as China and the Middle East to really see Miami as a power player thus attracting new business and trade which in turn will help fuel our real estate economy,” explains Ken Golden. “History shows us that decade after decade and century after century our population in the US increases heavily in waterfront communities particularly along the east coast, west coast and Gulf of Mexico.”
Florida is currently ranked number #4- in the number of people populating the United States of America (behind #1 California, #2 Texas, #3 New York). If you look at the projected path of the US Census Bureau Florida’s population in 2014 is 19.4 million and New York’s population is 19.5 million. By next year, Florida’ s population will more than likely pass New York. In the year 2020, Florida’s population will significantly surpass New York and solidly rank as the third most populated state with 21.1 million and NY with 19.6 million. “This just means the opportunity for prices and the demand for property in South Florida to increase is significant, thus contributing to the sunny outlook of real estate for decades to come,” says Ken Golden. “Key developers like Property Markets Group, The Related Group, and Key International have a demand from buyers proven via these statistics that will continue to populate their real estate and our community.” According to the latest ISG World’s report, The New Miami 2020, inventory on the MLS is a record low in which the listings on the market are on there for an average of 30- 45 days before being purchased. Condo development units currently not sold and actively selling are below 5,000 units which according to statistics of condo sales in the past 10 years on average should be absorbed in less than one year.
Florida and South Florida in particular has a long and strong road ahead of new development, new businesses opening hubs in Miami and Ft Lauderdale, and increase of international foreign investment.
“South Florida has fully recovered from the last market downturn and signs of a ” bubble ” is nowhere in sight. Developers are simply meeting the demand for the expected growth and future of this market,” concludes Ken Golden.