You don’t have to be an expert to know that the price of housing in South Florida and especially in the Miami metropolitan area is a headache for residents of this area of the country, however, a new study confirms that the Housing market is overvalued.
A new Florida Atlantic University (FAU) and Florida International University report highlights that real estate in the Miami metropolitan area is ranked eleventh among the most overvalued in the United States, when just a year ago, premiums in Miami were among the lowest.
The premium currently paid for an average home in the Miami area is around 39%, emphasize experts from FAU and other universities, including Florida International University (FIU), who are authors of the report.
At the end of June, the median home price in Miami was $458,749, according to the study.
“Home prices in South Florida have started to rise in recent months. It’s hard to know if it’s the effect of the summer selling season or the revival of price growth in the area,” said Ken H. Johnson, real estate economist at Florida Atlantic University. However, the expert explains, “the difference between the actual average and the statistically predicted prices remain stable, which suggests that the (current) increase in prices in the Miami area is probably more related to the season.”
However, the Miami metropolitan area is nowhere near the area with the most overpriced homes for sale in Florida, home to nine of the 15 most overpriced homes in the United States.
In Tampa, on Florida’s west coast, buyers pay a 42.56% premium for a home, the report says.
Atlanta and Detroit are the two most overvalued markets in the country (47.34% and 46.08%, respectively).
The rental market has also continued to rise.
According to the specialized company Zumper, the average rent for a two-bedroom apartment in Miami last June was $3,900, 32% higher than in the same month of 2022, while the average price of a one-bedroom apartment bedroom was $2,835, up 29%.
One of the effects of the high cost of living in Florida is that the state has moved from being number one to retiring.
According to a study by the financial services company Bankrate, Florida has gone from being the best state for American retirees in 2022 to number eight in 2023. Iowa is now number one, followed by Delaware, West Virginia, Missouri and Mississippi.
Figures from the United States Census reveal that 27,925 people left Miami-Dade to establish their residence in other cities in Florida or the country in the 2020-2022 period, so the question remains whether the high cost of housing is one of the Causes.
