Many top commercial real estate firms are declaring that the combination of job growth and a diminishing supply of rental housing will make Miami one of the strongest condo markets in the country in the next year.
This prediction is based on a recent report on America's apartment and condo market, in which 42 metro areas were based on job growth, vacancy rates, construction, affordability, and rent hikes. Miami is one of the strongest condo markets in the nation.
Experts say that the recent trend of condo conversions in Miami in which developers upgrade apartments and put them on the market as a condo • is keeping Miami rent hikes from becoming unreasonable. Miami apartment owners are afraid to raise rent on their properties because of the high concentration of condo activity in Miami. Owners fear that a giant Miami rent hike will cause Miami renters to become Miami condo buyers.
Part of Miami's strong condo market can be accredited to the area's recent trends, including job growth, low vacancy rates, and a decrease in apartment supply. Real estate experts maintain that alongside San Diego, Miami is the only metro area in the country where the supply of apartments is declining. Miami apartments are being converted into Miami condos faster than new ones are being built. Faster conversion rates combined with a growing population in Miami may cause Miami vacancy rates to become even lower, leading to a further increase in demand for condos in Miami. Another factor that bolsters the strength of the Miami condo market is the number of investors that are buying condos, both natural and converted, some of which will end up reappearing back onto the Miami rental market.
