Now’s a great time to buy a home in South Florida, especially for investment purposes. Home sales in July were higher than they have been since October 2007, according to the U.S. Department of Commerce.
The Department reports that 654,000 new single-family homes sold in July 2016, over 30% higher than July 2015.
Low interest rates combined with a strengthening economy are the major factor in the uptick in the market.
As new home sales rise, builders will be able to invest in larger commercial and multi-family residential projects, which is good news for investors. Another factor important to investors is that the homeownership rate went down by half a percent, meaning that the U.S. is flush with opportunities for rental income.
This is particularly true in Florida, where the majority of its residents are renters. The Miami Department of Numbers reports that 40.45% of Miami’s housing is occupied by tenants, while the U.S. average is only 36.9%.
The upscale rental market does particularly well because of South Florida’s world-class nightlife and proximity to the Caribbean.
Since the job market in South Florida is rife with lower-paying jobs in the retail, hospitality and healthcare industries, counties like Miami-Dade are both particularly good areas to buy low-cost rental properties.
There are plenty of opportunities for investment in South Florida, but it’s important to act while opportunities are plentiful. Take advantage of the new construction and rising inventory in Miami to get the best deal with the greatest return.