- Employment numbers continued to improve throughout the Miami region in Q2. Payroll employment grew 1.0 percent year over year from 2.28 million in 2012Q2 to 2.30 million in 2013Q2. Household employment, which grew 1.8 percent year over year in Q2, outpaced the growth of the labor force which increased by 0.6 percent over the same time period. This helped to decrease the unemployment rate from 8.7 percent in 2012Q2 to 7.6 percent in 2013Q2. July payroll employment data, released by the BLS, showed a positive employment outlook for Florida with increases in all major industry sectors.
- Miami housing markets showed continued renter demand. Multifamily housing starts grew by 62.9 percent over the past year from a 6,503 unit annual rate in 2012Q2 to 10,596 in 2013Q2. Single-family housing starts increased by only 7.7 percent year over year in Q2, well below the national average of 14.7 percent. A tight supply of single-family housing will keep renter demand strong.
- The Miami condo market is warming up. According to the Miami Association of Realtors, condo sales increased 5.5 percent year over year in June. U.S. housing is an attractive investment for foreign investors, buoyed by expectations that home prices will increase as the U.S. economy recovers.
- Improved homeowner equity and tourism will support retail sales for the remainder of the year. FHFA single-family home prices increased by 12.6 percent year over year throughout the Miami area in 2013Q2, adding to homeowner equity. The tourism outlook is positive in the vacation hotspot. According to the Federal Reserve’s Beige Book, contacts throughout the sixth district, which includes Miami, expect positive momentum in travel and tourism activity for the remainder of 2013 continuing into 2014.
Click here for the complete Miami MSA Regional Economic Update: Miami 2013Q2.