Real estate remains headline news for the Miami area. Miami Worldcenter, a $2 billion development, will soon break ground despite legal challenges. Mixed-use Brickell City Centre, at just over $1 billion, will see the completions of office and living spaces this winter, after announcing that one tower will now include more office space instead of a health center. Office lease prices are increasing, pressuring developers to furnish more office development. The site of the $430 million SkyRise tower is being prepared for a building that will reshape the skyline. The Miami area is investing heavily on infrastructure, with MIA slated to see $6.4 billion in improvements, $2 billion improvements to PortMiami and a rail line connecting Miami and Orlando.
On the residential front, the Miami area enjoyed a white-hot summer. According to the Miami Association of Realtors, Miami-Dade saw record single-family home sales in June at 1,390 transactions for the month. July was close behind at 1,345. Single-family listings are leading growth in residential sales. Both Miami-Dade and Broward counties saw better than ten percent increases in closed sales year-over-year in July, while median sales prices rose over eight percent year-over-year. Months’ supply inventory for single-family homes is at five months or less for both counties. Cooler multi-family demand should be temporary as global buyers regroup. Miami’s global allure will be its greatest downside risk. The NAR reported that 29 percent of real estate transactions in the Miami area in 2014 involved international buyers. The strong dollar may affect sales.
The Miami area job market will continue to strengthen. The area saw a three percent year-over-year increase in nonfarm employment in June, outpacing the U.S.’ 2.1 percent. Sectors seeing a better than four percent increase included professional/business services, leisure/hospitality, other services, and construction.
Click here for the complete Miami MSA Regional Economic Update: Miami_2015_Q3.