Florida's exceptional performance in 2023 can be attributed to the strong presence of both local and international buyers, particularly in the Miami market. The influx of foreign buyers has been a significant contributing factor, as their numbers are nine times higher than the national average. This surge in demand, coupled with Miami's robust domestic market, has played a pivotal role in Florida's record-breaking year.
9 X the national average
The latest 2023 Profile of International Home Buyers of the MIAMI Association of Realtors (MIAMI) report revealed that foreign investment in the South Florida real estate market has been on the rise in recent years. According to recent reports, the share of foreign buyers in the area is nine times larger than the national average.This comprehensive report, spanning 56 pages, provides insights into the purchasing behaviors of international buyers in South Florida and highlights Miami's position as the top destination for real estate investments in the United States.
This influx of international buyers has not only boosted the local economy but has also presented unique opportunities for real estate professionals in the region.
According to Ines Hegedus-Garcia, Chairman of the Board of MIAMI, the city's global sales remain at the forefront worldwide. "In 2023, Miami's real estate saw purchases from 52 different countries, amounting to $5.1 billion".
New York accounted 28% of out-of-state buyers
Miami's international dealings are still robust, but it is also reaping the rewards of a record increase in local purchasers, specifically from heavily taxed and densely populated areas like New York, California, and New Jersey.
New York once again emerged as the leading state in terms of purchasing activity in South Florida, securing the top spot for the second consecutive year, as stated in the 2022 MIAMI and NAR Report. In 2022, New York accounted for 28% of out-of-state buyers.
The trio of New York, California, and New Jersey represented a significant portion, contributing to 51% of all out-of-state buyers in the Miami area last year.
Over the past two years, there has been a notable influx of individuals and companies from densely populated and heavily taxed regions relocating to Miami. Notable examples include Citadel, a multinational hedge fund managing $57 billion in assets, which moved its headquarters from Chicago to Miami with plans to develop a $1 billion office tower. Additionally, Microsoft has established a Latin America hub in Miami.
69% cash payments
According to the recent MIAMI study, around 69% of all international residential transactions in South Florida were conducted with cash payments. This figure is significantly higher than the percentage of U.S. foreign buyers paying in cash (42%) and surpasses the state average (62%) by 11.3%.
According to the 2023 Florida Realtors' annual Profile of International Residential Real Estate Activity in Florida Miami-Fort Lauderdale-West Palm Beach accounts for almost half (47%) of all international home sales in Florida.
Florida accounts for 20% of all international home sales in the United States, with half of those sales occurring in the Miami metro market. Every year, South Florida accounts for approximately 11% of all international home purchases in the entire United States.
The share of foreign homebuyers in South Florida is significantly higher than the national average, with a five-fold difference, according to a report by MIAMI and NAR. This region accounts for 18% of the total dollar volume of foreign purchases, a figure that is unmatched by any other market in the United States.
The foreign homebuyer market in South Florida accounts for 18%, which is over nine times greater than the national average of 2% and more than double that of Florida's 6%.
MIAMI Foreign Buyers Spend 6% More on Average Compared to the Rest of the Country
Compared to other buyers, foreign home buyers tend to spend more on real estate. Additionally, in South Florida, international buyers have a higher median price for their purchases compared to other regions in the U.S.
In 2023, the median price for residential properties purchased by international home buyers in MIAMI was $482,700. This is in contrast to the $455,200 spent by foreign buyers in the United States.
The median purchase price of South Florida foreign buyers was the highest among Brazilian buyers.
These impressive numbers cannot be matched by any other market, which can be attributed to Miami's unparalleled combination of a dynamic lifestyle, diverse culture, thriving FinTech industry, contemporary architecture, unique shopping options, close proximity to Latin America, and renowned beaches. In essence, Miami truly embodies the concept of endless possibilities in all aspects.
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