Tag: Population

 
I’m sure we have all heard the news this week. The Miami population has declined for the first time since 1970. Housing prices are up 53%. Is affordability the problem? Is this a problem?

The numbers are just numbers. They can’t give a reason, so here are my thoughts.

The problem is not just housing costs.

Not really anyway. It’s lifestyle. The pandemic opened a lot of people’s eyes to how they want to live. With remote work now being more widely embraced after being forced into it during COVID, we have more choices.

People who were stuck in a condo for months maybe would prefer some land now. So off they went to the country. But in their place came someone from New York who saw that they could be stuck indoors with floor to ceiling windows and a water view in Miami for the same price as an older building without much view in New York.

This shift kept our market strong during COVID and there were a lot of people from up north who were looking to have that water view if they could work from home.

And with that price shift, a lot of people were priced out.

It should also be mentioned that it’s not just housing that is more expensive these days. Everything is higher. Food, gas, literally everything. So there are quite a few people who would rather pay less than to have the water view, and they left.

The post-pandemic lifestyle has changed as well.

There used to be a little inside joke between professionals in the Miami population. When you met a local person, you’d determine if they worked in tourism, banking or real estate. But this stereotype doesn’t work anymore. There are a lot of industries that have catapulted into the limelight. Now people try to figure out if the new local is a tech bro or a crypto bro (I kid, sort of).

This is a really good thing. It has changed the demographic landscape of our city for the better. We now have a very rich entrepreneurial demographic.

As a matter of fact, the US Census also did a study on the entrepreneurial demographic in Florida and found that the Miami population is the most entrepreneurial. There are more new business licenses filed per 1,000 residents in Miami than any other county with almost 50 applications per 1,000, totaling nearly 128,000 licenses filed in 2022. They also made a fun interactive graphic that you can find here.

The future is bright.

The entrepreneurial spirit that emerged from COVID is an amazing sign of the economic health of an area, and it just keeps getting better. We have companies like Citadel beginning to enrich our economy.

Keep in mind that the Miami population report that everyone is looking at does not take into consideration the Citadel effect. It was not so long ago that Ken Griffin committed to relocating his headquarters to the Magic City, so we have not yet seen the economic effect of this.

Also, the global elite are only just now starting to really make Miami a priority aside from just somewhere to visit for a week. There are more ultra-luxury properties in the pipeline than ever before and they are selling quickly.

All in all, the increase in prices is not necessarily the cause of the Miami population decline. The population decline is an overall demographic and lifestyle shift and a new era of Miami is here. 

To speak more specifically about an investment or if you need/wish to move, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com. We would be honored to assist you.