Miami, a pivotal point in the real estate market, faces an unusual situation that has gone unnoticed by many. Did you know it’s one of the cities with one of the highest rates of vacant homes in the United States?
According to a recent study by LendingTree, Miami holds the second-highest rate of vacant homes, reaching 12.65%. This data is derived from the U.S. Census Bureau American Community Survey, highlighting Miami’s uniqueness in such a diverse country.
The paradox lies in the fact that, despite this high rate of vacant homes, property prices have not shown a significant decrease. Contrary to expectations, property values remain robust. What explains this real estate phenomenon?
Senior economist Jacob Channel, author of the report, reveals that the high rate of vacant homes is primarily attributed to the surge in second residences in the city. Over 53% of the 339,000 vacant homes in Miami are used for seasonal or recreational purposes, such as vacation houses or weekend residences. Miami’s allure lies in its year-round warm climate and an enviable lifestyle, making it the perfect destination for those looking to escape the harsh Northern winters or enjoy extended weekends by the beach.
It’s surprising that despite the high rate of vacant homes, property prices in Miami remain steady. Why hasn’t there been a decrease? This is because these vacant homes are not signs of abandonment but rather testimonies of investment.
Most of these vacant homes are owned by affluent investors from all over the world. These properties, even though not occupied throughout the year, are not left in a state of abandonment. They’ve become investment opportunities, which explains why the values remain largely unchanged.
Another very interesting aspect highlighted in the report is the daily fluctuation of the vacant home rate. This is due to the inclusion of unoccupied properties, not just in the market for sale or rent, but also those that have been sold or leased but still lack occupants. This variability reflects a city in constant evolution and transformation.
