Miami Beach Real Estate Market Forecast 2024

A stunning seaside oasis located on an island, Miami Beach makes up one of South Florida’s most prestigious real estate markets. The area is home to luxurious high rises and sprawling oceanfront mansions. Despite being just 15 square miles, this island community boasts a stellar selection of things to do. This vibrant cultural hub is filled with exclusive shopping, fine dining, and unmatched entertainment.

Here, homebuyers can find some of the most sought-after homes in the world. Miami Beach is famous for its unique beauty and features an unmatched selection of Art Deco-style homes. In addition to these elaborate homes, buyers can find simpler modern houses and traditional bungalows. Today, more homebuyers dream about moving into one of Miami Beach’s neighborhoods. However, before getting serious about purchasing a property, it is helpful to learn more about what to expect in the area for the coming year.

Before buying a home in a highly desirable luxury neighborhood like Miami Beach, with price tags often reaching the millions, most homebuyers want to know more about how the economy of the area will impact their buying power.

Owning a property in Miami Beach is seen as an investment opportunity for many. Sitting at the center of a booming tourist hotspot, owning a luxury vacation home or full-time residence to sell in the future can bring a huge return on investment to smart buyers. However, real estate investment always comes with some inherent risk.

This is why a sound understanding of the local real estate market is important. The market forecast can give buyers and sellers valuable insight into what experts are predicting for the Miami Beach real estate market in 2024 so they can respond with confidence.

Miami Beach saw decreasing home values for several years until 2020 when the housing market took off. Home prices in Miami Beach have been on the rise ever since, with home values increasing steadily. In just the past three years, home values in Miami Beach have increased by over $60,000.

Current market trends see home prices continuing their steady climb well into the future. The five-year forecast for Miami Beach predicts a substantial 12% increase. That means by late 2028, the median home price in Miami Beach is expected to be about $520,000. For real estate investors, this means a strong likelihood of a sound return on investment on a Miami Beach home in the coming years.

After peaking in 1980, Miami Beach has seen a gradual population decline ever since. In recent years, the amount of people leaving the island has increased. Since 2020, Miami Beach has lost nearly 5,000 residents, representing a 5% decrease in population. Currently, experts are predicting a steady 2% decline each year as more people leave the island in search of more affordable places to live. Among one of the most populated areas in Florida, many are choosing to relocate outside of the Miami area in search of more peaceful and less populated communities.

Since March 2023, homes listed for sale in Miami Beach have been at an all-time low. Over the past five years, inventory on Miami Beach has rarely dropped below 6,000 homes for sale. However, after December 2022, inventory took a nosedive, dropping from about 6,200 homes on the market at the end of the year to just 5,300 in January.

Throughout 2023, Miami Beach has seen historic lows in housing inventory, a trend that may recover as the months go on but is unlikely to rebound fully in the coming year. This trend may push Miami Beach into a seller’s market where buyers have to compete, often spending more, for the limited supply of listings.

After months of increasing interest rates, experts are predicting a slowdown in the coming months. Since early July of 2023, interest rates on a 30-year fixed-rate mortgage dipped from 6.96% to 6.78% and are expected to continue to decrease for the next couple of months. Lowering interest rates may bring more homebuyers onto the market in 2024 after suspending their home search to avoid inflated interest rates.

Armed with experts' predictions for Miami Beach, real estate investors and homebuyers can go into their purchases with confidence. While some indicators give a rocky picture for the future of Miami Beach’s housing market, the enduring popularity of the region as a vacation destination and luxury mecca will keep this posh island on the map for years to come. Despite the declining population and dwindling inventory on the island, home prices continue to increase. Experts project that home values in Miami Beach will continue to grow into the future, making a piece of Miami Beach a sound investment in 2024.

For sellers, the future is less predictable. Less inventory often means more competition among buyers. However, with fewer people moving onto the island, the market will likely remain balanced in the coming years. Lower interest rates may bring some buyers out of the woodwork that has suspended their home search, possibly driving more luxury buyers to the island in the coming years and increasing competition for Miami Beach homes. Rising home values indicate that current homeowners are still likely to be able to turn a profit.

If you are looking to buy or sell a home in Miami Beach in 2024, you need the help of an experienced local realtor. Understanding the housing market in Miami can be difficult, especially if you are trying to leverage current conditions to meet your real estate goals.

Luckily, Carmenate / Duchon has been serving the Miami area for years, giving them a deep understanding of what it takes to succeed in a competitive real estate market. Whether you want to buy Miami Beach mansions or are looking to learn more about the area, give Eloy Carmenate and Michael Duchon a call to have all your questions answered.