The booming Downtown residential market isn't near the end of the cycle, it's closer to mid-point (fifth inning or so for those who like baseball comparisons). Integra Realty Resources (IRR) principal Anthony Graziano tells us why.
When it comes to pricing for condos and rental units, Downtown Miami is being influenced by steady demand and a trickling supply of new units, Anthony tells us. “The delivery of more than 3,000 units in early 2016 will be this cycle’s first barometer of how international demand is holding up and the market’s ability to maintain strong pricing." According to the latest Miami Downtown Development Authority Residential Market Update, which IRR conducted, average pricing for existing condo units has grown by 6.74% over the past six months.
That price appreciation is being fueled by demand for urban living and only 1,878 new condo units delivered to the market so far this cycle. By contrast, the peak of the last development cycle saw nearly 15,000 new units deliver between 2007 and '08, according to the DDA report. More than 27,000 condo units have been proposed this development cycle, but only 6,716 units are under construction.
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