People from all over the globe live and vacation in Miami, and for good reason. The city on Florida’s southeast coast is vibrant with culture, natural beauty and economic vitality. Those same qualities also attract investors to the Miami real estate investing market.
In addition to being a major tourist destination, Miami also boasts the second-largest cruise port in the world, a major cargo port and one of the busiest airports for domestic and international passengers and freight.
Strong job growth in finance, technology and international trade is bolstering continued population growth, which is increasing demand for housing and providing opportunities for investors. Here’s a closer look at the Miami real estate investing market to help you decide whether you want to invest there.
Why Miami Remains a Top Investment Destination
Miami, which includes 6.5 million people in the metropolitan statistical area (MSA) of Miami-Fort Lauderdale-West Palm Beach, ranked No. 2 on the list of “Emerging Trends in Real Estate 2025” study compiled by PricewaterhouseCoopers and the Urban Land Institute.
Since the start of the pandemic in 2020, Miami home prices have grown 80%, driving many residents to less-expensive parts of the Sunshine State. However, the city’s robust economy, subtropical climate (an average 65 to 75 degrees Fahrenheit) and high-spirited lifestyle continue to attract millions of tourists each year and tens of thousands of new residents.
While tourists fill short-term rentals — a record 28 million visitors spent $22 billion in Miami-Dade County in 2024 — the metro area’s population is expected to grow 0.5% to 1% for each of the next five years, supporting the Miami rental market.
High-net-worth individuals and investors, both foreign and domestic, are projected to continue to lead that population expansion. From 2023 to 2024, the metro area grew by 123,471 people for a 1.9% increase.
Miami’s status as a global business center and tourist destination is another draw for investors. Florida also has no state income or estate tax, and Miami’s property taxes are reasonable.
Current Miami Market Overview in 2025
Here’s a look at Miami housing market trends this year.
- Median home price: $616,000 in June 2025, down 0.24% year over year
- Average home value: $588,264 in June 2025, down 0.7% year over year
- Median listing price: $630,000 in June 2025, down 3.8% year over year
- Median days to pending: 99 in June 2025, up 20 days from the previous year
Rental Market Trends
Nearly 70% of housing units are occupied by renters. Here’s a look at the trends in the Miami rental market.
- Average rent: $2,727 per month in June 2025
- Median rent: $3,150 per month in June 2025
- Year-over-year rent decrease: 3% drop in median rent as of June 2025
Commercial Real Estate Outlook
With a robust and resilient economy drawing foreign and domestic residents and investors, the Miami commercial real estate market is one of the most attractive in the U.S.
The property index from the National Council of Real Estate Investment Fiduciaries (NCREIF), which measures return on commercial investments quarterly, reported a total return of 1.90% for the first quarter of 2025 for the South region, which includes Florida. The Miami MSA recorded a 2% return in the second quarter of 2024, while the national return was -5.3% for the same period.
The key commercial sectors — industrial, multi-family, retail, office and hospitality — are stable in the Miami area. And while Florida is experiencing rising construction costs, as well as higher insurance and interest rates, the state continues to attract capital and corporate relocations.
In Miami, you can consider the following commercial areas:
- Brickell: Luxury office space and corporate headquarters
- Wynwood: Creative spaces and retail
- Doral: Industrial and warehouse space near the airport
- Edgewater: Mixed-use development
You can explore commercial real estate investment opportunities in Miami by staying informed through the Miami Downtown Development Authority and working with local professionals to understand zoning laws and permit requirements.
Emerging Neighborhoods to Watch
If you’re looking for a Miami property investment, 2025 could be your year. The Miami metropolitan area has many neighborhoods to consider.
One of the most popular is Little Havana, a working-class neighborhood rich in Cuban culture that’s undergoing redevelopment. With an average price per square foot of $338, the area has an average rent per month of $2,577.
Another popular neighborhood to invest in is Brickell, where the average price per square foot is $640 and rents go for $3,635 per month. The median sales price per square foot in the Allapattah neighborhood is $314, and the area has an average rent of $2,677 per month.
If you’re looking to go upscale, you can consider some established neighborhoods with the potential to deliver the highest yield per square foot, including:
- Coconut Grove: Average rents at $3.84 per square foot
- South Miami: Average rents at $3.91 per square foot
- Miami Beach: Average rents at $4.54 per square foot
When weighing the return on investment from Miami area properties, consider looking at the location, average sale price, property value and cost to insure the property.
Key Risks and Challenges to Consider
The Miami real estate investing market can yield great rewards. However, this prime destination for tourists and investors has its share of risks and challenges you must consider when investing.
- Insurance: Premiums have surged 48% in some areas
- Market volatility: Fluctuation of housing prices
- Regulatory changes: Increased condo assessments to meet safety regulations
- Natural disasters: Hurricanes, flooding and tornadoes
Other challenges include continued high interest rates coupled with the high cost of real estate in Miami, which severely impacts affordability. And the luxury market — with homes worth more than $1 million — is rising at a rate leading some real estate professionals to worry about a possible bubble. Housing prices have climbed about 50% in real terms since 2019.
Consider the Miami Real Estate Investing Market
The Miami real estate market is stabilizing, shifting toward a buyer’s market and providing opportunities for investors, although prices remain high. As a global business center, Miami attracts out-of-state, high-net-worth buyers and foreign investors paying cash. You can pursue long- and short-term investments. However, do your research and consider your investment goals and your timeline.
Frequently Asked Questions
A
Miami is considered one of the best metropolitan areas to invest in real estate because of its vibrant economy, expanding population, strategic location, strong rental market and demand for luxury properties. As tourism, international trade, finance and technology drive growth, the city continues to attract investment from around the globe.
A
With more properties being listed and sitting on the market longer, real estate professionals say now is the time to buy property in Miami. Prices for homes remain high, but they are falling, potentially allowing you to buy luxury at a discount.
A
The Miami real estate market is a mixed bag. Some parts are cooling, with inventory rising and houses staying on the market longer, while others, such as luxury properties, remain strong. Miami is shifting into a buyer’s market, although housing prices remain high and are expected to stabilize, not crash.
