(Gross Yields from 10.93%, 57% Occupancy Rate)
Quick Facts
Population – City of Miami – 454,279 / Metro – 2.717 million (2013)
- The Census Bureau ranks Miami-Fort Lauderdale-West Palm Beach, FL (MSA) as the 8th largest in the United States by population size.
- World Population Review states that Miami is currently growing at a rate of 1.08% annually. As a benchmark, FreddieMac states that US cities grow at an average 0.3%.
- Miami is ranked #128 in American for best places to live and #48 for best places to retire according to US News
Cost of Living: Payscale ranks the cost of living in Miami to be 14% higher than the national average. Miami also has 44% higher housing expenses than the national average.
Job Market: Tourism accounts for thousands of jobs in Miami-Dade County, with millions of people flying into Miami International Airport and boarding ships in PortMiami each year. Given Miami’s position as a major international port, trade and manufacturing are also key industries in the area, as is finance. Miami has been undergoing a new-construction boom in recent years, providing a number of industry-related job opportunities.
Fortune 500 Companies: Leannar, World Fuel Service, Ryder Systems
Sports Teams
- Miami Marlins – Baseball
- Miami Heat – Basketball
- Miami Dolphins – Football
- Inter Miami CF – Soccer
- Florida Panthers – Hockey
- Miami Fusion – Soccer (Fort Lauderdale)
Universities
- There are 87 institutions in Miami-Dade: 79 private colleges and 8 public colleges.
Seasonality
According to U.S.News., The best time to visit Miami is between March and May. During these months, you’ll be able to enjoy daily temperatures in the 70s for non-peak rates, while the rest of the country is still defrosting. The year-round tropical climate and partying ways of nearby Miami Beach, mean tourists – lots of tourists – from northern states, South America, Europe, Asia, anywhere and everywhere year-round. And when there are special events, the city sees even more visitors and higher hotel rates. For the best chance of scoring deals, book around the city-wide events or during the sweltering summer months.
Tourism Off-season (May – September)
- High humidity
- High temperatures
- Hurricanes season
Tourism Peak Season (January – April)
- Low to moderate temperatures
- No hurricanes
- Less humidity
- A big Spring Break crowd and many festivals
Active Rentals
There are 4,525 active rentals in Miami Beach. Almost 75% of all listings are studios and 1 bedroom.
Larger homes catering to bigger parties and families are potentially undersupplied. There are only 100 active 4 & 5-bedroom homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in Miami Beach is $199.
Throughout the year, the rate fluctuates by $60 from that average with the highest Average Daily Rate being in March 2022 ($259) and the lowest in October 2021 ($152).
Occupancy Rate
Occupancy Rates in Miami Beach are high in the Spring. In the last 12 months, the average occupancy rate was 57.60%. The lowest occupancy rate was in October 2021 at 37% and the highest was in March of 2022 at 93%. This shows us that the peak rental season is in the spring and winter months and the low rental season is in the fall.
Demand
The majority of the Miami Beach short-term rental guests are domestic guests from the United States, though February is when the presence of international guests is most noticeable.
International guests in February barely cross the 28% threshold of total guests in Miami Beach. The majority of international guests visit from Argentina and Canada.
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Other Facts
The average property tax rate is 0.97%. It is 0.1 lower than the national average of 1.07% according to smart asset.
According to Zillow, homes in Miami appreciated 21.6% year-over-year (YoY) and the median home price for active listings was $2,801,667 (as of June 2022).
Homes in Miami Beach average 67 days on the market according to data from Redfin.
The BLS reported that the unemployment rate in Miami Beach fell to 2.1% in May of 2022, which is in line with the national average of 3.6%.
Short-Term Rental Regulation
Miami Beach does allow short-term rentals but only in specific zones. This is a very important consideration for investors as they should only look for properties in approved zones. Additionally, hosts must obtain the following before listing their property:
- Florida Vacation Rental Dwelling License
- City of Miami Beach Business Tax Receipt (BTR) number
- City of Miami Beach Resort Tax Certificate number
Airbnb has a great Miami regulations guide to assist new hosts with the registration process.
