Miami has become a housing bubble, and it is starting to implode. In October, a home’s median sale price was $650,000, down 7% from the same month a year ago.
*Miami Risks
* Some Home Prices Still Rising
* Are Temperatures Helping The City?
There is news worse than the current drop. A UBS report shows Miami has the highest risk of a real estate bubble of any city in the world.
Miami has three problems. The first is that it is overbuilt. Not enough people are entering the market to buy homes, many of which are new and have never been occupied.
The second problem may be that fewer people are relocated from the northern tier of states because of Florida’s warm climate and low tax rates.
Finally, and most importantly, climate change has made residents of the southern part of Florida, both on the Atlantic and Gulf sides, more exposed to storms, which have become more violent and frequent. Hurricanes Helene and Milton are proof of this, and neither has made a direct hit on a major Florida city, although Milton came close to Tampa.