Property Markets Group managing partner Ryan Shear and Naftali Group EVP Danielle Naftali said South Florida remains an attractive real estate market as people and companies continue moving to the region.

In an interview with Fox News Digital published Sunday, Shear said Miami has become more expensive but remains a value compared with major cities such as New York, London and Los Angeles. He said Florida’s lower taxes, development costs, lifestyle and continued corporate migration are supporting the market.

Miami Remains A Value Play

Shear said Miami spent years trading at a discount to cities such as New York, London and Los Angeles, but has been catching up as people, companies and high-profile individuals moved to South Florida following the pandemic.

"I still think it’s a bargain play down here," Shear said, adding that Miami remains a value city compared with other major cities around the world.

Naftali said the city’s growth has also changed what buyers expect from Miami. "Miami has earned a seat as one of the greatest cities in the world," she said, while noting that the city’s rising costs have accompanied the growth.

She said buyers are considering lifestyle, services, amenities and quality when purchasing property and are willing to pay a premium for those features. She also said buyers in their developments could see appreciation over the next five to 10 years.

Taxes And Luxury Buyers

Shear said Florida remains less expensive to build in than New York by a significant amount, while borrowing costs are not unique to Florida because banks lend nationally and globally.

Naftali said Florida’s tax structure remains an incentive, particularly for luxury buyers. However, she said wealthy buyers are not necessarily choosing between New York and Florida.

"Most of those buyers have a home in both locations," Naftali said.

Shear pointed to the absence of a Florida state income tax and city income tax, while comparing the tax burden with New York’s highest tax brackets.

Naftali also said Miami is no longer simply a seasonal destination. She said the city has become a place where people live permanently and that its continued development could support further migration over the next five years.

"If you’re able to get in now and invest in a new development down here, I think it’s a great investment opportunity," Naftali said.

Companies Keep Moving South

Shear said corporate relocations are another part of Miami’s growth story. He said companies much larger than PMG are establishing operations in Miami, building businesses and moving existing companies to the region.

"I think we’ve reached a tipping point," Shear said.

He pointed to population growth, jobs, high-rise development and Miami’s expanding business environment as factors attracting companies and residents. He also said South Florida offers more than a lower real estate price, pointing to work hours, quality of life, weather, restaurants and the city’s international culture.

"Fundamentally, people are moving down here and still are continuing to, not just because you save on taxes or there’s good sun," Shear said.

Miami Becomes More Expensive

South Florida’s rising costs provide a different picture of the market. The Miami-Fort Lauderdale-West Palm Beach metropolitan area had a higher Regional Price Parity index than the New York-Newark-Jersey City metro in the latest comparison cited, indicating higher overall prices. South Florida home prices had also risen 79% since the pandemic, while annual homeowners insurance premiums reached $8,292.

Miami’s affordability pressures have also grown as wealthy households continue relocating to the region. The average Miami home was cited at about $652,110, while homes priced below $400,000 represented just 2% of active single-family listings in Miami-Dade County. At the same time, 42% of listings were priced at $1 million or more.

Rental Market Stabilizes

The rental market has shown a different trend as new apartment supply reaches the market. Miami has started to stabilize as newly built apartments find tenants, while other Florida markets such as Tampa continue to have enough supply to push rents lower.

Zumper CEO Shawn Mullahy said local housing markets are moving in different directions depending on whether new supply is being absorbed. The data showed Miami’s rental market beginning to stabilize as new apartments are absorbed.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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