The Long and Short of Miami's Recovery

MIAMI—South Florida was smack dab in the middle of Florida's high rise condo crash, but it's multifamily market is right in the middle of the revival. What are the prospects for Miami's recovery?

According to CondoVultures.com, there have been more than 200,000 foreclosure repossessions in the tricounty region of Miami-Dade, Broward, and Palm Beach since the real estate crash began in 2007. But multifamily has led and continues to lead the recovery even as the next wave of condo development begins.

Deme Mekras, a multifamily broker with Franklin Street focused in the South Florida market, told us Miami is recovering in the short-, mid, and long-term. It begins on the multifamily front.

“Foreclosures in the Miami world have slowed to a trickle and are very few and far in between,” Mekras says. “A continuation of some isolated examples of distress is to be expected but overall, the market has healed and is growing"

Apartments and condos, Mekras says, have stabilized and pricing is rising. But, he adds, in a classic Miami style developers are fast at work to capitalize on the renewed demand and are feverishly adding new supply to the local market.

“Despite its fiscal challenges, the U.S. still touts as the most stable economy in the world and is therefore a safe harbor for investors hailing from more volatile environments," Mekras says. "Investors from around the globe see Florida and particularly South Florida as a good value."

Mekras notes that Florida is one of only eight states with no state income tax and is the home to some of the busiest airports and seaports on the planet: "Florida is a right-to-work state and boasts about 300 days of sunshine each year. For these reasons and more, this trend is expected to continue as the Miami market improves.”