WRE News: Miami Ranks #11 Amongst Top 15 Overvalued Housing Markets in U.S.

Miami, FL – August 6, 2023 – Florida has long been a favored destination for businesses and individuals seeking relocation within the U.S. Yet, a national survey reveals that nine out of the top 15 overvalued home markets can be found within the Sunshine State, with Miami ranking as the 11th.

Researchers from Florida Atlantic University and Florida International University have raised concerns about these soaring home prices. The real estate market in Florida is grappling with a unique combination of factors driving its upward trajectory: An influx of population, including a surge in millennials forming households, has fueled an insatiable demand for housing.

Florida’s attractiveness as a hub for both technology and financial corporations has led to an influx of high-income professionals who are willing to pay a premium for housing. The impact of this demand is exacerbated by the state’s restricted land availability, high-interest rates, and the reluctance of baby boomers to sell their homes.

These converging trends are placing immense pressure on the affordability of housing, with mortgage rates hovering at high and volatile levels. The Mortgage Bankers Association’s Edward Seiler highlighted the strain on homebuyer affordability, citing the persistent high home prices due to low inventory.