With Prices Continuing To Rise, Flexibility May Be the Key to Buying a Home in Miami

by William Gartin

Flexibility May Be the Key to Buying a Home in Miami

With Miami’s real estate market continuing to heat up, many potential homebuyers are finding themselves priced out of the areas they initially had their eyes on. The average price of homes in popular areas like Southwest Miami and Hialeah has reached $650,000 and $550,000 respectively, making these locations increasingly out of reach for many local buyers. But in a city as dynamic and diverse as Miami, flexibility might be the key to finding the perfect home.

For those feeling priced out, it’s essential to consider expanding your search to more affordable areas in and around Miami. Based on Q2 2024 data, here’s what the current housing inventory looks like in some of the hottest real estate markets:

Single-Family Homes:

Miami Gardens: 2.0 months supply
Princeton: 2.5 months supply
Hialeah: 3.5 months supply
Cutler Bay: 3.7 months supply
Homestead: 4.1 months supply

A month's supply is an indicator of how quickly homes are selling in a given area. A lower number means there are fewer homes available relative to demand, and the market is competitive. As we can see, areas like Miami Gardens and Princeton are in particularly high demand, with less than a 3-month supply of homes, while Homestead, though also competitive, offers more availability at 4.1 months.

Why Flexibility Matters

The data from this chart supports the original hypothesis that more families are turning to areas like Miami Gardens, Princeton, Homestead, and Cutler Bay because they offer more affordable housing options compared to higher-priced neighborhoods such as Southwest Miami and Hialeah. With the average home price in Southwest Miami at $650,000 and $550,000 in Hialeah, many families making the average salary in Miami-Dade are finding it increasingly difficult to afford homes in these areas.

As a result, families are exploring more affordable alternatives in areas like Miami Gardens and Princeton, where the inventory is lower (with 2.0 and 2.5 months supply, respectively), but the homes are priced within their reach. For those open to Homestead, with its 4.1-month supply, there is more availability, and the homes are often priced in the $400,000 range, making them far more affordable than properties in Miami’s core areas.

In contrast, buyers in areas like Hialeah, with its 3.5-month supply, and Cutler Bay, at 3.7 months, are seeing tighter competition and may need to move quickly to secure a home. Many families are now priced out of these markets unless they explore multigenerational living, where multiple family members contribute to the mortgage to increase their loan approval amount. This strategy has become more common in high-priced areas like Southwest Miami, where the rising cost of homes makes it harder for single-income households to qualify for mortgages on their own.

Here’s how being flexible can benefit you:

More Affordable Options: By considering homes in slightly less central areas like Homestead or Miramar, where the supply is greater, you can find properties that are more affordable, typically falling in the $400,000 range. These areas may not be the first choice, but they provide an opportunity to become a homeowner without overstretching your finances.
More Space for Your Money: In areas like Miami Gardens, Homestead, and Cutler Bay, you’ll often find that homes come with larger lots and more living space, giving you more value for your money. If you’re willing to expand your search beyond Miami’s core, you could get a bigger yard, more bedrooms, or even a pool.
Growing Neighborhoods: Many of the neighborhoods where home prices are still affordable, like Princeton and Homestead, are in the process of rapid development. Investing in these areas now could mean reaping the benefits of rising property values in the future.
Proximity to Miami: Although these areas might be a bit further from the heart of Miami, they are still close enough to enjoy all that the city has to offer. With Miami’s ever-improving infrastructure, commuting from places like Homestead or Miramar is becoming easier and more convenient.

Final Thoughts

While it’s true that home prices in Miami’s core areas like Southwest Miami and Hialeah are rising, being flexible with your location could be the key to finding a home that fits your budget. Areas like Homestead, Miami Gardens, Cutler Bay, and Miramar are offering more affordable options, and the current housing inventory indicates that there is still an opportunity to secure a home in Miami-Dade County, even as prices climb.

By expanding your search to include these neighborhoods, you can find homes in the $400,000 range, making homeownership more accessible. The key is to remain flexible and open-minded—this approach will ultimately lead you to the right property in this fast-paced and competitive Miami real estate market.

If you’re ready to start your home search and explore these affordable neighborhoods, reach out to me, William Gartin, at 305-842-6097. Let’s find the perfect home for you, where flexibility leads to the home of your dreams.