Welcome to the 2019 edition of the Miami ReportTM
For the last nine years, ISG has produced and published the Miami Report. In each report, we have documented the unparalleled growth of South Florida and chronicled its journey in becoming an area of global importance and its rise as a truly world-class destination.
Our market research department has worked tirelessly over the past several months tracking new developments in order to present a clear picture of the current state of our condominium market. Once again, we have assembled and graphically presented what we deem to be critical information for real estate industry leaders as they make decisions on future development and investment.
The constant changes in political climates of our neighbors to the south, Central and South America,
and the strength of the U.S. dollar have had a profound effect on the absorption of new developer condo inventory over the last four years. This has resulted in a challenging condo market for urban centers reliant on international buyers.
So where are we now and what lies ahead for our immediate future?
We believe the data we have assembled and are presenting will confront you with what we have labeled a “supply shock.”
South Florida continues to be one of the fastest-growing areas in the United States. However, the stubbornness of the high U.S. dollar has, for the most part,slowed any meaningful new condominium development. Despite the slowdown, our data reveals just 2,101 unsold developer condo units in our market area, with only 587 of these units being standing inventory. The remaining units are either under construction or in the pre-construction phase. Even at the lower absorption rates of the past two years, the total remaining unsold inventory should be absorbed in the next 18 to 24 months.
Developers are expecting to launch pre-sale campaigns for the next cycle in 2020. Factoring in the height of these new towers, which are planned to reach 60 to 100 stories, it’s evident that most of these future buildings won’t be available for occupancy until 2024 or 2025 at the earliest. What becomes clear is that after the current developer inventory is sold, a buyer relocating in the next several years will need to look
solely to MLS/resale inventory to satisfy immediate needs, thus the title of this Miami Report, “Supply Shock.”
We trust you will find our report informative and concise. We have endeavored to present the current conditions factually. We hope that this data will help you formulate your own conclusions and guide you to take advantage of what the current state-of-the-market is offering as you develop your business plans.