The Future of Miami Real Estate: Forecasts and Insights from Shane Graber

Known for its thrilling energy and cosmopolitan allure, Miami’s real estate industry has undergone profound change in recent years. Generally speaking, the market has been on a steady upward trajectory, with the exception of the COVID-19 pandemic, which has brought some changes. Prior to the pandemic, Miami real estate saw a moderate year-over-year increase in prices and demand. COVID-19 has become a seller’s market, with low interest rates and strong demand.

Fast forward to the present day, as the world recovers from the pandemic, Miami’s real estate sector has readjusted, with the typical value of a home listed at $554,261 through the end of December 2023. This phase of transformation has created challenges and opportunities for industry players seeking to masterfully navigate the complex and ever-changing terrain of Miami real estate.

One expert who has demonstrated incredible understanding of these fluctuating market trends is Shane Graber, founder of Graber Real Estate Group and a seasoned professional in the Miami real estate scene. With extensive experience in luxury marketing and investing, Graber brings a unique perspective.

Under his leadership, Graber Real Estate Group not only adapted to the changes in Miami’s competitive market, but thrived in the midst of them.

One of the most interesting trends Graber has seen in Miami recently is an increase in demand for luxury homes, particularly those priced between $4 million and $7 million. This trend has been so significant that it has earned its nickname the “Citadel effect.” Named after Citadel, a hedge fund giant that recently moved its headquarters to Miami, this effect signifies the influx of buyers and businesses looking to call The Magic City their home.

Graber maintains that as the trend grows, it will inevitably transform Miami — and perhaps, over time, the majority of the Sunshine State, into a unique technology and financial hub. At the same time, as the Citadel effect continues to expand its reachthe number of luxury homes available in highly desirable neighborhoods like Coral Gables and Coconut Grove will inevitably begin to dwindle.

“The current increase in demand reminds me a lot of Los Angeles and San Francisco about 30 years ago, when most people thought investing in real estate was expensive. Looking back, however, we all now wish we had had the courage to invest back then,” he says.

On the other hand, single-family homes, particularly those with four bedrooms, have experienced a resurgence in popularity. Graber says he — and many others in his field — have observed a growing attraction to these homes, particularly in older, established neighborhoods close to downtown Miami. Interestingly, these fields generally attract young professionals who value proximity to their workplace.

The numbers support this claim. In September of last year, Miami-Dade County recorded its second highest September in terms of single-family home dollar value, reaching $983.2 million – a year-over-year increase of 29.4%.

“Single-family homeowners will still be in a good position, as many of the people living in the new condos and high-rises downtown tend to want to move to a home further away, further increasing the request,” says Graber. “I’m particularly optimistic about city centers because they’re close to the action and generally attract young professionals who don’t want to come from far away. »

The COVID-19 pandemic has also played a significant role in changing buyer preferences. With remote working becoming the norm, Graber points out that there is an increased need for home office space, leading to a growing demand for homes with four or more bedrooms.

This change in preference therefore resulted in “hospitalization”‘, a term that describes the demand for comfort and convenience related to remote working. “Homes offering a mix of functional workspaces and luxurious amenities are becoming increasingly popular, and I don’t see this trend going away anytime soon,” adds Graber.

Despite record rent increases, international remote workers continued to flock to Miami, indicating the city’s growing appeal as a remote working hub. According to Graber, this trend is also likely to persist.

From the increase in demand for luxury housing, known as the “Citadel Effect,” to the rise of single-family units and the impact of remote working on housing preferences, the real estate market of Miami is undoubtedly ready to evolve and grow. With his team at Graber Real Estate GroupGraber’s plan is to stay ahead of the trends and continue to provide unparalleled services to its customers.

As Graber says: “We are living in unprecedented times where the market is at an all-time high. As professionals in the field, we have a tremendous opportunity to determine the future of current trends and contribute significantly to the growth of the city.

This article was written by an external contributor and does not represent the views of Benzinga and has not been edited for content. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice. Benzinga does not make recommendations to buy or sell any securities or make any representations about the financial condition of any company.