- A Florida real estate company plans to have 31 pre-construction condominium buildings in the Miami area ready for Airbnb.
- This represents more than 10,335 units, or more than 50% of the planned construction, noted the ISG group.
- Rising population and housing prices are already weighing on real estate in Miami.
A wave of new tailor-made condo developments for Airbnb and similar rental sites is about to sweep through the Miami area.
There are so many, in fact, that they outnumber the number of traditional rentals set to be developed during the same period.
More than 50% of the total condos in the pre-construction phase in Miami-Dade County and neighboring Broward County, a total of 10,335 units, are intended for short-term rental, according to a report from the premier quarter of the real estate company ISG World.
These units can’t be exclusively advertised for short-term stays, Craig Studnicky, CEO of ISG World, told Business Insider, but they have been grouped with few or no rental restrictions for future owners.
That means these units could, and most likely will, be used for Airbnb and similar purposes, Studnicky explained.
“We’ve had a development industry adding more short-term rentals to South Florida’s inventory,” Studnicky told BI. “And that’s not what we need.”
Florida continues to experience a major population boom and was the fastest growing state between 2021 and 2022, with 417,000 new residents. At the same time, housing prices have skyrocketed. The median sales price for a home in Miami reached $600,000 in March 2024, nearly double the median price of $335,000 in March 2020. according to Redfin.
Affordability has been shaken in Miami, where it is currently $1.5 billion short of providing adequate, affordable housing for all of Miami-Dade County. according to a study by the nonprofit Miami Homes for All. In total, the county is short more than 90,000 affordable housing units for renters earning less than $75,000 a year, the study concludes.
Miami-area developers should focus on creating more traditional rentals to ease market pressure, Studnicky believes.
The ISG World report says more than 10,000 traditional rental homes for Miami-Dade and Broward counties are planned for pre-construction, a process that will take many years. Over the past 10 years, Studnicky estimates that 20,000 much more robust traditional rental units have been built in Miami.
“That’s the number we need just to accommodate the increase in population,” he told Business Insider.
Axel Springer, the parent company of Insider Inc., is an investor in Airbnb.
