South Florida's luxury real estate market is experiencing rapid growth, with high demand from luxury buyers and limited inventory. Despite a decline in sales and prices of luxury homes from record highs in 2021, prices in Fort Lauderdale and Miami are still significantly higher than pre-pandemic levels. The average sale price of homes in Fort Lauderdale stood at a mere $2.7M in November 2022, up from $2.1M in 2019 (Broward, Palm Beaches & St. Lucie Realtors). One reason for the booming luxury real estate market in South Florida is the growing number of high-end condo projects and single-family homes.
   Wealthy individuals from all over the country are flocking to South Florida, and it's not just for retirement. People are relocating for jobs and easier living. Several large corporations including Goldman Sachs have setup offices in West Palm Beach, indicating further growth is sure to come to boost the local economy. In Miami, the average rental property rate rose 25% to $4,233 in 2022 from $3,393 in 2021 (Rentometer, 2022).
   We expect continued exodus from cities like New York and San Francisco to expand the luxury short term rental market in South Florida because people want to be in the area, even if only temporarily. Further, due to interest rates rising, home buyers will have less capital to purchase with; this will likely lead to a slight decrease in home sales and higher demand for rentals. Existing homeowners can capitalize off of this wave of renters coming in instead of allowing their homes to sit empty for long periods if they were planning on selling. Offering luxury properties as short term rentals not only would help alleviate maintenance and debt service costs but also generate a positive net income for homeowners. 

Interested in converting your property into a lucrative short term rental?
Contact Tigertail Property Management. We handle everything from staging to guest relations.
E-mail: [email protected]
Phone: 754-301-6296