Building Costs Per Square Foot in the City of Miami (FL), USA

Residential Construction Market Analysis in the City of Miami (FL), USA

Newly Built House in Miami – 1000 NE 72nd FL-33138 – 6 Bedrooms and 5 Bathrooms with 2 x Attached Garages on Gross Floor Area 4,210 sqft – Built in 2021 – Price $4,750,000 (4)

Building costs are 1% above the national average in the City of Miami in Florida. Who does not want to live in a city that is modern, diverse, and also has a great variety of buildings? If you are looking for that, then you will find it with much more in Miami.

This city has seen impressive growth in recent years, enchanting anyone who steps foot on its streets. A large Latino community, a lot of youth, and people who came to retire but also have a young spirit.

In this article, however, we will not talk about the party or tourism in Miami, here we will focus on its real estate market, current trends, upcoming projects, and everything you need to know.

Miami (FL) Construction Outlook

The construction outlook of the city of Miami, Florida is one of the most varied that you will find in all of the United States. From small houses or precarious condominiums to modern skyscrapers and luxurious beach houses.

Everything coexists within the same city. Another peculiarity of Miami and a great cause of this diversity in its constructions is a large amount of tourism. Many people go and rent the properties briefly or are just for a walk, which means that there are properties for all tastes but generally for rent and not for sale.

Miami (FL) Housing Market Analysis and Forecast

The real estate market in the city of Miami, Florida is one of the hottest in all of the United States. Prices go up and down constantly, and many times people must compete against large investors who are looking to profit in the world of tourism or hospitality, so it is not fair competition.

In any case, there are other parts of the city where it is more common for the real estate market to move among people who want to buy a property for residential purposes, and not for tourism or hotels, so in those places, the competition is even.

All this presence of people who want to buy or invest in the Miami real estate market causes the values ​​to vary widely. This year the value of properties increased by 24% and houses take approximately 55 days to be listed (the same average as in the last 5 years).

In the case of the Miami real estate market, it does not matter if it is winter or summer, at any time of the year properties are sold and bought at the same rate, so the real estate market moves more than anything due to the momentary competition that exists in the market.

During the autumn months of 2022 (which is still ongoing) just over 900 properties were sold each month, while in summer more than 1000 were sold each month, so it can be said that there is a slight tendency to prioritize June and July, also causing the property values ​​to increase in that time.

Miami (FL) Average House Price (Median Home Price)

The median home value in the city of Miami Florida is $530,000. This represents a 25% increase over the same period last year when the median value was $430,000. Remember that the median home value is obtained from the price of all the properties listed, so it varies widely depending on the type of property and the area in which it is located.

In the case of single-family homes, the median value in the city of Miami is $565,000, which is 16% more than it was during the same period last year. Luxury houses are not classified as single-family homes in Miami, so the good thing is that they do not affect this average, causing it to skyrocket.

Condo/co-op properties have an average value of $476,000, which is 34% over the same period last year. These properties are very popular, especially on the outskirts of Miami, or a few blocks from the center of the city.

Properties that are townhouses have an average value of $420,000, which is 20% more than the same period last year when their value was $350,000. Again, these properties are located on the outskirts of Miami, although you can find some in the center that falls into this category. Still, they are usually rented to tourists.

Luxury properties in Miami are a completely separate category since two factors are mixed that make property prices grow non-stop: high demand and the fact that they are beach houses. As long as the luxury houses are located in places surrounded by nature (in this case it is the beach, but it could be mountains or forests, etc.), prices tend to rise. In the case of Miami, they have an average value that ranges from $1M to $2M depending on their location.

Proposed Residential Building Projects in Miami (FL)

In the residential construction market in Miami, the real stars are projects related to buildings. You should not be confused, since a large number of these buildings are thought to be hotels.

Even those buildings that were not created to be hotels do not lose focus on tourism. This is because they are buildings with apartments designed to be rented, either temporarily or with rental contracts that last up to 3 years. It’s something that a lot of investors prefer and it’s in demand, so it’s a system that works effectively in Miami.

The buildings that are projected to be built and finished between 2023 and 2024 are buildings that go from 15 floors to others taller than 30. They all have some kind of terrace, generally including a bar or pool area since they are designed for what people want to meet in Miami.

On the outskirts of Miami but on the coast there are luxury home projects that are practically mansions. These houses will be expensive, reaching a value of $1M, with a large number of rooms and a unique beachfront location in Miami.

Then there are some condos under construction, also thought to be rented by tourists who come with a lower budget or for students from the University of Miami.

Newly Built House in Miami – 7260 SW 52nd Avenue FL-33143 – 5 Bedrooms and 6 Baths with 2 Attached Garages on 4,791 sqft Gross Floor Area – Built in 2020 – Price $5,300,000 (1)

Building Costs Per Square Foot for Single Family Homes in the City of Miami (FL), USA

Building costs are 1% above the national average in the City of Miami in Florida.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Miami City ranges from $348.34 per sqft to $533.99 per sqft, with the average being $411.09 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Miami City ranges from $211.71 per sqft to $324.51 per sqft, with the average being $249.83 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Miami City ranges from $136.86 per sqft to $207.87 per sqft, with the average being $160.23 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Miami City ranges from $99.88 per sqft to $153.17 per sqft, with the average being $117.87 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Miami City ranges from $81.07 per sqft to $124.16 per sqft, with the average being $95.60 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Miami City ranges from $63.94 per sqft to $98.01 per sqft, with the average being $75.43 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.