From 2020 to 2021, properties in South Florida have appreciated considerably. As for Miami-Dade, taxable property values increased by $34 billion. In this context, the County expects to obtain an additional 154 million dollars, so voices of the city commissioners considered it pertinent to approve a greater tax reduction.
The city of Miami benefited the most in the County, with new construction worth $1.7 billion. Sweetwater and Miami Gardens also had impressive new construction numbers, with $848 million and $341 million, respectively.
Florida City, an area that traditionally gets a boost from new development, saw $101 million in new construction in 2022 and a 29.1 percent increase in taxable property values over 2021.
Zoning laws, a limited housing stock, and inflation have created a major housing shortage across the State. There is still such massive demand for the very little inventory that projections predict a record speed in the sales ratio.
Sharp rent growth is definitely a sustained reality fueled by inventory shortages and the constant migration of people leaving other states to live in Florida. The rise of remote work encourages that trend and leads more families to move into single-family homes. With many companies still offering employees the option of working from home, a larger home with a pool and extensive gardens is an increasingly popular option among renters. The demand for rental homes remains strong and is expected to continue for a long period.
The property tax reduction further encourages investors to purchase or build new homes throughout Florida. However, inventory will take a long time to balance with demand.