By Gay Cororaton, MIAMI REALTORS Chief Economist
Southeast Florida’s real estate and rental and leasing industry[1] is a major contributor to economic growth and plays an invaluable role in wealth creation.
Southeast Florida: $1.3 Trillion in Housing Wealth in Owner-Occupied Housing Units as of April 2024
Real estate is the primary source of wealth for most households. As of April 2024, Southeast Florida’s 1.56 million owner-occupied units had a market value of $1.3 Trillion based on the prevailing average sales price of $785,300. In the past 12 months ended April 2024, $61 billion of single-family homes, condominiums, and townhomes exchanged hands. In Miami-Dade County alone, $12 billion of commercial real estate sales transactions occurred in 2023.
Housing wealth increased due to a dual increase in the number of homeowners (and the homeownership rate) and home prices. Southeast Florida’s overall homeownership rate across the five counties slightly rose to 61.5% in 2022 from 60.5% in 2019, although this is lower than the US homeownership rate of 65.2%. However, the homeownership rates are higher than the US rate in Palm Beach, Martin, and St. Lucie. Since 2019, 130,787 more households have become homeowners. The average home price rose 57% to $785,271 as of April 2024 from $499,079 in 2022.
Strong job growth, elevated migration, a rising share of cash and high-end buyers, and tight housing supply relative to demand has supported the increase in homeownership rate and the robust price appreciation in Southeast Florida[2].
Southeast Florida’s Real Estate and Rental and Leasing Industry: 19% of Economic Output
In 2022, the industry’s output (value added) was $95.2 billion or 19% of Southeast Florida’s $507.9 billion of gross domestic product. This is a higher share compared to the national rate of 13%.
Southeast Florida’s real estate and rental and leasing industry has grown at a faster pace than nationally. In 2022, the value of services produced in this sector rose to $95.2 billion, up 27% from the level in 2019. Payroll employment rose 10% as of 2023 Q3 from the level in 2019, double the 5% growth nationally. The number of establishments rose 21%, also higher than the 18% increase nationally.
Southeast Florida’s Real Estate and Rental and Leasing Industry Supports the Growth of Small Businesses and Entrepreneurship
The real estate rental and leasing industry is a small-business creator. As of 2023 Q3, there were 17,325 establishments employing 77,610 workers in Southeast Florida, or an average of five workers per establishment. With an average weekly wage of $1,279, the estimated annual wages (assuming 52 weeks of pay) totaled $5.2 billion, or 10% of total private sector wages.
[1] The real estate and rental and leasing industry (NAICS 53) consists of establishments that rent/lease, buy/sell, manage, and appraise property for others.
