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Southeast Florida’s Real Estate Industry’s Contributes to Economic Growth and Wealth Creation

Economic Insights
Economic Insights from the MIAMI REALTORS Chief Economist

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.

[2] Economic Insights – MIAMI REALTORS®

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