Florida added more newcomers in the 12 months ending July 1, 2021 than any other state but Texas. Citing estimates from the U.S. Census Bureau, FloridaPolitics.com reported the Sunshine State added 211,305 residents through both migration and immigration during that one-year period.
The population surge hugely benefited South Florida’s real estate industry, which profited from the incoming wave of home buyers and employers.
Forecasters are predicting Florida will again witness double-digit growth in 2022. Pricing will once more be propelled upward, with an already-tight inventory and pent-up demand from foreign buyers adding fuel to the blazing hot market. As the next wave of incomers arrives, a trio of trends will likely influence their housing choices.
Lifestyle flexibility
Perhaps in response to the fact so many hunkered down and sheltered in place for part of the pandemic, South Florida home buyers in 2022 are expected to seek flexibility to both travel and engage in remote work.
Developers seek to leverage that desire by delivering turnkey, fully-furnished residences purposely designed, built and licensed to be shared. Among the South Florida developments trumpeting fully-furnished, ready-to-occupy residences, Lofty Brickell, District 225 and Natiivo are a few of the more notable. All are positioned to provide owners with nice sources of income in the year ahead. That is, they will if the short-term rental trendlines of the past year continue to be witnessed.
AirDNA’s Industry Outlook noted average earnings for U.S. short-term rentals set new records in 2021. Those earnings rose 35% from the start of the pandemic, outstripping even home prices. In 2021 alone, listings earned 26.2% more revenue than in 2020.
Branded residences
The Miami area is a place where brand names resonate with upscale buyers seeking added confirmation of their elevated socioeconomic status. It thus makes sense that from Midtown to Miami Beach and Sunny Isles, a number of well-known and coveted brand names — of luxury cars, leading hoteliers and cutting-edge fashion houses — are branching out to leave their imprimaturs upon new residences. A few examples include Bentley Residences, The Standard Residences and Baccarat Residences. Observers expect the trend to accelerate with major brand announcements coming this year.
The most recent is St. Regis Residences Miami, from industry colossi Related Group, Integra, Robert A.M. Stern and Rockwell. The iconic St. Regis cache is reflected in the building’s every facet, from St. Regis’s signature butler service to its Tea Room.
Coworking and connections
Developers in South Florida haven’t overlooked the fact after too many months of social isolation in private spaces, folks crave the chance to forge connections through shared amenities. That is why one of the most observable trends is the inclusion of coworking spaces in virtually every new building’s amenity suite.
The spaces, which may take the form of shared board rooms, Zoom rooms or other, are offered in addition to other connective community elements. Pickle ball courts, wine rooms, karaoke bars and outdoor fire pits are among the gathering spots expected to be seen in greater profusion in 2022.
Upcoming enclaves
In South Florida, it’s worth watching not only real estate trends, but entire fast-rising Miami neighborhoods as well. One of the more prominent domains promises to be the $1 billion Magic City Innovation District, slated to break ground this year.
The district will feature a pedestrian-friendly campus-like setting offering residential and commercial spaces focused on experiential and sustainable lifestyles. Leveraging its blend of innovation and culture, the 18-acre development is likely to invite additional business and tourism investment across the city for which it is named.
Another tableau generating buzz among locals and tourists alike is Midtown, a nook wedged between Wynwood and The Design District. The walkable enclave serves as the setting for a number of crowd-pleasing eateries and attractions, from Lagniappe and Sugarcane to one of the newest outposts of Trader Joe’s.
Meantime, Brickell Financial District commands attention as the “Wall Street of the South.” Tech and financial employers like Microsoft, BlockTower Capital and Millennium Management — as well as a highly walkable live-work-play lifestyle — are luring young, entrepreneurial, well-heeled home buyers to residential developments like Lofty, Waldorf Astoria Residences, Major and 1 Southside Park.