Should you rent or buy a home in Miami Beach?

Posted by in Advice

Miami Beach just ranked 38th in the top 100 most livable cities in the United States, according to the 2015 Best Places to Live rankings by Livability.com.

The Livability article cited Miami Beach’s excellent waterfront access, amazing dining options and plethora of cultural attractions among its best features.

“Sultry beaches, sizzling restaurants, wild nightclubs and the largest collection of Art Deco architecture in the world make Miami Beach one hot place to live,” Livability said. “Golf courses, museums and shopping centers provide more entertainment options. Miami Beach has attracted a diverse group of residents and draws thousands of tourists.”

So for all of those that now want to move here, the big question is…

Should you rent or buy a home in Miami Beach?

Miami Beach currently has a median household income of $43,321 and a median home price of $333,000, and a population of 88,628 according to Livability. The average rent in Miami Beach is $2200. So should you rent or buy a home in Miami Beach? Using these current figures, it makes much more sense for you to buy a home in Miami Beach, rather than rent a home in Miami Beach, with a savings of more than 35% by buying rather than renting. Trulia found in a separate study in October 2015 that buying is 23 percent cheaper than renting nationally, but in Miami there’s an even bigger difference: it is 43% cheaper to buy a home here rather than rent.

Miami Beach home buying isn’t without risk though; many of the home sales here are discretionary purchases, meaning that they are purchased as investments or as vacation properties; both of which are highly subject to economic booms and busts. Additionally, when politics in Latin American countries become volatile, those foreign buyers flock to Miami to park their assets in Miami Beach real estate. This fluctuation in foreign property investment typically will profoundly boost the local market at times, and hurt it at others.

Contact Stavros Mitchelides, Miami Beach Realtor to chat about your needs, or if you’re ready to begin looking for your new Miami home, start your Miami real estate search now!