Greetings Real Estate Investors!
We hope you are having an amazing year and as it is starting to wind down it is again time to reflect on what we are thankful for. This year we are going to focus on something that is unique to the ecosystem of South Florida in that exists nowhere else in the world… The Everglades! The Everglades is a complex interconnected system of marshes and wetlands that is known to locals as a river of grass. And while it is an impressive natural phenomenon that we are indeed proud of as South Floridians, the purposes for this blog post are to espouse the incredible financial benefits that the Everglades will continue to confer upon South Florida real estate investors in the decades to come.
One reason for this is simple…you can’t build on wetlands as vast as the Everglades…and even if you technically could you probably wouldn’t want to.
Another reason is that the area is also protected by the Urban Development Boundary which does not allow development west of a designated boundary.
This creates a major Supply Vs. Demand issue for land in Miami-Dade and Broward County that is far more intense than almost any other major metropolitan area…perhaps the closest geographically limited comparison is the island of Manhattan.
And that of course means that values of land, property and rents will continue to rise exponentially in the coming decades.
Here is an image of the Urban Development Boundary in Miami-Dade…
Development has already extended basically to the UDB which is causing many developers to begin infill development where they are going into older neighborhoods and demolishing homes and selling them for a higher value than other houses in the neighborhood. Additionally, rents continue to increase as population continues to grow.
As a matter of fact the Miami Herald published a report predicting 700,000 new renters in South Florida by 2030. So the demand is increasing greatly and thanks (get it?) to the Everglades and the Urban Development Boundary the supply is limited.
So the implications of this land shortage are that now is probably the cheapest that real estate is ever going to be in South Florida. When you combine that with the fact the South Florida is still priced lower than most major metropolitan areas you have even more reasons to be thankful.
As you are toasting your families and enjoying the coming holiday remember in the back of your mind that you also have much to be thankful for as a South Florida real estate investor. And one final thing you can be thankful for is having access to one of the premier property management companies in the country with Real Property Management Miami ready to help you work less and earn more. For more information on how we can put more money in your pockets and help you run your investments like a business give us a call at 305-517-3900.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.