Residential and commercial real estate have been deeply affected by COVID-19. Both the market and the people who participate in it have proven to be versatile and resilient in these hard times.

Commercial

Commercial real estate, despite having been on pause for 2020, has made a comeback. Demand has gone back up as lockdowns are lifted and people want to be in a physical office now more than ever. Buyers changed what they desire in listings such as air circulation and open space for social distancing, and the market had to adjust accordingly. 

Residential

The residential market, like commercial, froze in place during the opening months of the pandemic. Presently, however, there is an issue of high demand and low supply as the market struggles to keep up with an increasingly competitive clientele. Prices have also gone up compared to last year as there were no changes in numbers in 2020.

Overall, the impact of the pandemic has brought many opportunities for investors leading to a saturation of the market.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

As the population continues to grow in the United States, so does the real estate market. With more people in need of homes, real estate must adjust to the fluctuations in population in order to meet the high demand. During 2020, Miami had experienced an influx of people traveling to and around the city in hopes of enjoying quarantine protocols in warmer weather. According to Forbes, the real estate market in southern Florida was in “Super-Boom” mode. However, with this growth comes challenges to real estate agents and investors, for they must keep up with the high demand.

How fast are we growing?

According to the U.S Census Bureau, the United States has a population of approximately 330.2 million citizens, in which the number has been on a steady incline since 1920. For Miami in particular, 2.7 million people reside in Miami-Dade, and more are looking to move for retirement or other reasons.

What does this mean for real estate?

A growing population puts pressure on all sectors of the economy. Because the population in Miami is growing, economies must match that growth to prevent falling behind. When the demand for houses increases, so will the prices of homes. Additionally, an overall growing population can cause a shift in demographic populations, changing the demands put in place for certain groups of people. The need for single-family homes is at an all-time high in Miami-Dade, causing price increases for those looking to buy.

Overall, the Miami real estate market will follow the demand of the citizens. This also includes a need for roles such as developers, landlords, and financial institutions.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Like many other markets, COVID-19 had a noticeable impact on the real estate market. With stay-at-home orders put in place, potential buyers were forced to halt their search, causing a significant drop in home sales. April and May 2020 in particular saw the largest drop, which was the lowest level since the 2008 financial crisis. COVID will forever change the way the world operates, but a brighter future is in store for the real estate market. In Miami, the real estate market has experienced a boom in sales post-COVID, for Miami quickly became a desired destination. Here are a few reasons why:

Outdoor Space

Because of the stay-at-home orders in place, people have been spending more time outdoors. Recently, there has been a demand for homes with outdoor amenities, such as a patio, gazebo, swimming pool, cabanas, etc.

Demand for Second Homes

In 2020, people were unable to travel to their favorite vacation destinations. In order to stay within social distancing guidelines and other precautions, the demand for second homes has risen significantly, for households have been purchasing these vacation homes to get away without the fear of COVID.

Migration from cities to suburbs

COVID-19 has caused many people to move out of cities into their own space. In particular, people in their 30s and 40s, causing the younger generation to have a majority population in the suburbs. As people are looking to settle down and escape COVID-19, this shift has caused a high demand in suburban homes.

Developments in Miami have allowed buyers to make purchases during COVID, ranging from home buyers and businesses to investors. The real estate market is headed in the right direction, and with new trends, the demand for homes is still at a high.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.