Real estate investors continue to flood South Florida with money and home purchases, according to a recent Redfin report.
More than $2.15 billion in Miami home purchases were made by investors during the fourth quarter of 2021, the seventh-highest dollar amount of the 40 major U.S. metros measured by Redfin. Los Angeles was No. 1 with $6.7 billion, followed by Phoenix, New York, Atlanta and Anaheim.
More than 27% of all home purchases in Miami during the fourth quarter were made by investors, the sixth highest percentage of metros in the report. Fort Lauderdale was No. 10 in the percentage ranking.
The top 10: Atlanta (32.7%), Charlotte (32.1%), Jacksonville (29.8%), Las Vegas (29.2%), Phoenix (28.4%), Miami (27.5 %), Orlando (25.9%), Tampa (24.2%), Nashville (21.4%), Fort Lauderdale (21%).
Investor dollars were followed by a surge in rents in South Florida. A Zillow report this month said typical annual rent rose $7,100 in the Miami-Fort Lauderdale-West Palm Beach area in 2021, the largest increase in the nation.
Nationally, real estate investors made 18.4% of all home purchases in the last quarter of 2021, a record high, according to Redfin. The report showed big jumps in investment in Sun Belt communities with median home values below the national average like Atlanta, Charlotte and Jacksonville.
“The lower price points are always popular with investors, and I don’t expect that to change. One of their main objectives is always to buy low and sell high,” said Redfin economist Sheharyar Bokhari. “But investors are also increasingly interested in higher-priced properties, partly because there is a lack of inventory at lower prices and partly because they are betting on the growing demand for high-priced rentals. range.”