Why Miami is an Expensive City

Why Miami is an Expensive City

Land rates in Miami have been raised by the entry of visitors into the city. The target market for property developers has shifted from residents to visitors. Locals have found real estate rates to be too steep, leaving such properties to be bought by non-residents as summer homes. People who visit Miami are often frequenting the city for leisure and are extravagant spenders. Developers take advantage of this situation to charge a premium fee for all sales. The fact that somebody is always ready to pay these expensive rates is the top reason why property tends to be so costly.

Non-residents have made it too costly

Non-residents have made it too costly for the locals to buy or lease property for the locals, making them opt for alternative living arrangements. In the city of Miami, you will find residents with living arrangements that allow for cost sharing. This has made it possible for Miami residents to afford to live in the city by making a compromise on their privacy. Property developers are constructing grand summer homes that are likely to attract foreign visitors. Rarely do you find minimalist designs in the building since summer homes have to stand out. The architectural style used makes buildings in Miami costly due to the grand nature of all construction projects.

Government involvement in Miami's real estate

Government involvement in Miami’s real estate sector is low, with private developers taking a leading role in the provision of housing. Private developers care about their bottom line and target to make as much profit as they can from the housing sector. The government’s affordable housing project is not treated as a top priority and has contributed to the dwindling popularity of public housing. Public housing is poorly funded by the state of Florida since Miami is treated as more of a tourist destination. No checks have been put in place to tame runaway prices by local authorities.

Why Miami is an Expensive City

Public transportation in Miami is a menace because the local authorities have not invested as much in it. Without private means of transportation you will have a hard time navigating the city as there is no vibrant supporting infrastructure. This situation has risen in prominence with residents being forced to live further from the city center to get affordable residency. Most city dwellers in Miami are individuals of considerable financial means. They can afford to move around Miami in high-end luxury vehicles. This is the reason the government has not pumped as many resources into developing a robust public transit system.

Miami is a beautiful city with plenty of scenic views to offer. Beach houses are expensive to purchase because of the high demand. Esthetic appeal makes the houses go up in value when compared to houses in locations that are not as scenic. Proximity to Miami Beach is the leading factor in cost inflation for new home buyers. Visitors to Miami prefer to purchase buildings in prime locations, but the high demand translates to an increase in the cost of purchase. Buyers are willing to meet sellers at the highest rates charged by offering competitive quotes to get a chance to own a slice of Miami.

Florida enjoys a relatively warm summer, and Miami offers the perfect beach setting to enjoy a sunny escape with proximity to the ocean. When tourists visit the city of Miami, hotel owners raise prices for accommodation to make a kill while the season is still in its prime. Charging tourists at costly rates is a common practice that falls within a popular belief that tourists have immense spending power. A resident of Miami suffers inflation every time summer comes calling as he is pooled with tourists. Tourism is regarded as a luxury sector, and prices for all services tied to ensuring a memorable stay in Miami are therefore greatly inflated.

To cater to the large population of wealthy residents and rich tourists, Miami is populated by the best hotels. Restaurants in Miami are of world-class repute, making their meals costly. Besides fancy restaurants, Miami’s shopping district is filled with top designer outlets to serve its rich population. Exclusivity is key in certain circles of Miami, requiring Miami dwellers to part with substantial amounts of money to join exclusive clubs. Fancy clubs make partying in Miami an expensive affair that promises an exquisite experience for somebody who is fairly new to Miami’s vibrant life.

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