The High Demand for Townhomes in Miami – The Revival of Miami Townhomes

The Investment Value of Miami Townhomes

⇒ Townhouses are in high demand | Supply is low | Developers are finally responding to the high demand

We have written before about the ever increasing demand and values of Miami townhomes, as well as the great income opportunities that Miami townhomes bring alone. Today, we are still experiencing this trend and we noticed that more and more developers are acting upon the high demand from the market. While townhomes in Miami Beach and Coral Gables used to be extremely scarce or non existent, these days developers are seeing the huge potential and are starting to construct townhomes in these areas as well.

This blog focuses on the revival of the townhome market in Miami and it discusses some great townhome investment opportunities in specific neighborhoods or at specific projects.

The revival of Miami Townhomes – Why this sudden rise in demand?

Miami Townhomes are a hot commodity these days and you might wonder why.

1 Land is scarce

First of all, Miami is getting more and more populated and many empty lots have already been bought up by developers or individual investors. Ground is getting scarcer these days and everyone wants to be where the action is. With limited space, it is harder and less cost effective for investors to construct massive single family homes. Therefore, more and more developers are looking into the possibilities of townhomes, to get the best return on investment on a piece of land and to serve the ever growing demand for Miami townhomes.

2 Young families are looking to expand

Miami has attracted lots of young professionals in recent years (FYI Miami experienced a brain gain). Most of these young professionals are living in condos in Brickell, Downtown or Miami Beach. Once these young professionals start a family, many of them want to move out of their condo and into a house. For example, we have seen a huge influx of Brickell residents into Coconut Grove. Brickell is home to an always growing number of predominately young professionals who, once they start a family, want to look for a different lifestyle and switch their Brickell Condos for Coconut Grove homes or townhomes.

Likewise, for young professionals that are currently living in Downtown or Miami Beach the next step is to find a townhouse or single family home in these areas or somewhere close to their jobs. As single family homes are economically less attractive than Miami townhomes, most young families prefer a townhome. 

3 Townhomes are the best alternative between a condo and a home

Many of our clients are looking for townhomes because they don’t want to live in a condo anymore, but they don’t want to own a massive single family home either. Besides this, the burden of taking care of a large lot/garden isn’t on everyone’s wish list either.

Another factor that pulls many buyers or renters into townhomes is the trend of townhomes now being part of a luxury condo project. For example, the townhomes at the Paraiso project (stay tuned for that announcement) or the townhomes at the Collection in Coral Gables. These townhomes really offer it all; the multi-level and spacious living with a garden as well as state-of-the-art amenities.

Townhomes in Coconut Grove – The demand is high and prices are rising

Renters or investors that like to invest in Coconut Grove townhomes are mostly (85% of the time at least) looking for a 3 bedroom, 2 bathroom townhouse, preferably larger than 2,000 Sq.Ft. Most of Coconut Grove’s townhomes can be found in the North Grove, in a specific geographical niche of the market. In the table below you can clearly see that the high demand for Coconut Grove townhomes led prices to increase significantly. On the left hand side we see the actual average sales prices and on the right hand we can see the average sales prices per Sq.Ft

Income seeking investors, who are renting their Coconut Grove townhomes out, have seen an increase in their rental income over the last years as well.

Townhomes in Coral Gables – Many New Projects

Coral Gables offers many newer townhome projects just as Althea Row which is a brand new construction project (please see inserted video), the townhomes of Anastasia and the townhomes at Santander.