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
[blog updated on December 7th, 2015]
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.
Read more about the town homes at the Collection Coral Gables
The revival of Miami Townhomes – Why this sudden rise in demand?
Miami Townhomes are a hot commodity these days and you might wonder why.
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.
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.
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 4 years as well.
Townhomes in Miami Beach – A new era has started
The Miami Beach market has almost no inventory of townhomes. The market is a pre-dominantly single family homes and condo market. Miami Beach homes are either slightly dated and in need for renewal (but more affordable) or they are the multi-million mansions along the La Gorce Golf Course or on one of the many exclusive islands.
There is a severe lack of inventory for those families or young professionals that don’t want to live in a condo anymore and that want to start with a home that fits a $500K-$1M budget. Looking at the market in Miami Beach right now, there are 35 listings for townhomes, which is an extremely low number and only 20 of them are below the $1M price.
Change is coming
Miami Beach is now reacting to this gap in the market. While a few years ago the combined condo and townhome project of “Artecity” sold out in a heart beat, we haven’t seen much new “affordable” townhomes in recent years. One of the newest and affordable townhomes that were built in Miami Beach are the townhomes at 619 Meridian avenue.
These brand new townhomes on Miami Beach sold 4 out of the 6 units already and now have 2 units left for sale. These 2 townhomes on 619 Meridian Avenue are listed for $599,000 and offer 1,200 Sq.Ft with 2 bedrooms and 2 bathrooms.
The developers of the townhomes at Meridian Avenue told the David Siddons Group that more townhome projects are about to come…so stay tuned
Another recent townhome project on Miami Beach is Iris on the Bay. Iris on the Bay was announced last year and offers 43 waterfront townhomes in Miami Beach with 3 and 4 bedrooms ranging from 2,152 to 2,509 Sq.Ft.
Prices ranged from $824,000 to $1,131,000 when Iris on the Bay first started selling. For the latest inventory and prices please contact the David Siddons Group at +1 305 508 0899 or firstname.lastname@example.org.
The Townhomes at the brand new ‘Downtown Doral’
The area which was once known as a suburb of Miami is reinventing itself with a massive influx of South American capital. Doral is cleaning up shop and lots of new pre-construction projects are being developed around the Doral Golf Course. One of these projects is called “Downtown Doral”. This brand new project also offers some multi-story townhomes. One of our team members visited this project the other day and she was impressed.
The Townhomes at Modern Doral are multi level, 2 or 3 bedroom residences. Like all of Downtown Doral, The Townhomes are pedestrian and bicycle friendly day or night. Tree-lined shaded streets, lush green space, wide sidewalks and a grand boulevard entrance are perfect for strolls and strollers. Residents and their guests can soak up rays on the sun deck, cool off in the resort-style pool, enjoy an afternoon barbecue at the grills and play with the little ones.
Other newly announced townhomes in Miami
The Villas at Pinecrest is a collection of 18 luxurious and contemporary villas. The 18 unique residences feature 3 stories, 4 bedrooms, 3 bathrooms, a 2-car garage as well as fine finishes and high quality bathrooms and kitchens. These brand new residences are located in a gated community in Pinecrest.
Ocean Seven Surfside Beach offer just 7, 4-story luxury townhome residences with amazing views on a great location in the city of Surfside, just moments north of Miami Beach and steps away from Bal Harbour.
One Bay Residences in the Design District of Miami are one of a kind, luxurious and contemporary townhomes in a brand new and gated community. They are the first townhomes in a gated community within the booming and ever evolving Design District. The One Bay Residences are expected to be delivered in the fall of 2016.
101 Bay Harbor consist of 12 ultra chic Bay Harbor Island Townhomes , close to Bal Harbour and the Bal Harbour Mall. The community of Bay Harbor Islands is an exclusive enclave of gated, modern and luxury residences. Located just a few steps away is the Ruth K. Broad K-8 Center.
The 21 brand new town homes in Coconut Grove will be three-story residences and are expected to be delivered by Q2 2017. The developer commented that Grove Place brings two unique qualities to the current Coconut Grove town home market: its location, a block away from the Metrorail, and the ability to customize the unit.
For more information on Miami Townhomes for sale or the investment value of Miami Townhouses please contact the David Siddons Group
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