Coral Gables is a great place to live, but that isn’t reason enough to pay around twice as much as you’d pay in Miami for a house. Let’s look at a few reasons why Coral Gables real estate is so expensive but worth the price. We’ll also address factors that inflate home values relative to Miami and keep them so high.
It Is the Front Door to the World
OK, this title can go to Miami as a whole. And there are plenty of rich people from around the world investing in Miami condos as a form of tax shelter and way to have a place to stay if they have to flee their homeland. But if you have a choice, do you buy a condo in downtown Miami or one in more upscale Coral Gables? It has better shopping, superior schools and greater safety. The quieter community is a better choice if you have children or are retired.
It Is Home to the Luxury Properties
One factor skewing the average price of Coral Gables homes is the sheer number of multi-million dollar properties. A few 100 million dollar mansions will raise the average price tag for homes in the area by a fair margin. And Coral Gables has several subdivisions where the cheapest property is several million dollars. People also pay a premium to be on the water or have access to the sea via the many canals. In these areas, the non-water-front properties sound cheap at a million dollars.
The Midmarket Is Gutted
Miami on the whole is undergoing a feeding frenzy. The downside of being a globally recognized city is that the elites will buy homes in the area, often only visiting from time to time. That drives up the cost of real estate while consuming units that could be used by local residents. Miami’s tourism based economy also creates many people who can’t afford middle class homes but compete for them because there’s little in the “affordable” range. This means that middle market homes like 1500 square foot properties in a good neighborhood can hit 400K or more. Why not move a few miles down the coast and buy a half million dollar home in Coral Gables? It may be one of the cheaper homes in the zip code, but it is in one of the most expensive real estate markets in the state. Any home is close to shopping, schools, and in most cases, the water. The upgrade to the Coral Gables real estate gives you everything you want that only comes with an expensive, luxury property in Miami proper.
The Rental Market Drives Up Property Values
While nearly two thirds of Americans own their home, Miami has more renters as a percentage of the population than New York City. There is such a disconnect between real estate prices and average incomes that many simply can’t afford to buy a home, so they rent. Just over sixty percent of Coral Gables residents own their homes. Yet many want to live here. The end result is high rental rates for available properties. Gross rent surpasses 1500 dollars a month, several hundred a month above the Miami area average.