Reso 2026-3963 - Laserfiche WebLink

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MIAMI-DADE COUNTY AREA & ECONOMIC OVERVIEW (Continued) A total of 2,747 new housing units were authorized by building permits in Miami Dade County during the first quarter 2025, 1.9% higher than the level of the fourth quarter of 2024. Multi -family housing permitted during the first quarter of 2025 was 2.3% less than in the fourth quarter of 2024, but single family units permitted was 32.6% higher. Housing starts in 2024 totaled 10,461 units, 26.9% less than the total for 2023. In 2025 starts are forecast to increase by 1.1 % to an overall total of 10,574 units. Multifamily starts totaled 8,547 units in-2024, a 32.8% declined from the level of 2023 and in 2025 they are forecast to total 8,684 units, 1.6% higher than the total for 2024. Single family starts totaled 1,914 units in 2024, up 20.6% from the level of 2023 and the 1,890 units forecast for 2025 is 1.3% less than the total for 2024. Between 2020 and 2022, Miami -Dade County experienced an unprecedented net influx of wealth, amounting to more than $9.5 billion. The primary factors fueling this migration include affluent individuals relocating from the Northeast and West. Moreover, employment growth in the region has outpaced the national average since the pandemic, largely driven by the emergence of new, high -paying office jobs. While this influx of wealth and higher -income jobs have increased consumption, with real retail sales remaining 20% higher than pre -pandemic levels, the area has also seen a significant increase in its cost of living. Despite moderating from double-digit levels in 2022, inflation in South Florida remains elevated. Significant increases in shelter costs have driven this higher inflation, as the tri-county area has seen home pricing appreciation of over 60% and double-digit apartment rental rate increases since 2020. However, with a slowdown in office -related job growth and domestic migration, the growth of housing costs has begun to decelerate. As of the first quarter of 2025, shelter costs in South Florida are rising 3% annually, a sharp decrease from the over 17% increase observed in early 2023. An increase in new apartment supply, particularly in the luxury segment, has helped curb rent growth. Additionally, a rise in available homes for sale, coupled with a slowdown in buyer activity due to high interest rates, has contributed to the stabilization of home prices. Looking ahead, the shortage of affordable housing will continue to drive cost pressures in the county. A recent University of Florida study found that approximately 116,000 affordable units are needed by 2030. While initiatives like the Live Local Act aim to tackle this housing crisis, some local governments have pushed back, citing concerns that the law overrides local zoning authority on building height and density. Currently, there are few affordable housing projects in progress, and a significant increase to meet the University of Florida's projections is yet to be seen. Since 2015, Miami has added over 63,000 units, predominantly luxury apartments, leaving a considerable gap in affordable housing. Furthermore, as job growth in the coming year is expected to be driven largely by lower -wage sectors such as construction, arts, entertainment, and education, the demand for affordable housing will likely continue to grow. The table on the following page illustrates the local employment statistics. 13 551