On Nov. 16th, Miami’s city commission voted to unanimously reduce the minimum size of residential units from 400 SF to 275 SF.
Key Points on new Micro Designation:
- Minimum residential unit size reduced to 275 SF from 400 SF.
- Can only be built within transit oriented areas, defined as being within 1/2 mile of Metrorail and Metromover stations.
- No parking minimum set, parking maximum of one spot per unit set.
The new micro designation, along with its easing of parking requirements, is a fantastic, forward-looking move and should go a long way towards easing Miami’s affordable housing shortage.
The new designation, along with Miami21’s existing flexible mixed-use zoning, allows for development of:
- Experience and amenity rich properties.
- Smaller and more affordable units in Miami’s urban core.
- Properties targeting millennials, creative professionals and people preferring to live in a walkable, urban core.
- Forward looking, urban projects that have a lessened reliance on automobiles.
- Community-centered properties, with co-living and co-working spaces.
- Properties that address Miami’s affordable housing shortage.
Miami's Micro Designation is in Alignment with Powerful Trends
Miami has a shortage of affordable housing – people are actively seeking out less expensive rent.
Rents in Miami’s urban core keep going up, so people are venturing out to less central neighborhoods in search of cheaper rent.
A one bedroom apartment is now averaging $1,300 in Little Haiti, while in Brickell the average price for a one bedroom is $2,100.
Miami-Dade’s median income is $44,000, making rent in the urban core out of reach.
66%+ of renters are cost burdened, one of the highest rates in the nation. There is an affordable housing shortage.
The Miami-Fort Lauderdale-West Palm Beach metro area is one of the most cost-burdened areas for renters in the country, with 61.6% spending more than 30% of their income on rent. Furthermore, 35.2% of renters are severely cost burdened.
Miami Condos up to $325K are out outperforming the market – this is the micro unit price point.
At price points higher than $235K, Miami has seen a steady drop in condo transaction volume since 2013.
The market segment from $200K – $325K is the only segment of the Miami condo market to experience sales volume growth.
Charts below shows quarterly sales volume, through Q3 2017.
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