Miami-Hialeah, Florida The Miami-Hialeah metropolitan area (Miami-Dade County) housing market underwent significant changes during the 1990s. Hurricane Andrew in August 1992 triggered a large out-migration of the population whose homes had been damaged or destroyed. A significant in-migration from outside the United States, primarily from the Caribbean Islands and Central and South America, also occurred during the decade. The net effect of these changes was that population in the metropolitan area grew an average of 31,850 per year, or 1.4 percent, to 2,253,362 at the time of the 2000 census, a rate of growth nearly identical to the growth from 1980 to 1990. Currently, the estimated population is 2,341,000. Nonagricultural wage and salary employment averaged 1,040,800 for the 12 months ending November 2002, an increase of only 7,600 jobs, or 0.7 percent, over the same period a year ago. The small increase reflects the stagnant economic conditions in the area: The economy is partly dependent on tourism and business travel, which, although up somewhat from the low levels observed immediately following September 11, 2001, have not wholly recovered. Employment in eating and drinking establishments as well as hotels and other lodging places remained flat during the past year. In addition, an estimated 25 percent of all overnight visitors to Dade County are from South America, Central America, and the Caribbean; because of continuing economic problems in these regions, there has been a decline in tourist expenditures, although the number of visitors has not changed. Building permits were issued for a total of 14,233 units during 2002, up 237 units from the unusually high number issued in 2001. Total permits reached 14,000 only twice since 1989—in 1995 and in 2001. Single-family permits fell from 6,828 in 2001 (the highest number since 1995) to 6,372 in 2002, a 6.7-percent decline. The total for 2002 exceeds the annual average for the past 6 years, indicating that the market is still strong. Multifamily permits issued increased from 7,168 in 2001 to 7,861 in 2002, or 9.7 percent. This year marks the second consecutive year that multifamily permits have increased and the third year in the past 4 in which multifamily permits have exceeded 7,000 units. In the Miami area various types of sales units, such as condominiums and townhouses, make up a significant portion of multifamily units. Even so, growing evidence exists that the production of multifamily units has exceeded demand in the metropolitan area. Occupancy in units completed 18 months ago or more fell to 95.7 percent this quarter, 0.3 percent lower than in the third quarter of 2002 and 1.2 percent lower than a year ago. Rents averaged $942 during the fourth quarter, up only 2.3 percent from a year ago, but they posted a $15 decline from the third quarter, the first quarterly decline in 4 years. Northeast Dade County is likely to be hardest hit by declining occupancy. According to M/PF Research, Inc., the submarket had nearly 5,000 units under way in October 2002, with 3,783 of those units found in projects scheduled to finish construction through the third quarter of 2003. By contrast, they anticipate absorption for the year ending with the third quarter of 2003 to be only approximately 2,520 units, precipitating a 0.7-percent drop in occupancy and making this submarket the most competitive in the South Florida region in the coming year. Fueled by low interest rates and a lack of confidence in the stock market, new home sales reached 4,956 through the first 3 quarters of 2002, more than were sold in any full year since 1999. The most active submarkets were Cutler Ridge and Miami Lakes. The market for new condominium units was also very active. Through 3 quarters of 2002, sales totaled 3,629 units compared with 2,090 units in the first 3 quarters of 2001. Existing single-family homes were also selling at record levels in the metropolitan area. Through the first 3 quarters of 2002, a total of 28,716 sales were recorded compared with only 19,879 for the same period in 2001. The median price for an existing home was $138,000 in the third quarter, an increase of 3.2 percent over the second-quarter figure of $133,700. Sales activity in existing condominiums mirrored that of the single-family market in 2002.

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