Mrs. Julia Tuttle founded the city of Miami. On July 28, 1896, the city of Miami incorporated. Mrs. Tuttle predicted at that time that someday a great city would arise on that spot and become the gateway to the Americas.
The first real estate boom was in 1910 based on newly drained land. The first skyscraper, built in 1912, was Burdine Department Store. There was a Miami real estate boom in 1925 with about one-thousand subdivisions developed. Miami expanded in size from 13 to 43 square miles.
By 1950, Miami had a population of 172,000 and was a major tourist destination. From the 1960s to the 1980s, many Cubans fled Castro’s Cuba to move to Miami. Then the influx of drug money from cocaine caused another real estate boom and the beginning of building skyscrapers.
Home prices were flat during the 1990s, with the average home selling for around an inflation-adjusted price of $200,000. Then in 2000, another real estate boom occurred. This time it affected both Miami residential real estate homes and commercial properties on a very large scale. Average home prices soared to an inflation-adjusted price of over $450,000 by 2006. Skyscraper construction went up as well. Twenty of Miami’s tallest twenty-five buildings went up after 2005.
Starting in 2006, prices fell in the Miami real estate market. The average home lost about half its value between the years of 2006 to 2009 and the inflation-adjusted price of an average home dropped to a low of around $200,000. All major skyscraper projects completed by 2009, with none built in 2010. New Miami commercial real estate building projects, for the most part, went on hold due to the worldwide financial crisis.
Currently real estate in Miami is experiencing a major rebound. This is because Miami is a great place to live and foreign investors saw the lower housing prices as an outstanding bargain. In 2014, the average inflation-adjusted home price is $275,000. Clearly the trend is for the home prices to rise again, yet the prices now are still very good values.
Miami has spectacular weather, great beaches, a diverse culture, wonderful entertainment, and marvelous food. Miami is a cosmopolitan international city that has truly become the gateway to the Americas as predicted by Mrs. Tuttle in 1896!