Is Miami the new New York City?

Ditching New York City’s cold winters and high costs for Miami is a tried-and-true escape. But anyone chasing a lower cost of living should brace for serious sticker shock: For the first time, the Miami metropolitan area is actually pricier than greater NYC. Here’s why, and how to navigate this new world, from Daniel Ickowicz of Elite International Realty.

Average home price: $583,705 (up 1.4% YoY, per Zillow)
Homes that sell over list price: 8.9%
Homes that sell under list price: 78.6%
Average rent: $2,965/month

How he got started: Nearly 40 years ago, Ickowicz’s family fled Brazil after the kidnapping of his father’s business partner. After settling in Miami, this former travel agent carved out a niche helping former clients land real estate nearby. Ickowicz joined the family business and saw firsthand just how quickly homes here could appreciate: After buying a one-bedroom condo in Miami Beach in 2003 for $159k, he doubled his money three years later by selling it for $375k.

His market’s pros: “One of the biggest advantages of investing here is that demand comes from so many different places: local buyers, people relocating from other states, and a very strong international demand,” he says. Many foreign buyers treat Miami as a store of value, showing their confidence in the area’s long-term prospects.

The cons: “Miami is not cheap anymore: Insurance, property taxes, condo fees, and assessments can significantly change the numbers, so you really have to understand the true carrying costs,” says Ickowicz.

His advice: If you’re buying a condo, “spend as much time understanding the association’s finances, reserves, insurance, and potential assessments as studying the unit itself,” he says. He also encourages investors to look beyond the usual areas and explore further afield. Ickowicz recently repped a buyer who bought land in Coconut Grove for $950,000, built a home, and sold it for $3.44 million. “It’s a great example of not just buying a house and waiting for it to appreciate,” he explains. “It was about identifying the right place and developing the right house for that neighborhood.”