Writer: Andrea Teran
Regional Review is a year-end series from Capital Analytics that looks at key developments throughout the year and sets the stage for what’s to come in the near future.
3 min read December, 2023 — As 2023 comes to a close, Miami has emerged as an area of economic resilience and prosperity – a result of strategic investments, forward-looking policies, and historic milestones. The Magic City has experienced a boom in sports and tourism and has introduced innovative housing legislation, paving the way for ongoing growth. Reflecting on Miami’s pivotal year, we consider its progress and look ahead to 2024.
Florida’s economic milestones
In conversation with Invest:, Daniella Levine Cava, mayor of Miami-Dade County, shed light on Miami’s commitment to nurturing its entrepreneurial ecosystem. She stated, “One of the important things I’ve done during my term is focus on local entrepreneurs and making sure our local startups can scale up. This involves ensuring that the jobs that the new industries need are fueled by our local workforce.”
While the country faces slowing job growth, Florida has excelled. For 29 consecutive months through October 2023, it was a leader in labor force expansion. The state’s private sector has also seen a 31-month run of year-over-year growth, outperforming the national rate, as per a FloridaCommerce press release. Miami boasts a 2.5% year-over-year increase in nonfarm jobs, adding 69,700 positions, as reported by the U.S. Bureau of Labor Statistics. Key industries driving this surge include trade, transportation, and utilities, along with professional and business services, indicating a vibrant employment landscape.
Strides in housing affordability
Miami faced significant challenges in 2023, being named the least affordable U.S. housing market by the RealtyHop Affordability Index. The median home price in Miami has soared to nearly $600,000, claiming 80% of the average local family’s income once mortgage and taxes are factored in. Miami-Dade is grappling with a shortfall of 135,000 affordable units for low-income renters. To combat this, earlier this year on March 29, Gov. Ron DeSantis signed the Live Local Act (Senate Bill 102), committing $711 million to state housing initiatives, including down payment assistance and military community support, nearly doubling the previous year’s funding.
“We have invested historic amounts in housing affordability, including the HOMES program. This provides everything from subsidized rents, renovation costs to keep houses affordable and dollars for development,” said Mayor Cava.
Tourism records and economic indicators
Miami-Dade and the Florida peninsula have hit new tourism heights in 2023, with a record-breaking 35.1 million visitors in 3Q23 and a total of 105.2 million visitors in the first nine months, surpassing previous years’ figures. The Greater Miami Convention and Visitors Bureau has played a pivotal role, reporting a 3.5% increase in visitation year-over-year and a significant boost in hotel bookings thanks to strategic event planning and marketing initiatives. This surge has contributed over $20 billion to Miami’s economy, underlining the city’s burgeoning appeal as a global destination bolstered by innovative tourism campaigns and a welcoming atmosphere for all visitors.
Sports bring a multi-billion dollar boost to the local economy
Miami is experiencing an unprecedented sports renaissance, with the signature Miami Grand Prix and the arrival of soccer legend Lionel Messi catapulting the city into a global sports hub. The Grand Prix’s second edition in 2023, drawing over 270,000 fans and contributing $449 million to the local economy, solidifies its significance. Messi’s impact is felt far beyond soccer, with skyrocketing ticket prices by more than 1,700%, sold-out stadiums, and ripple effects across transportation and real estate. As Miami gears up for the 2026 FIFA men’s World Cup and with ongoing developments, the city is well on its way to becoming the undisputed sports capital of the world, leveraging sports as a catalyst for economic growth and global recognition.
Tom Garfinkel, vice chairman of the Miami Dolphins and managing partner of the Formula 1 Crypto.com Miami Grand Prix, underscored Miami’s position as a truly global entertainment destination, emphasizing the city’s role in hosting major events like the Super Bowl, Formula 1, the Miami Open tennis tournament, national championship games, boxing matches, concerts, and soon, the World Cup. In an interview with Invest:, Garfinkel stated, “When you look at the combination of all of these events, we’ve had almost a billion dollars of private investment into the site now.”
