Regional Review: Miami thrives as a business hub, despite housing concerns
Writer: Eleana 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 term.
December 2024 — Once a seasonal retreat, Miami-Dade has become a year-round hub for business and innovation, driving Florida’s rise as a Top Five state for business in 2024. With surging investment and corporate relocations, the city faces challenges like housing shortages and income inequality that could impede growth in 2025 and beyond.
“Miami continues to benefit from strong investor interest and abundant capital. Despite economic pressures, the region remains a highly attractive market for new residents, investment and businesses,” Avison Young’s Principal and Managing Director for Miami, Michael Fay, told Invest: earlier this year.
The city’s rise as a business powerhouse reflects its ability to attract companies, entrepreneurs, and talent across sectors. In August 2024, Miami’s private sector added 33,300 jobs, growing 2.9% year-over-year, the highest increase among the state’s metro areas.
Business relocation and startup activity also surged. Recent trends show the region benefiting from a steady influx of Fortune 500 headquarters, part of a broader migration of businesses to states like Florida, Texas, and Georgia.
Miami was also recognized as the second-best U.S. city for small businesses in 2024, according to a Coworking Cafe report. With 18% of the city’s workforce owning businesses, the city stands out as an entrepreneurial hub with 5,320 business applications per 100,000 residents.
While economic indicators are strong, Miami’s rapid growth has exposed a critical housing shortage. The region faces a deficit of 90,000 affordable housing units, threatening its long-term sustainability. Currently, about 14,000 units across 101 projects are in the pipeline but remain unfunded. These projects would provide housing for a range of income levels, from those earning less than 30% of the area median income (AMI) to moderate-income households earning up to 120% of AMI. However, $1.5 billion in financing is needed to unlock an additional $3.3 billion in subsidies and funding.
“Being a place everyone wants to live in can come with baggage: traffic, higher housing costs, etc. However, the chamber believes we are on the right track to addressing those issues by growing a higher-wage economy and producing a well-trained workforce to fill those new jobs,” Alfred Sanchez, CEO of the Greater Miami Chamber of Commerce, told Invest:.
Sanchez also highlighted legislative progress toward workforce housing. “We have made major strides in this area with the passage of new laws, like the Live Local Act, which has spurred a lot of development,” he said. “We are also committed to transit-oriented development, so we focus on ensuring density along the transportation corridors.”
Miami’s affordability crisis is further exacerbated by its stark income inequality, which ranks fifth nationally, according to a GOBankingRates study using the Gini Index. The city’s top 5% of earners make more than 50 times the average income of the bottom 20%. Moreover, the wealthiest 20% control almost 60% of the city’s wealth, while the bottom 20% hold under 2.5%, highlighting significant barriers facing lower- and middle-income residents.
Experts stress that addressing both income inequality and the lack of affordable housing is essential to maintaining Miami’s growth and ensuring that its economic success benefits all its residents. “Affordable housing is essential for Miami’s continued growth. As the city rises in prominence, we must ensure that housing remains accessible to a diverse population. This balance is crucial for maintaining Miami’s vibrancy and long-term sustainability,” Fay told Invest:.
The Live Local Act, introduced in 2023 and updated in 2024, is a promising step to address the crisis by incentivizing mixed-income housing development, streamlining zoning processes and supplementing Florida’s existing housing programs with tools like property tax exemptions for affordable developments and funding incentives for mixed-use, transit-accessible projects.
Infrastructure improvements and transit-oriented developments are key to ensuring Miami’s sustainable growth. The Northeast Corridor Rapid Transit project, part of Miami-Dade SMART Plan, has secured a $389.5 million federal funding pledge, making up 42% of its $927.3 million cost. Scheduled for completion in December 2027, the 13.5-mile rail line will connect Miami Central Station to Aventura, with stops in Wynwood, Little Haiti, North Miami, and FIU North Campus.
The project is expected to enhance mobility, expand economic opportunities, and improve quality of life for all residents. “Access to public transportation affects your ability to work, and economic stability influences your ability to afford nutritious food. We realized that improving community health requires engaging in urban planning and development,” said Didier Choukroun, founding partner, president and CEO of SPHERE Investments to Invest:. By connecting with Brightline and Florida East Coast Railway, the Northeast Corridor paves the way for the 85-mile Coastal Link, uniting Miami-Dade with Broward and Palm Beach counties and reinforcing the region’s commitment to sustainable, connected development.
As the metro area works to address infrastructure needs to accommodate growth, it is becoming a significant player in the technology and life sciences sectors. Miami’s strategic location, favorable tax environment, and proactive support from local leadership have attracted a diverse range of tech entrepreneurs and investors, adding new cultural perspectives and enhancing Miami’s growing global appeal.
Miami-Dade’s commitment to fostering innovation is showcased by events like Miami Tech & Invest Conference and eMerge Americas, which celebrated its 10th annual conference with more than 20,000 attendees from over 4,000 companies worldwide.
Moving into the year ahead, Miami’s growth will continue to diversify from its legacy industries — tourism, international trade, and real estate — toward becoming a hub for technology and life sciences. The city’s Health District, the second-largest in the U.S., provides a foundation for healthtech startups to innovate and test cutting-edge technologies.
This shift is reflected in Miami’s global standing as a tech hub, with the city climbing seven spots to No. 16 in Startup Genome’s ranking of the Top 20 tech ecosystems worldwide.
“Global leaders in finance and technology could open anywhere, but they chose us. These relocations bring more than just jobs — they also bring capital investment into their offices. And these are high-paying jobs, which is one of the key factors we look for when attracting companies. So, it’s a win for the city in terms of job creation, investment, and long-term economic growth,” said Mark Trowbridge, president and CEO of the Coral Gables Chamber of Commerce.
For more information, please visit:
