M
iami's real estate market is feeling the pinch of President Donald Trump's immigration crackdown, which is making it harder for foreigners to buy and rent homes. This comes as the city, like much of the US, was already experiencing a slowdown in home sales due to higher mortgage rates and record prices.
According to Redfin Corp., home sales in Miami are down 17% from last year, nearly six times the national decline. Properties now spend a median of almost 100 days on the market, more than twice the US rate. In the rental market, prices for one-bedroom apartments have plunged 16% in the past year.
Real estate agents say that uncertainty over immigration policies is paralyzing the market. "Some people are afraid - they want to buy or rent, but they say, 'How can I if I don't know if next year, or next week, my visa is going to be extended or not?'" said Maruja Gil, a real estate agent with Keller Williams Capital in Miami.
Trump's policies have rolled back refugee and asylum programs, affecting thousands of people in Miami. Florida has also augmented federal immigration efforts with tough state laws, including mandating the death penalty for undocumented immigrants convicted of capital crimes. Recent arrests of suspected "criminal" immigrants in Florida have added to the uncertainty.
Real estate is a significant contributor to Florida's economy, generating almost a quarter of the state's economic activity. However, the industry is now facing a slowdown, with sales down and housing inventories at record highs across the state. Squeezing immigrant buyers doesn't help, people in the industry say.
One Miami agent reported that two-thirds of his clients in the high-rise luxury market have scrapped plans to buy due to concerns over immigration rules. Another said that demand isn't only down among visa holders but supply is also growing as some owners look to sell their homes and buy elsewhere.
The Trump administration's policies are also weighing on the lower end of the market, with landlords asking for proof of US citizenship or a long-term visa before renting a home. The cutting off of Federal Housing Administration mortgages to non-US citizens or permanent residents has added to the pressure.
"This is already having an impact," said Alexander Jose Gandarilla, a mortgage consultant and CEO of iFinance Florida in Coral Gables. "And it's only going to have more of an impact."
