Conditions in South Florida favor buying, but buyers should proceed with caution. The Miami metro area's housing market is volatile and while it's likely that buying will work out better than renting over the course of seven years there are factors that could put your investment at risk.
Many of the home sales here are discretionary, meaning properties are bought as vacation homes or investments -- both of which are subject to economic booms and busts. Also, when politics grow heated in many Latin American countries, foreign buyers flock to Miami to park their assets. That can add a boost to the local housing market at times, and hurt it at others.
Trulia expects home prices to appreciate at about 2.3% a year here, which is still enough for buying to be the better choice -- at least, for now.
% saved buying: 38%
Median home price : $300,000
Median rent: $2,250
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