9 / 28
2017 MIAMI RETAIL
Major Markets Report
|
9
ShadowMarket
An extensive “Shadow Market” in South Florida drives the economic vitality of the region. The shadow customer
comes from all over the world and are a significant portion of new home buyers, often paying all cash. These
temporary seasonal residents do not show up in traditional demographic numbers and are not counted during
the Census since they are here for only a few weeks or a few months during the year. The Shadow Market of
international residents, primarily from Latin America, remains the main factor behind the region’s strong housing
market, elevated retail sales growth and sharp up-tick in retailer expansion. The graph below illustrates how the
shadow markets support stability in the retail sector despite local macro economic conditions.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
$250.00
$200.00
$150.00
$100.00
$50.00
$0
$50,000.00
$45,000.00
$40,000.00
$35,000.00
$30,000.00
$25,000.00
$20,000.00
$15,000.00
$10,000.00
$5,000.00
$0
Retail Sales
Household Income
RETAIL SALES IN BILLIONS V.S. HOUSEHOLD INCOME:
On average,
foreign buyers
spend more
than double
on residential
properties in
Miami (62%
more).
NATIONALITY OF FOREIGN HOME BUYERS IN MIAMI-DADE
0%
5%
10%
15%
20%
Venezuela
Brazil
Argentina
Colombia
Canada
Mexico
Italy
Unknown
Peru
Dominican Republic
China
France
Other
Source: 2016 Profile of International Home Byers of Miami (NAR)
Source: Moody’s Analytics, 2017
WHY IS MIAMI UNIQUE