The Miami Rental Market
The rental market in Miami continued to grow, although at a cooler pace than before, according to a recent analysis by Miami Realtors. Even with this cooling trend, Miami is still ahead of the national average with regards to rental growth.
Modest Growth in Miami Rents
In May this year, the average rent for a two-bedroom apartment in Miami increased by 1.7%, placing it third in a list of 25 cities in the US, behind Chicago (4.5%) and Boston (2.8%). The fact that Miami still made it into the top three cities despite cooling rent prices is an indication of the growth experienced in other parts of the country.
The Miami Realtors analysis focused heavily on new rental contracts for two-bedroom apartments, revealing that Hialeah saw the highest growth, at 6.7%, followed by Coral Springs (3.8%) and North Miami Beach (2%).
Increased Availability of Rental Units
As the cooler trend continues, more rental units are becoming available in Miami. The current number of properties listed (22,872) is three times higher than those listed in January 2022. This increased supply is adding to the cooler trend and making it a more sustainable environment for renters.
The Impact on Single-Family Homes
For those who own single-family homes in Miami, the rental market may be affecting their decisions. With the median rental price for single-family homes rising by 80% between May 2019 to May 2023, homeowners are choosing to rent, rather than sell, their properties. The sale price of a single-family home is also up by 69% compared to pre-pandemic levels, with an average price of $600,000 in Miami-Dade.
The increase in demand for single-family homes is likely due to the rise in remote work, making it possible for employees to work from a distance, even in cities where the cost of living is lower. This trend is providing renters with more space and versatility.
Reasons for Continued Rental Growth in Miami
Miami’s sustained migration, job creation, and the recovery of tourism and travel, are all driving the ongoing growth in the city’s rental market, according to the Miami Realtors analysis. Despite cooling trends, Miami is still a desirable location, and its rental market continues to reflect that, albeit at a slower pace.
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