Rent in Miami:
Miami is among the fifth least affordable markets in the whole country when it comes to renting, according to a Miami New Times’ article. The good news is we are up there together with markets like New York and Philadelphia, even higher than San Francisco! How is this good news? It is a good thermometer of the demand. In a market where investors from all over the world are buying properties to park their money with the expectation of covering their expenses and making some money by renting them, it is reassuring to know that rent in Miami is up. As you know, the strength of any market is a function of demand and supply. This is also an indication that there is a rationale behind the thousands of condos under construction. Even when you see a crane in every block and you think “who is going to occupy all these units once they are finished?”, reality is we are still underserved when it comes to availability for rent in Miami. 65% of Miami residents are renting, even when the cost of buying and paying a loan is lower.
When you look at the purchase price per square foot in New York, Philadelphia and San Francisco compared to Miami, Miami is still on the cheap side. This means that you are buying at a much lower price range than these cities while rent values are pretty high. No wonder Latin American buyers are flying to multifamily properties, apartment buildings and other rental properties like bees in a flower field. According to MDDA (Miami Downtown Development Authority) Miami’s population doubled since 2000 and some areas like Brickell have increased 159% in less than 5 years while the Arts and Entertainment District increased its population by 167% during that period. With a steady population increase like this it is easy to understand how developers keep paying higher and higher prices for land even when the cost of construction is increasing by 1% every month. Data shows we still have some road to cover before we can meet the demand for housing.
If you are looking to purchase properties for rent in Miami, contact us right away. We’ll be happy to share with you market intel and good data to support your decision. After 20 years in the real estate market in Miami, we can help you.