Sticker Shock: Landlords Ask $4,000 Monthly Rent In Greater Downtown Miami

A review of 2023 rental statistics shows that Greater Downtown Miami has only about 2.6 months of supply listed for rent at the peak of the South Florida Winter Buying Season.

Greater Downtown Miami is in a landlords market with only about 2.6 months of supply currently listed for rent at the peak of the South Florida Winter Buying Season, according to an analysis of statistics compiled by CondoVulturesRealty.com.

In the 12 months of 2023, renters leased an average of nearly 655 units per month for a total of about 7,860 units between January and December.

Based on the current active listings in the Multiple Listing Service – a database used by Realtors to market condos – the Greater Downtown Miami neighborhood is in a landlords market with a supply of nearly 1,715 units available for rent.

Generally, six months of supply is considered equilibrium for the housing market. Less months indicates a sellers market and more months points to a buyers market from a negotiating perspective.

Greater Downtown Miami has been in a landlords market since the midpoint of the pandemic years when a plethora of work-from-home employees relocated to South Florida from places such as California, Illinois and New York. The influx of transplants to South Florida leased up much of the available rental supply, which increased prices and triggered new development.

Rising property values from strong demand, skyrocketing insurance prices following the Surfside condo collapse disaster and high interest rates from a series of hikes by the Federal Reserve brought the South Florida housing market to a standstill in the second half of 2023.

On the rental front, “For Lease” signs are popping up on street posts and in road medians around South Florida for the first time in a couple of years.

Industry watchers are at odds as to the direction of the South Florida housing market in 2024.

Bullish investors are predicting rental demand will continue to strengthen despite more than 50,000 new units being planned, under construction or recently completed in South Florida.

Bearish investors contend that rental prices are too high and likely to collapse in the months ahead as the new supply comes on the market.

Currently, the median asking price for a rental in Greater Downtown Miami is about $4,000 per month compared to a median lease price of about $3,600 in 2023. Pending leases went under contract at a median asking price of about $3,600 per month.

To read the entire report, please visit Peter Zalewski’s Substack page at: PeterZalewski.substack.com

This information is believed to be accurate and complete but cannot be guaranteed or warranted. For more information, please call 305.865.5859 or visit CondoVulturesRealty.com