South Florida’s Rental Market on the Decline
After years of price hikes, it appears South Florida’s rental market is on the decline according to CBS Miami. Due to a number of issues, including thousands of new rentals opening in Downtown Miami, the market is dropping. It means good deals for renters, tough times for landlords – and it’s a bizarre turn of events for Miami Beach. Below are a list of the Miami rental rates over the past five years and the numbers tell the story.
Downtown Miami Rents:
2012 – $2,255
2013 – $2,371
2014 – $2,481
2015 – $2,582
2016 – $2,590
Every year the average rent has risen roughly a hundred dollars. But in late 2016, the rental market suddenly became flat.
“If I were to bet, I would bet that prices are on the way down. I would bet the tenants and buyers are going to have the upper hand probably for the next two or three years,” said real estate broker Peter Zalewski. Zalewski believes downtown’s rental market is in for a major correction. He points to a flooded condo market, which has roughly 8,000 rentals being constructed right now. Why so many rentals? During the recession, banks wouldn’t finance condos. Rentals on the other hand were a gold mine. Developers went where the financing was.
Meanwhile, Miami Beach, home to some of the most expensive real estate in Florida, has become cheaper to rent than hipper Downtown Miami. Renters on the beach are paying roughly $500 less a month. With this rental market changing, it’s important for renters to consider using a real estate agent to haggle price. Typically you only see what landlords are asking for in rent. Real estate agents have access to data that shows what renters are actually paying. It can knock your rent down by as much as $6,000 a year!
Not quite ready to make the move to Miami? If you’re seeking an affordable rental in Tampa Bay, Florida or if you’re ready to make the move and buy a home in Tampa Bay, please contact Simply Property Management – Paielli Realty, Inc. today. We provide a wide array of specialized property services in Tampa Bay to fit your real estate needs, and can help you manage your Tampa Bay property or find the home of your dreams. We keep it simple, not complex.
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