Where did South Florida apartment rents rise most? We’ve got results of new survey
South Florida’s home renters faced double-digit annual increases in 11 of the largest cities, some once known for cheap apartments.
The rent increases ranged from less than 1% to nearly 30% among the 28 largest cities in Miami, Broward and Palm Beach counties in April compared to a year ago, according to a fresh residential rental report by Zumper, a national apartment listing company.
The report tallied the median rents and annual percent changes for the region’s 28 biggest cities, based on data from the Multiple Listing Service, Zumper’s and other real estate listings.
Hialeah posted the largest annual rent increase for one-bedroom apartments — a 28.8% hike — followed by the price jumps of 24.2% in Hollywood and 17.2% increases in Lake Worth and Sunrise.
Hialeah and Hollywood, in particular, have attracted well-known local developers determined to expand the identities of these communities. Amid Hialeah’s growing art scene, Miami developer Avra Jain stepped in and opened Factory Town, converting an abandoned factory and warehouses into a venue for live music and shows. Residential builders like Related Group and MG Developer are also betting big on the city, moving ahead with multiple rental projects.
A similar transformation can be seen in Hollywood in South Broward. Once a sleepy beach town, the city’s Hollywood Beach Broadwalk and surrounding North Young Circle community have attracted families and young couples. Developers are building new condominiums and apartment rental buildings, including affordable housing complexes.
While Hialeah and Hollywood have the fastest rising rents, those cities aren’t the region’s most expensive for apartment leases. Sunny Isles Beach, where the median monthly rent for a one-bedroom apartment is $2,900, was the priciest city in the survey. Conversely, Miami Gardens was the least expensive city with median apartment rent of $1,520. In Miami, the largest city in South Florida, the median rent is $2,840 a month. Comparatively, the median price in Florida last month was $1,685.
The soaring rents in the 11 cities that posted double-digit annual hikes represent the growing demand for neighborhoods that historically have been home to many middle-class working people and families. The influx of wealthy transplants from across the country has boosted rents in most parts of South Florida the past couple of years during the coronavirus pandemic.
North Miami Beach, Pompano Beach and Sunny Isles Beach reported annual rent increases of at least 16%, while apartment prices jumped 8% in Miami.
“A lot of people are getting priced out and they’re looking for more affordability,” said Crystal Chen, a Zumper data analyst.
Four of the region’s largest cities included in the Zumper report — Aventura, Doral, North Miami and Dania Beach —experienced annual rent declines, ranging from 0.4% to 6.1%.
Looking ahead, South Florida apartment rents will keep climbing the rest of this year and into 2024. Fewer cities are expected to see double-digit rent hikes, since the cost of living already has squeezed many natives and long-time residents, said Jack McCabe, owner of real estate and economic research firm Jack McCabe Expert Services in Deerfield Beach.
“We’re at that pinnacle of pricing,” McCabe said. “Incomes are nowhere near increasing [as much as rents.] The cost of living is taking a big bite out of their incomes and taking a bite out of South Florida. Paradise is only paradise if you can afford it.”
Here are the cities with the biggest annual rent increases through April for one-bedroom apartments in South Florida, according to the Zumper report:
▪ Hialeah: 28.8%; median rent $1,880
▪ Hollywood: 24.2%; median rent $1,900
▪ Lake Worth: 17.2%; median rent $1,700
▪ Sunrise: 17.2%; median rent $1,700
▪ North Miami Beach: 16.7%; median rent $1,750
▪ Pompano Beach: 16.1%; median rent $1,800
