Miami’s Luxury Rental Market Slowing Down
Historic rental increases couldn’t continue forever. The addition of more units and drop in new residents has weakened demand and dinged rental prices.
MIAMI – After a historic run-up in prices, the luxury rental market in the Miami area is seeing a significant slowdown. Although rents are still generally higher than they were prepandemic, real estate agents say the quick rise in new Miami residents moving in has slowed, more apartments have been built, and fewer people are willing to overpay.
“Two years ago, people needed a roof over their head – you’d have 12 offers and everyone was just trying to find a place,” says Miami real estate agent Christopher Wands of Douglas Elliman. “Those days are kind of over. People will still pay a premium, but it’s fewer and farther between.”
So far in 2023, the median monthly rent for a luxury three-bedroom house in Miami-Dade County is $8,500, down 15% from $10,000 last year, says agent Ana Bozovic of Analytics.Miami.
In September, the median monthly rent for a Miami one-bedroom apartment declined 1.47% to $2,690 from the month before, and 1.96% to $2,500 in Miami Beach, according to listing website Zumper. The median rent for a one-bedroom nationwide, meanwhile, increased 0.1% to $1,511 during the same period.
Agents say the growth rate of the past few years was nearly impossible to sustain.
“You can’t be on a roller coaster forever going up,” said Scott Shuffield of Berkshire Hathaway HomeServices EWM Realty. “We’re normalizing a little bit – as we should.”
Source: Wall Street Journal (10/12/23) Solomont, E.B.
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