Apartment rents have started to fall in some South Florida cities.
In June, Coral Gables saw the biggest decline in asking rents for one-bedroom apartments, according to Zumper, falling 10.5 percent year-over-year to $1,700 a month. Miami Beach experienced the second largest drop at 5.9 percent, to $1,600 a month. Deerfield Beach and Hollywood rents fell by 5.9 percent, each, to $1,350 a month.
And in Key West, the most expensive market in South Florida, the average rent for a one-bedroom decreased by 4 percent annually in June to $1,930 a month, according to Zumper.
In Homestead, South Florida’s most affordable city, rents experienced the biggest bump in June, up 11 percent to $1,040 a month. The increase in less expensive markets like Homestead could be due to a growing demand for more affordable housing.
Property owners have been bracing for the financial impact of coronavirus, as millions of Americans have filed for unemployment – more than two million in Florida – since the pandemic began in March. The stay-at-home orders through May, in some markets, resulted in fewer people signing new leases and moving.
Across the country, about 80 percent of apartment tenants paid rent in June, a slight increase from rent collections during the same period last month, according to the National Multifamily Housing Council, which tracks 11.5 million market-rate rental apartments.
Some landlords are working with their tenants by waiving late fees, discounting or in some cases waiving rent or offering other concessions.