SoFla property values flatten despite rent hikes

Miami /
Jan.January 08, 2014 04:30 PM

Although rental prices are through the roof, South Florida landlords said property values have stayed relatively flat. Rising construction and operating expenses have factored into this, but are not due to a growth in commodities costs.

“It’s not necessarily the price of materials that’s going up,” Steve Patterson of Related Development LLC told Daily Business Review. “What is going up is profit taking. All the vendors and contractors that have been suffering for the last five years are finally having the opportunity to take a profit.”

The spike in interest rates has led people to rent instead of buy. But inventory is very hard to find.

“It’s simple economics — supply and demand,” Bill Hahne of Miami Beach-based brokerage Hahne Real Estate said. “The rental supply is half what it was last year. At all price points, whatever category clients are looking for, we as real estate agents just don’t have as much to show them.”

Real estate experts have said appreciation should give way to housing sector stability in the coming year. [Daily Business Review]Mark Maurer


Related Articles

arrow_forward_ios
Black Lion CEO Robert Rivani with SLS Lux Brickell (LinkedIn via Rivani, Facebook via SLS Lux Brickell)
Black Lion buys SLS Lux Brickell retail condo for $14M
Black Lion buys SLS Lux Brickell retail condo for $14M
Jorge Pérez with his longtime Miami mansion (Getty, 1Oak)
Miami’s condo king to sell his Coconut Grove palace after moving to Park Grove
Miami’s condo king to sell his Coconut Grove palace after moving to Park Grove
Related CEO Jorge Pérez, President Jon Paul Pérez and the waterfront property (Related, CBRE)
Mexican firm buys former Related Group downtown Miami HQ for $24M
Mexican firm buys former Related Group downtown Miami HQ for $24M
Jon Paul Pérez and Gil Dezer with Residences by Armani/Casa
Related, Dezer report nearly $1B sellout at Residences by Armani/Casa
Related, Dezer report nearly $1B sellout at Residences by Armani/Casa
Jorge, Jon Paul and Nick Pérez (Photos by Studio Scrivo)
Related Group’s condo kings expand their realm
Related Group’s condo kings expand their realm
Robert Rivani of Black Lion Investment Group and Wynwood Arcade. (LinkedIn, Cushman & Wakefield)
Black Lion doubles down on Miami with purchase of Wynwood Arcade, Amara at Paraiso
Black Lion doubles down on Miami with purchase of Wynwood Arcade, Amara at Paraiso
Daniel Sundheim and 2850 Tigertail Ave (Getty/Patrick McMullan, Related)
Daniel Sundheim’s D1 Capital Partners inks 10-year Miami office lease
Daniel Sundheim’s D1 Capital Partners inks 10-year Miami office lease
Related's Jorge Perez, Metro's Daniel Hughes and Terra's David Martin with Two Park Grove
Commercial brokerage chief buys PH at Two Park Grove for $10M
Commercial brokerage chief buys PH at Two Park Grove for $10M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...