Wall Street making a killing of South Florida rents

Investment firms turning distressed properties into rentals -- and jacking up the rates
August 14, 2014 03:00PM

A Miami rental

South Florida renters are lining the pockets of Wall Street investors, who bought up distressed properties during the housing crises and are now leasing them out at top dollar. And rents could go even higher.

“If you look at how rents have gone up steadily, constantly since 2009, it seems like rents could continue to go up,” Peter Zalewski, the principal of CraneSpotters, told Miami Today.

Rents are currently peaking in Greater Miami, with asks east of Interstate 95 in Miami-Dade increasing by 24.3 percent since 2010 to $1.74 per square foot. Meanwhile rents west of I-95 have increased 17.7 percent to $1.33 per square foot, according to CraneSpotters data.

“What we’re seeing is the largest transfer to real estate from Floridians – taxpayers, homeowners and residents – to Wall Street investment firms and foreign investment firms,” Bruce Jacobs, a Miami foreclosure attorney and host of the “Debt Warriors” radio show, said. [Miami Today]Christopher Cameron