Report: Cheaper to buy than rent in Miami-Dade

Income from rental properties also decreasing

TRD MIAMI /
Jul.July 09, 2015 10:30 AM

A new report shows that the time is right for homebuyers in Miami-Dade County, as rental rates have soared in recent years.

The study, conducted by RealtyTrac, compared rental rates and monthly house payments on three-bedroom homes throughout the United States.

For the first half of 2015, rent in Miami-Dade cost nearly half of a household’s median income. Home payments, on the other hand, cost roughly 42 percent, according to the report.

“The window is wide open for renters to take advantage of homeownership in South Florida today,” Mike Pappas, CEO and president of Keyes Company, said in a statement. “Rents have skyrocketed over the past few years and may be peaking, while interest rates are still at historic lows. With the tax savings from interest and real estate tax payments a tenant can own for less than they are currently paying in rent.”

Though there’s a significant gap between the two payments in Miami-Dade, three counties in the United States had disparities that ballooned past 10 percent. Rents in Philadelphia, for instance, cost nearly half the county’s median income. Monthly payments on a home, however, cost only 22 percent. The other two counties are Wayne, Michigan, and Cuyahoga, Ohio.

Despite this, income from buy-to-rent properties has decreased for the first half of this year. The report, again looking at three-bedroom homes, saw that income from buy-to-rent properties yielded smaller returns for more than half of the U.S. markets. — Sean Stewart-Muniz


Related Articles

arrow_forward_ios
Avra Jain and Vagabond Hotel (Credit: Google Maps)

Miami-Dade judge tosses Avra Jain’s $15M lawsuit against former attorneys

Miami-Dade judge tosses Avra Jain’s $15M lawsuit against former attorneys
Miami-Dade cracks down on social distancing at construction sites

Miami-Dade cracks down on social distancing at construction sites

Miami-Dade cracks down on social distancing at construction sites
Mayor, Miami-Dade County, Carlos A. Giménez (Credit: Ryan Holloway/ Armando Rodriguez Miami-Dade County Photographers)

Miami-Dade orders all non-essential businesses closed due to coronavirus

Miami-Dade orders all non-essential businesses closed due to coronavirus
Miami-Dade Permitting and Inspection Center

Coronavirus case shuts down Miami-Dade permitting center until Monday, property appraiser closes office to public

Coronavirus case shuts down Miami-Dade permitting center until Monday, property appraiser closes office to public
Avi Bittan and the site at 152nd Street and 97th Avenue (Credit: Google Maps)

Senior living developer buys dev site in south Miami-Dade

Senior living developer buys dev site in south Miami-Dade
The Eureka Drive site, Deme Mekras, Elliot Shainberg

Garco buys Miami-Dade land for multifamily project

Garco buys Miami-Dade land for multifamily project
233 North Miami Avenue and Jorge Perez

Related Group picks up two lots next to Miami Dade College for $9M

Related Group picks up two lots next to Miami Dade College for $9M
Julio Gimenez wants to build a $298 million steel mill project (Credit: iStock)

Miami-Dade mayor’s son wants to build a $300M steel mill on county-owned land

Miami-Dade mayor’s son wants to build a $300M steel mill on county-owned land
arrow_forward_ios

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

Loading...