Amid an influx of new high-end apartments in Miami, rent growth is starting to slow down in downtown Miami and South Beach, according to a new report.
The report from Berkadia shows that the average monthly apartment rent in downtown Miami and South Beach rose only 0.8 percent in the second quarter of 2019, year-over-year, to $2,112. That compares to an annual increase of 2.7 percent the previous year.
The slowdown in rent price growth shows that after years of rising prices, rents are starting to stabilize in Miami amid a glut of inventory from new apartments and condos that are being rented out. In West Miami and Doral, monthly rents actually decreased 2.2 percent to $1,850, the report shows.
However, the report indicated that the average occupancy rate for apartments in South Florida remains high, at 96.1 percent.
From June 2018 to June 2019, 4,815 apartments were delivered in South Florida. Since 2014, more than 20,000 Class A apartment units have come to market in Miami, according to a TRD analysis of data from Integra Realty Resources, which creates residential reports for the Miami Downtown Development Authority. In Miami-Dade County, nearly 2,200 leases have been signed on the so-called “shadow rental market” so far this year, up from fewer than 100 shadow rentals in 2014.