South Florida by the numbers: Record rents go through the roof (part 2)
“South Florida by the numbers” is a web feature that catalogs the most notable, quirky and surprising real estate statistics.
When we reviewed the explosive rise in Miami rental prices in August, we were hoping the market might find a steady supply and demand balance. But that just hasn’t been the case, to say the least. By all measures, reports, and analysts, rents in the area continue to skyrocket with no end in sight. While these trends represent huge wins for local landlords, investors, and developers, they are economically crushing for wage-earners, first time-buyers, and blue-collar workers. Local leaders are doing what they can to soften the blow for renters, but this affordability gap looks like a genuine challenge the region will face for years to come. We examine it once again in this edition of “South Florida by the numbers.”
According to Realtor.com, the percentage that home rents in the Miami metro area climbed, year-over-year, as of February — the largest annual spike for any U.S. city, making Miami the least affordable region in the country. [MiamiHerald]
As of December, the average rent in Miami, according to a Redfin report. (The national average was $1,877.) [SouthFloridaAgentMagazine]
Number of South Florida municipalities with smaller populations than Miami that also had rent increases of more than 30 percent in the past year, demonstrating the “ripple effect” of extraordinary demand. Edward “Ned” Murray, associate director of the Jose M. Pérez Metropolitan Center at Florida International University points out, “Miami-Dade’s labor force will continue to shrink over the next year and beyond, as annual wage gains of 3 percent to 4 percent will be offset by 30 percent-plus increases in rents. This is completely unsustainable and will impact businesses, as well, that have already been struggling with a dwindling labor force.” [SouthFloridaBusinessJournal]
Number of days’ notice Miami-Dade County residential landlords now must provide renters of any increases of 5 percent or more, after an ordinance was recently passed (unanimously) by the county commission. The ordinance applies to tenants at the end of their leases and in month-to-month leases, and extends the required notice time for eviction to 60 days from 30 days for month-to-month tenancies. However, it can only be enforced in court, as a legal defense to eviction. [TheRealDeal]
Average price-per-square-foot rental costs for Miami-Dade office space in the fourth quarter of 2021, up from $41.48 the previous year. This sharp increase comes in the face of continued double-digit vacancy rates in the market. [TheRealDeal]
This column is produced by the Master Brokers Forum, a network of South Florida’s elite real estate professionals where membership is by invitation only and based on outstanding production, as well as ethical and professional behavior.