Overall, according to local real estate experts, the Miami residential rental market is very hot and housing is still in high demand.
Carlos Villanueva, district sales manager and broker for The Keys Company, said inventory levels continue to remain low because Miami-Dade is a beneficiary of both domestic and foreign immigration.
“We have our own little kind of micro-economy here in South Florida,” he said, “as a result of the demand to be the Wall Street of the South, Chicago, Goldman Sachs and many, many other bastions are coming out here. Important financial companies.
Miami Mayor Francis Suarez’s initiative to make the city the fintech capital of the world has also contributed to the high demand for home rentals, Mr. Villanueva said.
“We have high absorption of assets even with low inventory, and so you end up with high prices,” he said. “What we’re seeing is that the absorption or vacancy rates across the board are all quite low, all under 3% and 6%, roughly.”
Citing areas such as Miami Beach, Coral Gables and Doral, Mr. Villanueva explained that in areas that are clustered, which means living, working and playing in close proximity, the value of those activities is higher.
“In the near future, inventory is going to stay low,” he said. “There are many people who have decided to stay in their homes longer because of refinancing during the pandemic boom.”
There are currently 25,459 homes listed as rentals in Miami-Dade County. The median rental rate for a one-bedroom home is $2,373, a two-bedroom is $2,962, and three-bedrooms are listed for nearly $3,700, according to the Miami Association of Realtors’ most up-to-date statistics data on the Miami rental market report for.
In November, there were 39,238 active rental home listings in Miami. According to the association’s Miami Rental Market Data Report, the median rent for a one-bedroom was $2,101, a two-bedroom $2,606 and a three-bedroom about $3,235.
Even though inventory will remain low, homes with higher prices on the market may remain listed for a little longer because renters, as well as buyers, are resisting when it comes to pricing something they are not willing to pay, Mr. Villanueva said.
“Miami has grown into one of the great metropolitan cities not only in the United States, but in the world,” he said. “But, if you live in London, New York City, San Francisco, or L.A., you are definitely paying a higher cost of living. It’s a natural part of growing up in a city.