In November, a significant drop in rental prices was recorded in several cities in the Miami area, challenging the upward trend that had continued during the pandemic.
The most recent data from Miami Metro’s monthly report, produced by rental listings company Zumper, reveals that residential rents decreased between 1% and 15% in several municipalities in Miami-Dade, Broward and Palm Beach counties.
During this comparison period between November 2023 and November 2022, notable variations in rental prices were observed for one- and two-bedroom units. Among the cities with the largest declines are Sunny Isles Beach, Plantation and Dania Beach for one-bedroom homes, as well as Aventura, North Miami and Fort Lauderdale for two-bedroom homes.
Greater offer
Zumper data analyst Crystal Chen attributes this trend to migration and an increased supply of rental housing, characterizing the current market as renter-friendly. Migration, both of wealthy people who moved during the pandemic and of executives and remote workers returning to their hometowns, has contributed to a surplus of rental properties.
Rents will continue to fall in Miami
Generally speaking, rents are expected to continue to decline or remain stable through the first half of next year in most South Florida cities.
But despite this apparent good news, the reality is that rents remain unaffordable for the majority of the population in South Florida, especially in areas that experienced the largest price reductions.
Although prices have dropped considerably in places like Sunny Isles Beach, where the median rent for a one-bedroom residence is $2,500 a month, this remains unaffordable for many residents whose incomes are significantly lower.
Work to pay the rent
The 2023 Housing Needs Assessment report from the University of Florida and Miami Homes for All reveals that more than half of renter households in Miami-Dade County earn less than $50,000 annually.
This means that many renters are at risk of being cost-burdened, spending more than a third of their income on rent. In other words, many leave practically all their money on rent.
Although demand for housing has decreased, it is still higher than pre-pandemic levels, according to Eli Beracha, a real estate professor at Florida International University (FIU).
The fluctuation in rental prices appears to reflect regular population movements, with people returning to their home states and others continuing to arrive from different regions of the country and abroad. This constant flow is helping to keep prices above pre-2019 levels.
