Miami-Dade housing rents dip a hair
As the vaccine rollout allows the economy to slowly reopen and replenish jobs, the need for multifamily rental spaces has increased throughout Miami-Dade County.
So far in 2021, the average effective rent year-over-year is down 0.2 % in Miami-Dade Metro Area, compared to a 2.7% decrease in 2020, according to Marcus Millichap’s 2021 first-quarter multifamily market report. The higher vacancy will burden rent in 2021, though the downward pressure will be partially offset by newly built luxury apartments charging premium rates, the firm says. The firm expects the market’s average effective rent to decline marginally to $1,665 per month.
“Throughout our properties, we have seen a 3% increase shift in rent growth,” said Johnny De La Espriella, RKW Residential’s senior vice president. “The goal is to get back to pre-covid market rates, which I really do see happening this year.”
Other things that are factoring into the rise of rental rates include reduction or elimination of concessions and higher price lease renewals reflecting this year’s market rates that were reduced last year due to the pandemic, Mr. De La Espriella said.
“We are seeing renters in transition in their lives, either waiting to buy or just sold their homes and wanting to rent for a few years,” he said. “We still have a lot of renters by choice for convenience of location and a lot of out-of-towners are also relocating from across the country and just wanting to rent.”
In the past six months, 125 homes were rented in Coral Gables with a $5,504 average rent rate, in Doral 109 homes were rented out at a $4,075 average rental rate, while in Coconut Grove only 24 houses were leased averaging around $5,854, said Andres Asion, founder of the Miami Real Estate Group and Master Brokers Forum board member.
Escaping the strict lockdowns of other states like New York and California, a new wave of people are coming down to South Florida, which has been relatively open throughout the pandemic compared to other cities, Mr. Asion said.
“Out-of-towners are coming in and renting for six months to test Miami out, enjoy our weather and falling in love with our the city,” he said, “Those renters are now turning into buyers.”