Miami Rental Market Forecast for 2022?

Question

Any speculation as to the the RE prices and rental market in Miami for 2022. I've been hearing that the purchase prices are high right now, July 2021. The expectation is that with forbearance ending and mortgage rates rising, that prices are due to drop substantially in 2022. However, I've also been hearing that it may become a landlord's market and you might want to grab some quality properties now.

Anyone care to add some sage speculation? Appreciated, Brian

Ashraf Spahi · Answer

RE Sale prices have started to level out a bit. We're seeing buyers being more price-conscious even with rates still relatively low. Homes are sitting on the market a little bit longer than in previous months, with some listing price cuts and some selling below list price. There are a few exceptions though, for homes that have unique features, homes that look like they were renovated with quality materials and tasteful design are being bid up. If it's a cookie-cutter home then what I previously stated applies. For the rental market, we're seeing a huge influx. As buyers are priced out of the market they are having to continue to rent. Some landlords are not renewing leases because they are trying to sell their properties, or have sold their properties and need the tenants out. This has forced a huge amount of people to be bidding on the few rentals available. That coupled with the influx of out-of-state people moving to Miami and trying to rent as well has fueled low inventory and higher rental prices. A majority of apartment rental communities are also at 99% capacity, their highest records compared to 1 year ago.

In the last 2 months, I've been receiving 3x more calls for my rental listings than my sale listings.

Malgorzata Sadowska · Answer

Rental market has been keeping pace with sales - up tremendously - 10-20% depending on what & where. Bidding wars (especially on SFR rentals) because many landlords are selling and the ones, who buy, are charging higher rents. If anything indeed changes, it usually takes 6-9 months for the prices to reflect.

Sebastian Giraldo · Answer

"1bed 1 bath units are hot commodities right now" I chuckled as a leasing community agent told me the next unit will be vacant in January. It's true as there is a shortage of rental inventory. This is acting as an additional upward pressure on income producing properties. While buyers are becoming more and more price conscious and land becoming increasingly more valuable. Unless interest rates rise significantly I firmly believe property values will continue to appreciate since properties are a steal for buyers coming from NY.

As for rental prices they may cool down nonetheless I think they will continue to rise as they were from 2017- 2019 which I was able to raise rent for an avg of $200 per unit depending on the area. It just so happens that the same raise occurred this year from Jan-May.

Miami Rental Market Forecast for 2022?

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