Are rents going to increase in Miami in 2017?

Rents in Miami are going to increase exponentially. Miami is the city that has the majority of rentals in all the country. The forecast is that the rate of increase doubles the national average.

Overall in the United States, the rents are going to increase of around 1.7% but in the Miami-Fort Lauderdale area the rents will jump of 3.2%. On average, the monthly amount for a rent in Miami is around $1,885 with an increase of 4.2% from last year.

Let’s study more in depth the situation considering the different areas divided per zip code.

In Fisher Island, the island of the rich and famous, rents will rise of 11.3%. The residents in this area of Miami, are also the ones with the highest income per capita. Here, a monthly rent is around $14,698. The increase will not affect them very much.

In Hialeah, the rents will increase of 6.1% and in Kendall 5.4%. Also in Fort Lauderdale, Miami Gardens and Miami we estimate a jump to 5%. On the opposite hand, Brickell and Edgewater areas next to downtown Miami will not increase more than 0.5%. That’s linked to the surplus of inventory coming into the market.

In the rest of the United States, in particular Seattle and Portland foresee to raise the rent in the next year 7.2% and 6%. In Denver, San Francisco and San Jose are thinking that the rents are going to grow of about 4%.

We have already seen the fast rising of rents on the west coast in the past several years. Miami and Boston were in the top 10 of the fastest growing rental markets. Miami will keep staying on the top 10 but Miami is a lot more affordable compared to the other metropolitan areas. As we mentioned we are at $1,885/month whereas in San Francisco the average rent is around $3,406 and $2,399 in New York.

Overall, except, if you live in Edgewater or Brickell you are going to pay the rent as if you were in New York City with median rents of $2,448 and $2,494. In fact, we have listed a unit for rent at the Brickell east condo for $ 2,990 for 2bed/2bath.

But why the high rent is growing? This is given by the high demand and low supply. We don’t think the trend will continue in 2018 since a lot of preconstruction units will flood the market so the supply will increase while the demand will stay stable.