In the last year, rent prices have been skyrocketing in the city of Miami. A combination of big conglomerates coming into the city as well as a growing demand in condos has been driving local residents to Broward county.
Lindsey Brown, a local realtor, believes the rise in prices won’t stop anytime soon.
“I’m not sure we’re gonna see prices go down anytime soon,” Brown said, “there’s a lot of demand and not a lot of supply, and people still continue to move here.”
Initially, two-bedroom apartments in the city averaged $2,250 in rent back in 2015. Nowadays the same type of apartment averages $3,500.
“It’s caused a lot of people to move out of their condos or apartments because they can’t afford to live there anymore,” Brown said.
With this, Brown says many people are seeking alternatives to the Miami housing market, opting for places like Fort Lauderdale, Broward and Homestead instead. Here, prices are slightly more affordable than that of Miami.
Miami’s real estate market has seen one of the largest increases in rent in the country, the arrival of companies like Amazon and Microsoft to the city increased the demand for housing in Miami.
“There have been some really big companies like Microsoft, Amazon, that are moving to Miami and bringing their employees with them,” Brown said, “which has caused a shortage in supply as far as housing goes and new people looking to find housing in the market.”
Brown argues that first-time renters have it worse than most people as many find themselves having to settle for more “undesirable” living spaces, or having roommates in order to afford housing in the city.
However, the construction of new developments could ease up on the rent prices and help stabilize the real estate market.
“I think adding new supply will definitely help the market to stabilize,” Brown said.
As of April 9, Miami-Dade County is in a “state of emergency” when it comes to rent and is currently one of the most unaffordable cities in the U.S. Currently, there are rental assistance programs starting up throughout Miami Dade county. This is available to residents who meet the requirement of making below 80% of the county’s median income.
“New buildings around Miami have rent caps and are affordable for the average middle or lower class families that live here,” said Brown. “This should help a little bit but I don’t really see a downturn in rents, just hopefully some stabilization”
As affordable housing is incredibly scarce in Miami, new alternatives are being built to keep up with the demand.
For instance, Carnival Cruises have decommissioned several cruise ships to be turned into affordable housing in Miami. The project is currently in the development stages, but is one of the only active attempts at creating more affordable housing in the city.
With the migration of new investment in the city, the problem of gentrification gets accentuated even further for local residents.
“This issue it’s only going to expand,” Brown said, “as long as the demand stays so high here, because people are going to have to move into neighborhoods they can afford and which is going to mean gentrifying new areas and probably pushing those people into other neighborhoods.”
If the current rent trends persist, rent prices are forecasted to continue rising in price all the way into the beginning of 2023.