Mayor Daniella Levine Cava has officially declared a housing crisis in Miami-Dade County. While much of the United States is also experiencing a rise in housing and rental prices, Miami-Dade has seen prices skyrocket, particularly because many people chose to relocate to the sunshine state following the COVID-19 pandemic.
RealtyHop ranked Miami as the least affordable market in the nation based on the median income here. RealtyHop determined that households would need to contribute approximately 78% of their income towards homeownership costs. Second and third ranked are New York City and Los Angeles, respectively.
Miami influencer Jocelyn Castillo saw the rent for her downtown Miami apartment double. “I grew up in Hialeah. Moving to Edgewater felt like a big achievement for me,” says Castillo in an interview with Narcity Miami, “and seeing that so many of my friends are either moving out or canceled their plans to live here or own here. sucks! It’s making the Miami community feel like living in Miami is unattainable.”
Housing prices in Miami have been rising for a while. However, between 2021 and 2022 the increase has been astronomical, The Real Deal estimating it to be a 58% growth. Apartment List reports that 54% of apartments in Miami cost over $3,000 per month and 0% cost less than $1,000 per month.
The standard rule for responsible spending is that renters should not spend over 30% of their income on rent. This means that to be able to afford the average-priced one bedroom Miami apartment your income should be at least $82,200 or higher. As of 2020, the median individual income in Miami is $23,425.
In response to the housing crisis, Mayor Daniella Levine Cava is hoping to distribute $41 million in federal funds as rental assistance. As housing prices continue to skyrocket, local Florida government may start to look into issuing rent control orders. As it currently stands, Florida law prohibits local governments from imposing rent-control measures, which The Real Deal states has allowed for the unbridled hikes.
The hikes in housing prices have shown no signs of letting up. Federal Reserve officials report that there may be a housing bubble forming. A housing bubble, as defined by Rocket Mortgage, occurs when real estate demand outpaces supply, causing the average price of properties for sale to rise, often at a high or alarming rate. Florida and other states who are experiencing these alarming jumps in housing are at risk if they can not maintain its current population growth; which has also experienced a spike since the beginning of the Covid-19 pandemic.
The current state of housing prices in Miami is unnerving for many, particularly those who are vulnerable and in potential risk of eviction. If Florida approves the rental assistance to address the housing crisis, the county will be able to cover up to 20% of a rent increase for up to three months, and could cover as much as $3,000 a month for up to a year in back rent, says The Real Deal. Previous assistance funds have been successful in turning around nearly 600 cases in Miami-Dade.