By Mike S Payton, Contributing Reporter
MIAMI BEACH, FLORIDA – According to an August 2019 report by Apartment List, Miami rents declined moderately over the past month. Miami rents have declined 0.3 percent over the past month, but are up slightly by 1.3 percent in comparison to the same time last year.
Currently, median rents in Miami stand at $1,083 for a one-bedroom apartment and $1,373 for a two-bedroom, according to the report. This is the second straight month that the city has seen rent decreases after an increase in June.
However Miami’s year-over-year rent growth lags the Florida state average of 1.4 percent, as well as the national average of 1.5 percent. The supply and demand balance should help reduce rental rates, or at least keep them from outpacing the national average.
A report by RENTCafé estimates 6,989 new apartment units to come online by the end of the year in Miami. This is more than double compared to last year’s delivery of 3,148 apartments.
Author of a recent report on new apartment construction, Florentina Sarac shared, “Miami developers are keeping busy this year, with almost 7,000 new apartments expected to be delivered by the end of 2019, more than any other city in the country.”
“It’s also considerably ahead of other cities in Miami metro like Fort Lauderdale, which is projected to build only around 1,300 new units. The influx of new residents moving to the area is just one of the possible reasons for this construction craze.”
However throughout the past year, rent increases have been occurring not just in the city of Miami, but across the entire metro. Of the largest ten cities that Apartment List has data for in the Miami metro, eight of them have seen prices rise.
According to the report, Miami Beach has the least expensive rents in the Miami metro, with a two-bedroom median of $1,294; additionally, the city has seen rent growth of 0.6 percent over the past month, the fastest in the metro.
Realtor Bianca O’Donnell of Keller Williams Miami Beach explained that, “These prices are not our median South Beach rental prices. The lowest priced two-bedrooms available in Miami Beach $1,750 with the median price being about $2K.”
In terms of advise for those looking to rent, she adds, “South Beach rental prices are typically lower during the summer months. Currently there is an abundance of rental options in North, Mid and South Beach.”
Continuing, “We will see rental rates increase and inventory decrease beginning in October when our peak tourist season resumes. South Beach is the area that is most impacted during October through May.”
Across the Miami metro region in the past year, Miami Gardens has seen the biggest rent drop, with a decline of 0.9 percent. Median two-bedrooms there cost $1,451, while one-bedrooms go for $1,144.
Pembroke Pines has the most expensive rents of the largest cities in the Miami metro, with a two-bedroom median of $2,427; rents were up 0.2 percent over the past month and 1.0 percent over the past year.
As rents have increased slightly in Miami, a few large cities nationwide have also seen rents grow modestly. Compared to most large cities across the country, Miami is less affordable for renters. For example, Memphis has a median 2BR rent of $832, where Miami is more than one-and-a-half times that price.
While Miami’s rents rose slightly over the past year, many cities nationwide also saw increases, including Austin (+3.2 percent), New York (+1.7 percent), and DC (+1.5 percent).