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If you were rent-hunting last year, chances are you had a tougher time than renters elsewhere in the US, report shows
By now, it’s clear that Miami-Dade County residents are struggling to find a rental. Amid the influx of populations, apartment hunters face stiff competition.
Turns out the county isn’t just a tough place to find a unit, it’s the toughest market in the US
A new RentCafe report found that Miami-Dade was the “most competitive” apartment market of 2022. An average of 32 renters competed for each available unit, well above the national average of 14 renters competing for an apartment, according to RentCafe, an apartment listing statistics and provider; In Miami-Dade, vacant units took an average of 25 days to lease, compared to a national average of 32 days.
To add to that, tenants who had already secured an apartment in Miami-Dade chose to stay, with the lease renewal rate reaching 75%. Although the county saw a record 2.8 percent increase in apartment supply in the first half of 2022, it was not enough to meet demand, RentCafe found.
The findings are the latest to highlight a boom in Miami-Dade’s multifamily market that began in late 2020. Pandemic immigration and a lack of a state income tax, along with South Florida’s growing base of technology and financial firms have become a top choice among millennials and Gen Zers, according to the report.
It was good news for apartment developers and investors who seized on the population growth to plan new multifamily projects. At the same time, however, rising rents resulting from high demand have deepened the existing affordability crisis.
This year, developers are on pace to complete more than 22,500 market-rate units in South Florida, which would be a record for annual deliveries for at least the past decade, according to a market outlook report by Berkadia.
And even more projects are planned. This month, the Pérez family’s Related Group secured a $164 million construction loan for a 44-story, 506-unit apartment tower at 77 Southeast Fifth Street in Brickell. Also in Brickell, Henry Pino’s Alta Development is planning a 38-story, 320-unit apartment building at 160 and 180 Southwest Ninth Street.
In March, South Florida led the nation with an average rent increase of 58% over two years, and Miami was named the city with the most rent in the U.S.
However, since the summer, rate hikes have slowed significantly. Realtor.com shows rents rose 6.3 percent in November, year over year, with a median monthly rent of $2,638.
Developers are also targeting renters priced from market-rate units, with plans for affordable and workforce housing projects. In North Miami, Coral Rock Development Group is planning the 10-story Kayla at Library Place in the Greater North Miami Chamber of Commerce city-owned area at 13100 West Dixie Highway. Of the 138 total units, 55 will be for households earning 60 percent of the area median income and 83 will be for those earning 100 percent of the AMI. The Department of Housing and Urban Development caps the Miami-Dade County AMI at $68,300.
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