Downtown Miami is Getting More Affordable

Miami, FL rentalsAs many developers provide lots of new rental apartments and condos this year, the augmented supply helps keep the rents low. This is according to a report published by Miami’s Downtown Development Authority.

According to Anthony Grazino, “landlords are trying to retain tenants because now tenants have these new options. It is going to be a renter’s market this year.”

This year, developers are looking forward to completing almost 6,350 rental apartments and condo units. For the very first time, almost 80% of these rental apartments and condos are for rentals, mirroring the rapidly cooling condo and apartment market of Miami. Developers already provided over 4.700 units last year.

Condo leasing costs reflect the supplementary rivalry. In the 3rd quarter of year 2016, they dropped to $2,590, down 3.2% compared to the preceding quarter. That is a break after many years of rising leases or rents, up to nineteen percent since year 2012. Brickbel and nearby areas rely on the arrival of young professionals who work in this city and like to benefit from the place’s new bars, restaurants and shopping stores.

However, many Miami residents cannot pay to live downtown even though the place is home to lots of job opportunities. Miami is considered as one of the most luxurious housing markets in the US relative to wages or salaries. Renter households in Miami spend 48% of their salary on housing, the 2nd highest rate in the US.

Rental apartment’s rates are still growing due to the many factors. In the 3rd quarter, the normal rent for 2-bedroom apartment was about $2,320

According to Graziano, “when you are renting in a current building, you are going to be in a good position to barter.”

The statement regard rents in 6 sub-markets of downtown Miami such as Brickell, Edgewater, Midtown, Omni as well as Wywood.

In 2018, developers will finish 3,575 units. According to Graziano, the new rentals will almost double the existing supply in Miami. It is the very first time that downtown Miami will have more rental units built than condominiums, largely this is due to the drop in the market of condo units.

Investors from Latin America grabbed condos in Miami when dollar was weak and rents went up by double-digits yearly. However, a currency setback and the slow rental rates have considerably cooled the fervor. According to Douglas Elliman, lavish condo sales dropped by 25% in the 3rd quarter yearly.

Thus, developers have changed their interest to rentals. They are banking on young professionals being fascinated with the growing urban core of Miami. Lots of buildings provide real time services which are common in condo units only.

In other cities in United States, big leaps in the amount of available apartments result in over supply as well as amazing deals for many renters.  Wall Street Journal commented that landlords in LA, New York City as well as Houston have started providing perks which include free rental for several months and without security deposits.

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