It has become increasingly clear that Miami-Dade County residents are having a hard time finding a rental. Amid the population influx, apartment hunters are facing stiff competition. A new RentCafe report found that Miami-Dade was the “most competitive” apartment market of 2022, with an average of 32 renters vying for each available unit, far above the national average of 14 renters competing for an apartment. This means that finding a rental in Miami-Dade is not just tough, but the toughest market in the U.S.
In addition to the high level of competition, A new RentCafe report found Miami-Dade was the “most competitive” apartment market of 2022 with apartments in Miami-Dade taking an average of 25 days to be leased, compared with an average of 32 days nationwide. This further emphasizes the high demand for rental units in the area.
To add to the high demand, tenants who have already secured an apartment in Miami-Dade are choosing to stay, with the lease renewal rate hitting 75 percent. Although the county experienced a record 2.8 percent increase in the supply of apartments in the first part of 2022, it still wasn’t enough to meet the demand for rental units.
The findings in the RentCafe report are the most recent highlighting Miami-Dade’s multifamily market boom that started in late 2020. The pandemic-led migration and the lack of a state income tax, along with South Florida’s growing base of tech and financial firms, have made it a prime choice among millennials and Gen Zers, according to the report.
This high demand for rental units in Miami-Dade has been good news for apartment developers and investors who have seized on the population growth to plan new multifamily projects. However, at the same time, the skyrocketing rents resulting from the high demand have deepened an existing affordability crisis. This year, developers are on tap to complete more than 22,500 market-rate units across South Florida, which would be a record in annual deliveries for at least the past decade, according to a Berkadia market outlook report.
Even more projects are planned, such as the Pérez family’s Related Group scoring 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 a 58 percent median rent hike over two years, and Miami was deemed the most rent-burdened city in the U.S. However, since the summer, rate increases have significantly slowed. Realtor.com shows that rents rose 6.3 percent in November, year-over-year, with a median monthly rent of $2,638.
Developers are also targeting renters priced out of market-rate units, with plans for affordable and workforce housing projects. For example, in North Miami, Coral Rock Development Group is planning the 10-story Kayla at Library Place on the city-owned site of the Greater North Miami Chamber of Commerce at 13100 West Dixie Highway. Out of 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 area median income. The Department of Housing and Urban Development pegs Miami-Dade County’s area median income at $68,300.
Overall, the findings in the RentCafe report show that finding a rental in Miami-Dade County is a challenging task, due to high competition and a high demand for rental units. Despite a record increase in the supply of apartments, the demand for rentals still outstrips the