Rents are rising in Miami so much that the city now has among the highest month-to-month percentage increases in the country, according to a new study. Between June and July, rents increased by 5.3% for one-bedroom units — to $1,790 per month from about $1,695, according to Zumper’s July 2021 national rent report.
Miami’s month-to-month growth change for one-bedroom units is the fifth highest of 100 U.S. cities. El Paso topped the list with a 5.6% change, where the median asking price rose from $708 per month in June to $750 per month in July. The Magic City ranked 13th for having the highest month-to-month rent increase for two-bedroom units. The median asking rent is $2,360 per month, up by 4.9% from $2,244 per month in June 2021. Virginia Beach topped the list with a 5.4% increase for rent increases for two-bedroom units, from a median asking rent of $2,233 per month in June to $2,360 per month in July.
“The wave of people is causing rents to drive up, and there’s also a yin yang relationship between the rental and housing market,” said Jeff Andrews, author of the Zumper report. “For much of the country, it’s hard to buy a house right now, because it’s so competitive. As home prices rise, the competition to buy a house rises and that means more people are priced out of the housing market.” For the national report, Zumper studied rent growth and median asking rents for June and July for 100 U.S. cities. It looked only at its own rental listings, which include units in apartment buildings, condominiums and single-family houses. Kim Rodstein, a Realtor® with Keller Williams, said she’s inundated with calls from potential renters from Toronto and New York City, among other places. In July, she rented a 400-square-foot furnished unit in an Art Deco walk-up in Miami Beach for $1,900 per month. “This furnished unit would have rented for $1,400 this time last year,” she said. “Because inventory is so low, this is the problem.” Companies expanding to Miami, bringing their workforce and the trend of working remotely continue to influence the local rental market, Rodstein said.
Renters can expect prices to continue to increase in the months ahead, Rodstein said. “We are not letting up any time soon,” she said. “The inventory is dictating what is happening in the market. The inventory is so low and it is so hard to get property right now.”