With the real estate boom in Miami, many look at it from a sales perspective, although the rental market in the Magic City is soaring just as high, seeing record prices.
Redfin, a leading technology-driven real estate brokerage has just released their new rental market tracker, exploring some of the cities with the biggest rent increases and other exciting rental trends. The tracker explained that rent across the United States had officially risen a record-breaking 15% in January of 2022.
With the national averaging rising, there is no doubt that Florida, in specific Miami, is seeing similar trends.
“Moving right now is expensive, whether you’re renting or buying,” said Redfin Chief Economist Daryl Fairweather. “One of the only ways to avoid high housing costs is to move somewhere cheaper, but the list of places that are truly inexpensive is shrinking. Rising mortgage rates are squeezing more Americans out of the for-sale market, which will likely put increasing pressure on rents in the coming months.”
The tracker explored that Miami is listed as the 10th metro area to have experienced the biggest influx in rent prices, revealing that Miami rent prices are up 31% year-over-year.
The data further explained that the average rental price in Miami is $2,973 per month, which played hand and hand with the average monthly mortgage payment. Buyers who are putting 5% down on their payments are seeing an average mortgage rate of $1,852, which is a 29.2% increase year-over-year. Utilizing this data, Redfin unveiled that the difference between Miami’s year-over-year change in mortgage rates and monthly rental payments was down by -2 points.
All of this can be compared to the national average of rental rates which currently stands at $1,891 a month, and a 10 point difference between national mortgage rates and monthly rental payments.
Miami sits alongside other Florida metropolitan cities with the fastest-rising rent including Tampa, Fort Lauderdale and West Palm Beach. To no surprise, four of the 10 cities on this list are in Florida.
Other areas seeing a rise in rent prices year-over-year include Portland at 39%, Austin at 35%, Newark at 33%, Nassau County at 33%, New York at 33% and New Brunswick at 33%.
With data like this, there is no doubt that Miami is one of the most sought-after cities in the U.S. right now. With more individuals moving to the city monthly, these record-setting prices are pulling in new tenants and buyers.
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