In the last 5 years we have seen a huge increase in Miami’s rental market. A 1 bedroom/1 bath apartment no longer costs $850 per month to rent. Nowadays, you’re looking at $1,200-$1,300 per month for a 1/1 in the suburbs (not including Downtown and the Beaches) … Crazy, right?!
This extreme change has affected the local neighborhood and the people in major ways. The majority of our renters are composed of young millennials and those who are currently unable to qualify for a home loan. Knowing that buying is cheaper than renting, the current state of Miami’s rental market leaves renters at a great disadvantage. Struggling to make ends-meet is just the start of it.
One of the biggest factors that are affecting today’s renters, aside from rental prices, are commute, transportation, and tolls. Since the recent luxury onset of the new buildings in Downtown, Brickell and Midtown, we have seen a shift in where renters are moving further West and South. Making Kendall and eventually Homestead the most favorable and affordable areas to live in, but in turn commute and transportation has become a problem.
Luckily, the city has already begun assessing the problem and have a few things in the works.
Future improvements to look forward to include:
- A coastal tri-rail connecting Miami-Dade, Broward, and Palm Beach counties
- A Baylink connecting Miami and Miami Beach along the MacArthur Causeway
- A prominently walkable Biscayne Boulevard
More locally, the increased cost of living has also affected our restaurants and malls. Have you walked into Outback recently on a Saturday or Sunday afternoon for lunch and seen it oddly empty? Renting has become so expensive that people literally do not have sufficient funds to go out. They’d rather buy more groceries and cook at home. Places like Walmart Superstores and Aldi are prospering more than ever because of their bargain prices!
This may be the current situation, but don’t fret! Real Estate is a constantly changing market. As the transportation will be improving soon and providing more local jobs to the people, our rental market will inevitably balance back down again. Once the cost of renting decreases, everything else will fall back into place and the standard of living in Miami will go back to being affordable for the middle working class.