With the projection of Resorts World Miami, Miami's SkyRise and the Wordcenter, Miami is soon becoming a "Global City". With this expansion comes higher home prices and increased rent. According to local experts, Miami may not have enough inventory to cover the the upcoming demand.
Thinks $3100 for a small two bedroom apartment is too much? You may soon be paying upwards of $3.50 a foot just for rent in downtown Miami.
Local experts project that rents will hit $3.25 within the next six months as they are already $2.25 to $2.50 per square foot. This sticker shock might be a steeper rise from the current levels but the median price for a downtown Miami rental is a $2650 based on apartments of 1100 ft.² and up. With new expansions and more building happening in the downtown area, real estate will come at a steep price and this goes for rents and parking as well. They will continue to go up as the economy recovers according to certain real estate condo division groups and developers.
In addition, the influx of people moving to South Florida in addition to millennial's refusing to live in suburbs, will create a high rental demand, potentially beyond supply. Because of this dynamic, rental properties will naturally increase and investors may find themselves scrambling to even find properties to invest in.
Over the last real estate boom in the Miami area, developers and architects have built 84 new condo towers and more than 22,000 units. However, the income of many Miami residents also must rise considerably to afford these rents and currently a rent of $3000 per month is considered unaffordable for household making less than $120,000 per year. Some of Miami's most desirable neighborhoods have a current median income of just $53,000-$78,000 respectively.
White-collar employment and income growth is happening in South Florida but perhaps not as fast as it will need to be to maintain this type of real estate push. The target demographic will have to be more specific to those working in the downtown area, but with the added jobs and construction projected over the next 2 to 3 years, the need for more downtown residencies will also increase. [Source]