Miami Rental Market – June 2020 Update

Restaurants, small businesses and movie theaters aren’t the only things the COVID-19 pandemic brought to an abrupt halt in March.

The residential rental market around the U.S. has taken a massive hit due to the coronavirus outbreak, with millions of people opting to stay in place in their current home or apartment — and interrupting the natural progression of moving to a bigger place or becoming homeowners.

But in Miami-Dade, that stagnancy has opened the door for a slew of out-of-towners looking to rent a market-rate, non-luxury apartment and partake of the South Florida lifestyle, made possible by the growth of working remotely.

The lack of movement has kept rents flat across the U.S. According to the analytics firm CoreLogic, the rent for single-family homes in 20 major metros grew only 2.4 percent year-over-year in April 2020. That’s the lowest increase since November 2010, when the country was still recovering from the recession.

In the Miami-Miami Beach-Kendall area, single-family home rent prices grew 2.1 percent, an increase from the 1.25 percent growth in April 2019, according to CoreLogic. But the region still fell far short of rent growth in 19 other metro markets, such as Phoenix (6.6 percent), Tucson (3.7 percent) and Charlotte (3.4 percent).

The CoreLogic data also show that the single-family rent growth in Miami was fueled primarily by the high-end market (properties with rents 125 percent higher than the regional median of $1,750), where prices have risen steadily since November 2019.

Source – Miami Herald

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