There’s no doubt that South Florida’s rental market has an affordability problem and thanks to recent data we know that close to a fifth of all homes that were sold in Southern California were bought by real estate investors.

A new wave of real estate investors buying single-family homes to flip them at a higher price or add them to the rental market are contributing to South Florida’s housing affordability crisis, according to a new study by realtor.com.

According to the study, the Miami metro area (comprised of Miami-Dade, Broward and Palm Beach) ranked third on a list of the top 10 cities in the U.S. with the highest percentage of home sales used for investment purposes.

The study shows 17% of homes sold in South Florida during the second quarter of 2019 were bought by investors, up 1.3% over the same period last year.

Investor activity isn’t necessarily the problem, what is the problem though is that many properties that investors purchase in South Florida are converted to Airbnb or short-term rentals and this doesn’t help the housing market at all.

The only way to really help the housing market is by having more long term rentals come to market which has rents that people can afford.

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