South Florida cities grapple with skyrocketing rent increases
South Florida has experienced a significant surge in rental rates, causing challenges for tenants seeking affordable accommodation. An evaluation by Zumper, an online apartment rental service, reveals double-digit rental growth in no less than 10 South Florida cities in May compared to the previous year.
The cities experiencing the highest surge in rents are:
- Hollywood: Rent prices ascended by 29.7% in comparison to the preceding year.
- Hialeah: Experienced a rent increment of 23.5%.
- Key West: Observed a rise of 22.3% in rent prices.
- Coral Gables: Rent surged by 20.7%.
- Lake Worth: Reported an 18% increase in rent.
- North Miami Beach: Experienced a rent rise of 16.1%.
- Miami Gardens: Rents escalated by 15%.
- Sunrise: Noticed a 14.9% rent growth.
- Deerfield Beach: Rent rates increased by 14.4%.
- Lauderhill: Experienced a 13.8% rent surge.
Max Ducharme, managing partner of Basis Alternative Investments at Boca Raton-based Basis Industrial, explains this spike in rent growth is partly due to individuals relocating from cities in search of economical housing options. Furthermore, the advent of new developments in regions like Hollywood and Hialeah has played a significant role.
“A lot of new properties have been delivered,” Ducharme observed. “It seems like every day you are seeing a new development in Hialeah. And a lot of these new buildings have higher asking rents.”
At present, the median rent in Hollywood stands at roughly $2,010, while in Hialeah, it is around $1,890.
The affordability element is another contributing factor to the rent growth witnessed in these areas. Crystal Chen, a writer with Zumper, noted, “Many people are getting priced out of the more expensive parts of the Miami metro area and have to move to more affordable cities.”
Despite the rising rents, Hialeah and Hollywood remain relatively cheaper than Miami, allowing the average tenant to save approximately $1,000 per month. The median rental price in Miami is currently about $2,900 per month.
Ducharme also highlighted that for numerous South Florida inhabitants, their earnings have not risen in tandem with the rent increases. He added, “Let’s say you have someone making $75,000 a year. With rents, they’ve gone from paying maybe 30% of their income to about 50% of their income. They need to move somewhere else because of that.”
