The rental market in Miami has always been recognized for having one of the highest rental prices in the U.S. Being ranked #10 out of the 100 metro areas in the country this month, the median rent price in Miami has reduced 2.2% from $1,750 for a one-bedroom/ one-bathroom in May compared to last year when the median cost was $1,790).
Comparing May 2020 on a month-to-month basis, we also see that the median price has dropped by 1.1% since April 2020. This price decrease might’ve been caused by a lessening of the demand. Even if Miami offers a perfect paradise, with a large catalog of dining options, a wide list of activities, beaches, a lively nightlife, and even job and studying opportunities, people nowadays prefer to migrate to rural areas with lower price tags.
The COVID-19 pandemic has created new perspectives and preferences of people all around the world, but one of the most interesting ones is caused by the increasing number of companies switching from onsite to remote working. More employees are now able to work remotely, which has allowed people to have more flexibility and a wide list of options of where to live. As you don’t have to live close to your office, why would you pay more for the rent in metropolitan crowded neighborhoods like Brickell or Downtown if you could go for more spacious properties and affordable prices in the suburbs?
Even if Miami has suffered a decrease in the rent price, it was nothing compared to San Francisco, the most expensive metro area in the U.S., where the price fell 9.2% last month compared to the same period in 2019 and 2.6% month to month.
The projections for Miami rental prices aren’t as positive for landlords, as vacancies are expected to increase, forcing owners to give discounts on the price.
Miami is one of the most expensive cities for renters when it takes wages into account. After the Coronavirus, salaries started to drop and everyone is being more cautious about their expenses. It is known that the living expenses for tenants shouldn’t be higher than 30% of your monthly pre-tax income, and being $5,275 the monthly average salary in Miami, the ideal rent should be $1,582, which is lower than the median rent of $1,750.