This year definitely is one to remember. Nationwide, Miami had the fastest growth in rent over the past 2 years, reaching its highest level ever in February 2022 with +55%. Our wonderful city is now the least affordable among the 50 biggest cities in the United States! The most surprising is that even though rent continues to skyrocket, newcomers still arrive every day.
Meanwhile, the median rent around the country is $1,792, which is 17% up from last year.
Double digits percentage for the seventh-straight month of the price increase. Insane!
In this unbelievable price battle, some cities are still standing out. Indeed, Cleveland, Minneapolis or Detroit are only up to 6% in rent prices. Easily explainable by the location of these cities, well known to be cold. On the contrary, The Sun Belt continues to attract Americans and foreigners. As a matter of fact, the attractive lifestyle the Southern States provides combining lovely weather and “affordable” housing does not weaken. In fact, Arizona, Texas, and California are witnessing the same type of increase in price as Florida.
How much rent can one afford?
In general, the rent should never overcome 30% of the monthly income in order to have financial stability. That’s on paper, nevertheless, in reality, rent is taking a bigger share of income. Especially since the pandemic, inbound migration made Miami’s median reach $2,929.
But if you’re looking for a more affordable location, there are some remaining cities where rent is lower: Oklahoma City, Denver, DC, and St. Louis.
Although you need to be very smart when thinking about renting, some professionals say that buying a starter home is sometimes cheaper than renting. At least in Miami.