Declining inventory of apartments drives up rents

Written by Abraham Galvan on August 31, 2021


Declining inventory of apartments drives up rents

The multi-family apartment rental market is currently facing a shortage in Miami-Dade, with less than a month of inventory, according to local residential real estate experts.

There is about a month of inventory in rentals, which are all-time lows, according to Christina Pappas, vice president of Keyes Co. Anything less than six months of inventory is an owner’s deal.

“We only have seven-tenths of a month of inventory and if no more listings are added by day 20, we wouldn’t have anything else to rent,” she said. “The average number of days in the apartment rental market has dropped to around 22 days now. “

For multi-family units with less than two bedrooms, the average rental price over the past three months in the Brickell and Coral Gables area was approximately $ 2,400. If priced right, the units will last in the market for up to 11 days, Ms. Pappas said. “Now it’s common to see a property come on the market and move out in one day with multiple offers, on sight,” she added.

“We’re also starting to see what we call aggressive pricing. So, for example, a mid-list might cost $ 2,500, but it would be rented at around $ 1,800. It shows me that homeowners see what’s going on and they see the amount of demand, so they are pricing their property a little bit ambitiously, hoping to get something higher, ”he said. Ms. Pappas said. “What’s interesting now is that the last three months. the median list price was $ 3,900 and the median rent is $ 2,000.

In July, rents rose 10% at several RKW residential properties across Miami-Dade County, said Johnny De La Espriella, RKW senior vice president of operations.

“Our average occupancy was around 95% in a multi-family building, which is considered stabilized and healthy occupancy for properties in Miami,” he said. “Now 97.88% is really more than average, so everything is a lot more comprehensive, and that takes advantage of availability with still high prices, and concessions are practically non-existent or minimal. “

About 55% of those who rent come from outside Miami-Dade County and Florida, said De La Espriella, “which also contributes significantly to rental growth and occupancy.” .

Financial, private equity and tech firms are moving and establishing their headquarters in Miami-Dade, Pappas added.

“A lot of their employees are moving to the Brickell and Coral Gables area, which is really driving the markets,” she said. “It will continue to grow and compete with the locals. We hope that this will also lead to an increase in wages in the region and that the pay gap between out-of-town employees and residents will narrow a bit. “

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