Miami Rental Market Surges

Miami is more than sunny skies and luxurious oceanfront properties, it’s also a sizzling market for real estate investors. With a whopping 6 million residents[i] in the Miami metro area, 75,000+[i]  of which were added last year alone, and an accompanying 44,000+[ii] newly created jobs, Miami’s rental market has experienced a major surge over the past several years. Residential investment properties are getting leased quickly, averaging a mere 21 days on market.[iii] Investment property prices have also appreciated 33.3% in the past five years,[iii] while median rent rates have increased nearly 10.0% since 2011.[iii] 

Earning a top 5 spot on Walkscore’s 2016 list of the most walkable cities, Miami is a tourist hotspot and a main player in international trade with the Caribbean and Latin America. Regarded as one of America’s coolest cities,[iv] Miami is a mecca for beaches, nightlife and bicycling around town. The Miami Metropolitan Statistical Area (MSA) is home to 13 corporate headquarters in the Fortune 1000[v] and has a strong, diverse economy fueled by the construction, education, leisure and hospitality, healthcare and financial services industries. The gross metropolitan product (GMP) is $296.1 billion, ranking Miami #11 among all U.S. metro areas.[vi] Unemployment is at a comfortable 5.5%, about half of what it was five years ago.[ii] Local vacancy has plummeted as demand has increased, currently sitting at 5.0%, down from 9.2% in 2011[iii] and considerably lower than the national average of 7.4%.[i] 

Need more convincing? Real Property Management Miami, a franchise of one of the largest property management companies in the country, gives a few more reasons to consider the Miami market:

  • Solid construction techniques in Florida mean your investment will last longer
  • Even with tropical storm Irma, major natural disasters are predictable and generally rare
  • A higher percentage of blue collar workers translates into more renters and fewer homebuyers

With exploding job creation comes population growth and housing demand, two key indicators of a strong rental market to perceptive investors. Property values are likely to continue appreciating due to the rise in rental demand and a steady supply of tenants, justifying higher rents and an improved bottom line for you, the investor.
 

Sources:
[i] Census 2014
[ii] Bureau of Labor Statistics
[iii] RentRange
[iv] Ranker
[v] Fortune
[vi] Moody’s Analytics

BlogMichael Shai