Miami’s Housing Shortage Ranks Seventh in Report, Florida Witnesses Highest Rent Increase Nationwide Since 2020
June 30, 2023
According to recent research, Miami has been identified as the seventh metropolitan area facing a housing shortage. At the same time, Florida has witnessed the highest rent increase in the country since 2020. Rental prices have continued to surge, with a staggering year-over-year increase of over 46% for a two-bedroom rental on Miami Beach as of June 2023. Despite leading the nation with a record 28,000 units currently under development in the Miami metro area, developers have struggled to keep up with the demand, resulting in soaring prices.
The study, conducted by the real estate site PortlandRealEstate.com, analyzed data from various sources, including the National Association of Realtors, the US Census Bureau, and the Bureau of Labor Statistics. The research revealed the top 10 metropolitan areas with the highest housing shortages relative to job growth by examining the ratio of new job openings to building permits. Other areas facing housing shortages besides Miami include San Francisco, Springfield, Urban Honolulu, Syracuse, Boston, New York City, Chicago, New Haven, and Los Angeles.
Miami’s job growth-to-building permits ratio 20.2 indicates a significant challenge in the housing market. The ratio suggests that the job market is experiencing growth that outpaces the construction of new housing units. As a result, the limited housing supply has led to increased housing costs and affordability challenges for residents.
Demetri Demascus, Co-Founder of PROFILEmiami, Managing Broker of ALTARA Properties, and developer of Casa Azzura townhomes in Coconut Grove, commented on the situation: “Miami is seeing rapid job growth as companies and employers move to the city for its pro-business environment and high quality of life. This event has led to a higher housing shortage than most other metro areas as developers have struggled to keep up, leading to high prices and rapid rent growth.”
In Florida, rent prices have surged by 45.77% since 2020, the highest increase nationwide. The demand for businesses to relocate to the Sunshine State has contributed to the rise in rent prices. The study by Los Angeles-based luxury real estate experts in Los Feliz revealed that Florida and Colorado have experienced rent price increases of over 45% since 2020. With 34.2% of the US population renting their homes, the analysis compared the average rental prices in each state in March 2020 and March 2023 to calculate the percentage increase.
Florida’s average rent has reached $2,127.86 in 2023, marking a significant increase of 45.77% compared to the 2020 price. The state’s appeal, including its low taxes, thriving job market, and growing metropolitan cities, has attracted both retirees and tourists, impacting rental prices.
