Miami Apartment Prices Among Fastest Rising in US

MIAMI — The Miami area finished 2016 with the dubious distinction of having the 16th fastest growing rental prices in the United States.

"Miami’s rental market ended 2016 with a bang, with rent prices up by an annual 5.9 percent in December," according to RENTCafé's newly released Year-End Apartment Market Report. "It now costs $1,562 (per) month on average to live in Miami."

That's great news for landlords but not so much for struggling Miamians who now must pay more for their apartments than a year ago.

"Except for North Beach where rents have stagnated y-o-y, every Miami sub-market has seen substantial rent increases," Amelia Otet of RENTCafé told Patch on Wednesday. "Coconut Grove, Brickell and South Beach are the top three most expensive places to live in Miami, with rents north of $2,000/mo."

Overall, Otet said that Miami remains one of the most expensive rental markets in the United States.

Rents at the Shorecrest Club in Miami for example, range from $1,525 for 1-bedrooms to $2,575 for 2-bedroom apartments, according to RENTCafé.

In December 2015, rents had increased approx. 7.5 percent compared to 2014, making Miami the 12th market for rent growth in last year's report.

"In 2016, approx. 3,700 new units entered the Miami market which has indeed helped rents cool down across the board, but it’s still not enough to meet the ever-growing demand for rental living," added Otet.

It is Tampa, not Miami, that leads Florida rent growth in 2016, RENTCafé reported. "Tampa rents increased by 6.2 percent on an annual basis, reaching $1,162 on average for an apartment."

The market report represents a comprehensive analysis of the rental market focusing on the 75 largest cities in the U.S.

Other findings in the report:

• San Francisco apartments are getting cheaper.
• Sacramento rents are at record highs.
• Manhattan’s hot rental market is slowing down.
• Renters in 6 major cities practically paid a 13th month of rent in 2016.

The report on the US apartment market is based on data from RENTCafé's sister company, Yardi Matrix.

While the report found that new apartment construction in the Miami area is robust, it still fell short of demand.

Image of the Shorecrest Club in Miami courtesy of RENTCafé.