SPRING AND SUMMER RENTAL BOOM IN SOUTHEAST FLORIDA
With the warmer seasons ushering in a demand for short-term vacation rentals and permanent housing, Southeast Florida is seeing a significant rise in the rental market. In April, the number of multifamily units rented out soared by 35% from the previous month, hitting 4,420 units. Meanwhile, the single-family market saw a 12% increase, with 2,270 homes rented out.
ABSORPTION RATES ON THE RISE
Absorption rates, which measure the number of rented units compared to total listings, also climbed in April:
– Broward: 33% (up from 27% in March)
– Miami-Dade: 31% (up from 23% in March)
– Palm Beach: 25% (up from 23% in March)
– St. Lucie: 22% (up from 19% in March)
STRONG DEMAND AND RISING PRICES
The multifamily rental market is showing resilience with high demand, especially as spring and summer create seasonal interest among tenants and new arrivals. The median rental price for apartments in Southeast Florida increased by 6% in April, reaching $1,735 per unit. For single-family rentals, the median price jumped by 9% to $2,350 per unit.
PANDEMIC IMPACT ON THE MARKET
The pandemic continues to shape the rental market here, with remote work and virtual learning pushing people to seek larger, more affordable homes in suburban areas. As a result, the demand for single-family rentals is rising, reducing the need for landlords to offer rent concessions.
LOOKING AHEAD
With more people getting vaccinated and pandemic restrictions easing, experts anticipate a gradual return to pre-pandemic rental trends. As the economy recovers, rental rates might stabilize or even decrease. Landlords may start offering more concessions and flexible lease terms to attract tenants and compete with the growing supply of short-term vacation rentals.
OPPORTUNITIES FOR LANDLORDS AND INVESTORS
Overall, the rental markets for both multifamily and single-family homes in Southeast Florida are experiencing high demand and rising rental rates, making it an excellent time for landlords and investors. However, it’s crucial to stay informed about market trends and be ready to adapt to changes. Keep an eye out for new opportunities in the rental market, and don’t hesitate to seize them. Your successful rental property is just around the corner!
Southeast Florida Residential Rental Market Report – April 2024, Miami Realtors Association