06 Apr RENTAL APARTMENTS BECOMING AN AFFORDABLE AND ATTRACTIVE OPTION IN MIAMI
April 6, 2018
As commercial construction in Miami intensifies and condo supply still outpaces demand, residential rental prices are dropping. For the first time ever, Downtown Miami is seeing more apartment rental units than condominiums being delivered; in fact, many developers are actually holding off on breaking ground with condo construction and slowing down deliveries amid decreasing condo sales, immigration and political uncertainty.
This bodes well for the renter who will encounter more choices with reduced qualification requirements and lower prices in a market that favors renters. This trend echoes those found in other large markets like Manhattan, where an influx of new construction has saturated the market leaving landlords offering free months of rent, move-in incentives, and more lax pet policies. Similar incentives and more are already evident in Miami as well.
Another reason some apartments can be more attractive than condos is the speed and ease of move-in. Instead of requiring board approvals, a lengthy application process, additional move-in fees, and huge financial hurdles like first, last and security deposits, most apartment communities make it as easy as paying a small processing fee, making a deposit less than one months rent, then signing your name and they hand over the keys.
This increase in rentals isn’t confined to Downtown Miami, as we have also seen a large influx of new inventory in other areas such as Doral, Brickell, Midtown and Edgewater. With apartment rental prices decreasing from 2 to 4 percent, buildings will have to find ways to attract new renters into the area. This may not be feasible with the deluge of new condos in the pipeline that most likely will end up as rentals. This will further saturate the market with availability and further the trend of lower rents and sweeter deals from leasing offices.
These rentals aren’t just for young professionals. More families and even seniors are opting to rent. A new form of senior housing is popping up around South Florida in areas like Doral, Miami Lakes and Dadeland. Offering safe, fun and maintenance free living with activities and amenities, these properties are far from traditional retirement homes. These complexes designed for this 55+ age crowd are offering clubs, pools, movie theaters, and restaurants for retirees not looking to live out their years playing bingo.
But what about those who are still looking to live in the heart of the action? Will Miami see developments following the model of Jimmy Buffet’s Latitude Margaritaville in Daytona and Hilton Head for the 55+ Parrot Heads? How about a place on South Beach for Senior Surfers or Downtown Miami for those who aren’t ready for early bird dinners?