- Miami-Dade County, propelled by its burgeoning tech industry and a business-friendly environment, was named the hottest rental market in America in 2023, according to RentCafe’s annual report.
- More than 71 percent of Miami-Dade renters renewed their leases this year, with each available rental unit attracting an average of 22 applicants.
- Despite a 3.7 percent increase in housing supply, it failed to significantly reduce rental costs or demand.
- In November, Miami’s average rent was $3,280, ranking among the most expensive metro areas in the country.
Miami-Dade County was this year’s hottest rental market in America, according to RentCafe’s annual report, driven by its burgeoning tech industry and a business-friendly environment.
The county’s Rental Competitivity Index (RCI) — a measurement of rental market competition using factors such as lease renewal rates and occupancy rates — is 122, the highest in the country. The next highest RCI nationwide was North Jersey, New Jersey at 116, while Broward County was Florida’s second most competitive region, with an RCI score of 101.
Miami-Dade County recorded high occupancy rates in its rental properties in 2023, with 71.2 percent of renters electing to renew their leases. For those seeking new housing, each available rental unit in Miami attracted an average of 22 applicants.
RentCafe’s report attributed the high rental demand to Miami’s growing tech sector, which draws people globally, as well as a lack of income tax.
“The metro’s thriving tech scene continues to attract innovators and entrepreneurs from all around the world, driving the competition for rental apartments,” RentCafe’s year-end report reads. “Plus, its business-friendly climate offers incentives and opportunities for growth, while the lack of income tax makes it a top renting spot for both locals and newcomers.”
In November 2023, the rental market in Miami saw the average rent reach $3,280, placing it among the costliest metro regions in the country. Although there was a 3.7 percent increase in Miami-Dade’s housing supply this year, it did not significantly alleviate the high demand for units or facilitate downward rental cost trends.
In South Florida, the housing affordability scenario is notably severe, as detailed in the November Miami Metro Affordability Report. The City of Miami holds the highest median home price in the region, recorded at $619,000. The report further identified that homeowners in Miami allocate 81.96 percent of their income towards mortgage and property tax payments, signifying a gap between housing costs and income levels.
Broadly speaking, Miami’s real estate market experienced the second-highest price increases nationally this year with a 6.7 percent gain, as reported by Black Knight, a mortgage data and analytics company. Recent data also points to a convergence of Miami’s home price growth with the national average.