Our city might be beautiful and busting, however the rent is becoming a burden! Another newsletter, another week, and again, rent is just too high. The residents of Miami are more burdened than any other, according to a study done by Apartment list.
The study shows that just about 62.7% of Miami renters are cost burdened. What does cost burdened mean? If you pay more than 30% of your monthly income to rent, then you are cost burdened. 56.5% of residents are cost burdened with 34% of Miami renters are paying more than 50% of their monthly income to their housing expenses! That is an absolutely mind-blowing statistic. During the pandemic, we saw rents begin to plummet. I personally found my 2-bedroom apartment in the heart of Brickell for $2,800 (Thank you Jeremy Hanson!) which is a dream for today’s market.
What do you do? You buy a new place, that simple! Oh, wait… inventory is at a 40-year low with many places selling almost 10% above asking? Interest rates are almost double what they were just 6 months ago? This market is challenging to say the least! Miami home values are rising much faster than wages. The Apartment List did a study as to whether a household making the median income could comfortably afford rent, which, by the way, was $1,360 in 2018! The analysis concluded that the average household would need to spend 39.3% of its income to rent each month.