High-Priced Rental Market is Great for Investors…Not so Much for Renters

 
Renting in Miami is crazy expensive, and a study released recently shows that 1 in 3 renters in South Florida spend at least ½ of their income on housing, causing renters to be “severely cost-burdened,” according to the Miami Herald. Florida is the least affordable state in the United States for renters, and South Florida is the highest priced rental market in the entire state.

What does this mean???

Well, if you are looking to rent, most areas in Miami including Downtown Miami, Brickell and Miami Beach are not affordable for many, but this is a dream for investors. Pricey rental rates in South Florida attract investors, especially foreign buyers. Foreign buyers look at the market volatility of their home countries and see the opportunity to secure a high-income-producing property as a safe place to “deposit” their money. Just recently, I set an all-time record in Downtown Miami when I rented PH6307 at 900 Biscayne Bay at a rate of $18,000 per month for a client of mine. I work with many foreign clients who are strictly looking for good investments, and high rental rates provide a great opportunity to ensure just that. Although many look at the high-priced rents as a bad thing, I look at it as an opportunity for my clients to make money.

If you are interested in purchasing a condo investment in Miami, so you can take advantage of the high rental rates, please contact Michael Light. I have sold more than $20M of condo inventory this year in Downtown Miami and Brickell and know the market inside and out. You may reach me on my cell at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.