Renting in Miami is — surprise! — unaffordable, according to new analysis that ranks the Magic City even lower than perennially expensive locales like Manhattan and San Francisco.
Miami ranked No. 1 in Forbes’ annual “Worst Cities for Renters” list, citing the city’s limited supply of rental apartments and relatively low pay. The result: While Miami’s average rent is $1,386 — 14th out of 46th markets evaluated by Marcus & Millichap, a commercial brokerage and real estate research firm — rent gobbles 36 percent of the median Miami income, the third-highest share.
Rents are still higher in other cities. Manhattan, for example, lists an average of $3,497 a month, and rent eats 54 percent of the median renter’s income. Miami, however, has a lower vacancy rate of 2.2 percent, compared to Manhattan’s 2.7 percent.
Fort Lauderdale ranked 12th, with an average monthly rent of $1,445, comprising 31 percent of median income share, and a vacancy rate of 3.9 percent.
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The best city to rent, according to Forbes? Indianapolis.
The analysis took into account only apartments for rent and not rental condos, which make up a big share of Miami’s market. Condos, however, tend to rent at higher rates than apartments.
The number of new condos available in downtown Miami is expected to surge this year, according to a Downtown Development Authority study released earlier this week, which should drive down rents as the supply of units is absorbed.
Buying property is not much better, at least not for young professionals. Economists worry high housing prices are draining skilled workers from South Florida.