Rents in the Miami metropolitan area are forecast to rise nearly twice as fast as the national average over the next year. Ouch.
While nationally, rents are forecast to grow 1.7 percent, the Miami-Fort Lauderdale area rents will jump by an average of 3.2 percent, according to the latest Zillow Rent Forecast. Miami’s median rent of $1,885, according to Zillow, rose 4.2 percent last year, so a slowdown is predicted, if that is any consolation.
Zillow’s report released Friday predicts rent trends down to the ZIP-code level across the United States. Zillow is a national real estate sales and rental marketplace and data center.
According to the report, rents will rise the most, 11.3 percent, in the ZIP code 33109 — that’s Fisher Island, the haunt of the rich and famous. That’s also the ZIP with the highest household income per capita, so maybe that $14,698 median rental won’t break the bank.
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But what about the 6.1 percent increase forecast for 33010 in Hialeah, where the median rent is already $1,944, according to Zillow? Other areas with larger-than-average increases include ZIP 33469 (Tequesta), up 7.4 percent; 33032 (Princeton), up 6.9 percent; and 33173 (Kendall), up 5.4 percent. Certain ZIP codes in Delray Beach, Fort Lauderdale, Miami Gardens and Miami also are forecast to jump more than 5 percent.
By contrast, in the already pricey Brickell and Edgewater neighborhoods of downtown Miami, rents are forecast to grow less than half a percent over the next year.
Nationally, rents in Seattle and Portland are expected to rise the most over the next year at 7.2 percent and 6 percent growth, respectively. Denver, San Francisco and San Jose are forecast to see rent appreciation of more than 4 percent. Only 11 of the 35 largest metros will see a slowdown in rents.
Fast-rising rents in the west continue a trend over the past several years. Last year, Miami and Boston were among the 10 fastest-growing rental markets, but over the next year, San Jose and Cincinnati will replace them in the top 10, Zillow said.
However, Miami is in the top 10 for monthly median rent, according to Zillow. The Magic City’s monthly median rent of $1,885 is a long way from the $3,406 San Franciscans need to budget, but getting uncomfortably closer to the $2,399 median rent in New York City. But if you live in the Edgewater or Brickell sections of downtown Miami, you’re already paying Big Apple prices, with median rents of $2,448 to $2,494 respectively, according to Zillow.
“High rent growth in these markets is being driven by high demand and low supply,” said Zillow Chief Economist Dr. Svenja Gudell. “We have more renters today than in the past and most newly formed households are renter households. This, taken together with a lack of new rental construction at less expensive price points, has been a recipe for rising rents.”