Renters are paying less for apartments in Miami, but there are issues. See the costs
While rents in South Florida continue to decline, the region is still one of the least affordable places to live in an apartment, according to Seattle-based real estate company Redfin.
In South Florida, the median apartment rent has dipped to $2,373 as of Redfin’s December 2024 report, slightly down from October.
The figure represents a drop of about 4% from 2023 when the median rent was at $2,470. The average median rent was $2,560 in October 2022.
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Renters nationwide on average need to earn $63,800 a year to afford the typical apartment — studio to three bedrooms — according to Redfin. That’s the lowest amount in three years, the company found. But South Floridians would need thousands more.
Rental affordability across the country should continue to improve in 2025 as wages grow and rents remain flat, according to Redfin Senior Economist Sheharyar Bokhari, who credits the recent boom in apartment construction.
“The affordability gap between renting and buying is likely to widen further in 2025, as home prices rise and mortgage rates remain high. That means potential homebuyers — especially from younger generations — may decide to continue renting for longer, as it’s the only affordable option,” Bokhari said in the Redfin study.
How Miami area ranked
Even with dropping rents, Miami is ranked second on the least affordable list, sandwiched between Providence, Rhode Island, at No. 1 least affordable, and New York at No. 3.
Three Texas regions — Austin, Houston and Dallas — top the list as the most affordable metros for renters.
Redfin used the Census definition for Miami, which covers Miami-Dade, Broward and Palm Beach counties, said Redfin Communication Director Angela Cherry.
The income required to afford the median asking rent, when you factor in all of your other expenses, was $94,920 in Miami. But the estimated median renter income was $57,157. That’s a nearly 40% difference between income required and what you actually make — or $37,763 in dollar terms.
What does affordable mean?
“A rental is only considered affordable if the renter spends no more than 30% of their income on rent, since people need their income to support other expenses as well, like food, childcare, education, utilities, medical expenses,” Cherry said in an email to the Miami Herald.
According to the U.S. Bureau of Labor Statistics, wages and salaries, the largest component of compensation costs, grew 2.9% for the 12-month period ended December 2024 in the Miami-Fort Lauderdale-Port St. Lucie area. Nationwide, wages and salaries rose 3.7% over the same period.
Work management firm Asana analyzed the bureau’s data on hourly wages and inflation over the 2020 to 2023 period and found that Miami had the highest wage growth among large metro areas and outpaced inflation.
Wages in the Miami area increased by 20.2%, above the 19.1% inflation rate — from $18.60 an hour in 2020 to $22.36, according to the Asana analysis and reported by NBC6.
But the rise may not be enough to offset a wage and cost disparity.
“Miami continues to attract new residents, including remote workers, retirees, and international investors, keeping rental demand high. While rents have softened slightly, incomes haven’t risen at the same pace. The median income in Miami lags behind other expensive metros, making affordability a persistent challenge,” said Daryl Fairweather, chief economist at Redfin, in an email interview with the Miami Herald.
“Expenses beyond rent — such as insurance, transportation, and utilities — add to the financial burden, making it harder for renters to allocate income toward housing,” Fairweather said.
In March, online mortgage marketplace Lending Tree, using Census data from 2023, found that renting vs. buying favored apartment life in the short term. In the Miami area, the difference was a $510 a month savings for renting compared to paying a mortgage and all the costs that come with that.
Given Miami’s transient nature, with people on the move, renting can be the way to go in the short term. But finding affordable housing as opposed to the growing trend in luxury apartments, isn’t easy on a less than stellar income.
Condo fees
South Florida condo owners, drowning under spiraling insurance rates, also are burdened by spiraling expenses. The cost of reoccurring repairs and a new state law calling for reserves after the collapse of Champlain Towers South in Surfside in June 2021, saw association fees soar from 2019 to 2024.
Miami-Dade’s median monthly condo association fee last spring and summer was $900 compared with $567 over the same three-month period five years earlier before the pandemic in 2019, according to Redfin.
Broward saw fees skyrocket from $392 over a three-month period in 2019 to to $613 in 2024.
There are efforts underway to address some of the housing problems, putting a focus back on apartments.
Affordable apartments
In January, Jackson Memorial Hospital announced plans to transform Miami’s health district by clearing a path toward hundreds of new apartments to help workers live more affordably near their jobs — a challenge given South Florida’s runaway housing costs, the Herald reported.
Jackson plans to demolish two office buildings across from a Metrorail station in 2027 to make way for affordable and workforce housing in two towers filled with shops, a hotel and more than 800 apartments.
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Sawyer’s Walk, a new development of apartments and retail in Miami’s Overtown neighborhood, opened in 2024. Units are marketed as affordable senior living. The apartments are priced according to income. Monthly rent ranges from $795 for a studio to $1,786-$2,042 for a two-bedroom, depending on median household income, according to Miami-Dade County.
Sawyer’s Walk includes the area’s first big box Target store, an Aldi supermarket and a Burlington discount clothing store.
“New housing construction, particularly in the affordable and workforce segments, has not kept pace with demand. Zoning restrictions and high construction costs contribute to this shortfall,” Fairweather said.
Helpful tips
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The Redfin economist offered a few tips for Miami renters who are navigating affordability challenges.
▪ Negotiate your lease, he says. “With some rent softening, landlords may be more open to negotiation — especially for longer lease terms.
▪ Be a savvy consumer. Nostalgia buffs may recall the lesson behind an old Syms clothing store TV commercial in which the chain’s owner Sy Syms beckoned: “The educated consumer is our best customer.” Fairweather suggests people “come prepared with examples of apartments for rent that are advertising lower prices.”
▪ Seek possible resources. “You could also consider subsidies and assistance programs that offer housing choice vouchers to eligible renters,” Fairweather advises, “or look for roommates to help split the costs.”
