Rent is increasing more in this North Broward city than anywhere else in the country
Pompano Beach in northern Broward County had the highest rent increase in the country over the past year.
Apartment buildings for rent with over 50 units in Pompano Beach in Broward County experienced an average 11% increase in
The apartment buildings for rent in the city had an average 11% increase in lease payments per month, from an average $1,377.72 to $1,548, according to a study by the Santa Barbara-headquartered residential rent listing company RentCafé. The company collected data for its listings of multifamily buildings with over 50 units across the 260 largest metro areas in the country, including the Miami metro area, which includes Miami, Fort Lauderdale and West Palm Beach.
An influx of about 1,600 high-end apartment units in Pompano Beach drove up rent, said Sanziana Bona, researcher for RENTCafé.
“All those units targeted mostly lifestyle renters — high-earning professionals or downsizing baby boomers that have the means to buy but prefer to rent,” Bona said.
There’s also a demand, not just inventory, for multifamily dwellings in Pompano Beach, Bona said.
“The spillover effect caused by the high rates in Fort Lauderdale and other pricey rental markets in the area is visible, as more and more renters try to relocate to less expensive cities.”
.jpg)
Rent also grew in other cities in Miami-Dade and Broward counties from March 2019 to March 2020. Aventura followed Pompano Beach, with a 8.9% year-over-year rent increase. Rent averaged $2,110 in March 2020. Deerfield Beach and Tamarac tied with 5.9% rent growth, with rent averaging $1,467 and $1,491, respectively.
Some South Florida cities experienced minor dips in rent.
Doral and Hollywood tied with a 0.7% drop in rent, and Miami Beach saw a 0.1% drop. In Doral, rent averaged $2,015 in March 2020, from $2,029 in March 2019; in Hollywood, $1,466, from $1,476; in Miami Beach, $1,993, from about $1,994.
“Rent is not as predictable as we thought it would be,” Bona said. “The inventory in the market and number of those added influence it.”
The coronavirus fallout did influence rent for some cities in March, she said.
The average rent nationwide suffered its first deceleration from February to March since 2016, according to the nationwide report study. Average rent rose by 3.2% in February and by 2.9% in March, showing early signs of the effects of the pandemic.
Bona expects it will play a larger role in the months to come because “renters will not be able to move as freely and due to the health of the economy, including job losses.” As a result, Bona said rent increases could slow.
This story was originally published April 8, 2020 at 7:00 AM.
