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Miami Rents Are Wildly Unaffordable for Average Residents

Categories: Unreal Estate

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Photo vis ISeeEvryThing's Flickr | MNT Flickr Pool
The old rule of thumb is that you shouldn't pay more than 30 percent of your income on rent and utilities, but in Miami that's becoming a near-impossible guideline to stick to. A new Zillow analysis shows that the median rent (not including utilities) in Miami is equal to about 43 percent of the median income -- an all-time high and one of the highest rates in the nation.

All those fancy, exclusive high-rises that developers keep building aren't helping matters much.

That 43.2 percent spent on rent is up from the historical rate of 26.5 percent. Of the major metro areas, only Los Angeles has a higher average at 46.9 percent. Average New Yorkers, meanwhile, pay about 39.5 percent for rent. In San Francisco, it's 40.7 percent.

The national average, however, is 29.5 percent, and many other large metro areas have saner rent prices. In Atlanta, for example, the fraction of the median average spent on the median rent is just 24.5 percent of the median income.

The New York Times says, "The problem threatens to get worse before it gets better." Demand from high-end renters and buyers, usually foreigners, is so strong in Miami that developers have little incentive to build apartment buildings that would be affordable to someone making the average income in Miami.

"Increasing the supply is not going to increase the number of affordable units; that is a complete and utter fallacy," Jaimie Ross, the president of the Florida Housing Coalition, told the paper. "People say if there really was a great need, the market would provide it; the market would correct itself. Well, the market has never corrected itself, and it's only getting worse."

Essentially, there's a large demand for more sanely priced rentals in Miami, but the mechanisms of the market at the moment make it unlikely that demand will be met. The increase in luxury contraction has also affected property values, making it more difficult to construct affordable buildings as well.

As far as moving to the suburbs is concerned, the Times notes that any savings can be quickly wiped out by transportation costs.

So, as Miami's rich continue to get richer by selling fancy condos to other rich folks, the average Miamian continues to get screwed.

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188 comments
Iluv Sevim
Iluv Sevim

Rent isnt too high. The wages are too low.

Ana Lima
Ana Lima

not only in Miami Beach Broward County palm Beach the whole state of Florida where a minimum wage is $ 7.93 rent in the poor neighborhood is going from $650 for a 2/2 2now one the same hood for $1500 a month

Amy Rodriguez
Amy Rodriguez

The rent market is exceptionally high, the quality of many rentals are not updated and still rent increases. Eventually not even the homeless will be able to afford to live in Miami.

Steve Klare
Steve Klare

if u own rental property this is good news.

Ryan Rdw
Ryan Rdw

Make more money, that's it

Cts Limo Cts Limo
Cts Limo Cts Limo

No one ever cares about the regular folk in other countries us worst the salaries are too low comparing to rentals on Miami beach or downtown

Irene McFatridge
Irene McFatridge

It's like that everywhere, not just Miami. The little guy is getting squeezed everywhere.

Depot Msa
Depot Msa

David Montoya nope thats Iseeeverythings photo

Vijay Jayaseelan
Vijay Jayaseelan

Well, the rent is another bubble that will blow up some day. Sources say there's about 4 companies that had been formed under a parent company called "Black... " something that's buying out all the foreclosed properties in the neighborhood with cash. They are holding on to these properties that is spiking up the property rental rates and now that the property rental rates are up, they are reselling these properties at a much higher price called "Investment property" that supposedly generates more income. This artificial demand that has been created are further controlled by rental properties that also owned and operated by subsidiary companies. Rental rates are now determined on a daily rate basis pretty close to as a "stock rate" in NYSE exchange on a system that is controlled by the mother company. When apartments from leasing companies have doubled up, private investors invest in properties in the same neighborhood from the same mother company at a much higher price than acquired for, and try renting it out at the same rate as that of the leasing companies. Will this bubble ever blow up? Hard to say as the mother company keeps getting richer and there's nothing to keep them from expanding and nosing the entire property into a balloon. Miami has not doubled up in population. The artificial demand and the difficulty to procure bank loans to buy a property has made the rental rates double up. Can't point fingers here as big corporations find ways to exploit and become more successful. Nothing wrong with that.... Right?

David Mojica
David Mojica

Rent cheap here compared to other major cities

Art Kunhardt
Art Kunhardt

sunny isles is the same shit.... stolen Russian money...

Art Kunhardt
Art Kunhardt

rent at blue condo rose 75 percent in 2 yrs... fucking south Americans buying everything up with stolen money.... smdh, while the rent rises everywhere in the city of Miami and the quality of life remains the same...

Barbara Guttman
Barbara Guttman

Compared to " which " beach & cultural community? Try pricing Waikiki , Long Island , Westport Ct. , or any other place close to a city and beach with restaurants and museums world class . If you were a head of the curve and realized how under priced real estate was in the 80's compared to the rest of the country you did well. Remember when Lincoln rd and ocean drive were hovels..... And really fun to roller skate on.....

Ismael Antonio Sanabria
Ismael Antonio Sanabria

Not all new York people see assholes. Canadian people hell yeah. I'm from NY and I dealt with more phonies and assholes here than anywhere else. Still love it here. Still good people here

Phil Ramirez
Phil Ramirez

Besides, newcomers NEVER make it west of LeJeune, and if they do, they'll hit Doral in masse... Please, the real Miami?!

Phil Ramirez
Phil Ramirez

You blame "new constructions" for the rant spike?! Those erections are the new Miami money laundering scheme: SECURE LAND TO BUILD SHIT, DESPITE A FORECASTED 2% OCCUPANCY.

Phil Ramirez
Phil Ramirez

BOCA-like rents with Hialeah-esque quality of life...

James G. Camp
James G. Camp

Not only did we pay for the bailout in 2008/2009, this is the new real estate bubble. This nation can't afford a Clinton or another Bush in 2016, can't afford Obama either. Inflation is the only solution, but get the income to cover it, because the wolves will be coming after that raise.

Jessica Bailey Weatherspoon
Jessica Bailey Weatherspoon

And Andrew, you can't compare Miami to NYC, 2 completely different cities/economies/populations/etc.

Andrew Sager
Andrew Sager

Are you serious. You don't know high rent until you've lived in the big apple.

MP Quinn
MP Quinn

please raise all the rent to the highest point so these asshole new Yorkers and canadians will move out forever

Danny Lozano
Danny Lozano

With all of the new forecasted construction rents will go down!!!!

Anthonyvop1
Anthonyvop1 topcommenter

Pure BULL


There are plenty of affordable rentals in the Greater Miami Area.   It ain't in South Beach or Morning side but plenty in West Kendall, Doral and Hialeah.


I know I have asked it before but I have to try again.  Is there anyone at the New Times that ever worked in the free market?

BK33139
BK33139

@Anthonyvop1 Almost nothing below $1k even in those far-out suburbs, as well.  Have to go down to Homestead or up to Palm Beach for more reasonable rent in safe neighbourhoods. Add to this the cost of having a car in the city with the 3rd highest insurance in the country, since there is no viable public transportation out there, and besides many companies won't hire you unless you have "reliable transportation"--never mind if you live walking distance to the Metrorail and your cheap clunker is going to break down or get stuck in traffic or get towed and leave you stranded more often than the Metrorail will.

psyboy
psyboy

@Anthonyvop1 Bullshit it ain't.  Free market capitalism is 1 thing but turning people into serfs?  I left to go 1 county north (and am still paying more but better location and amenities, although for how long)? We had new landlord's that clearly wanted to run the bldg into the ground to make current tenants exit so they could refurbish for a wealthier crowd (or destroy the bldg and rebuild for the rich crowd they want to attract - OK that's their right as owners in our la de dah capitalist free world but more than a few rent controlled elderly were knocked to the side meanwhile, don't we have an obligation to show a little judeo-christian compassion too?).  While looking for new digs and concentrating on M-D co. I checked out rents everywhere; including Hialeah - asking $1100 and up for one bedrooms and studios is as bad as South Beach or Morningside Anthony - and is in itself criminal and yes.... bullshit.

Anthonyvop1
Anthonyvop1 topcommenter

@BK33139

You speak as if I or anyone else owes you something.  

How come I don't have your problems?

Anthonyvop1
Anthonyvop1 topcommenter

@psyboy 

Study up your economics.

Under the free-market system Serfdom is an impossibility.

As for the rents and not finding a place in your price range you have two options in a Free-Market/Free Society.

1.  Live someplace else.  you have no more a right to live in Miami with an affordable rent than I have the right to own a Ferrari 458 at $150.00 a month.  Move.

I would love to own a Beach Front ranch in the Caribbean but I haven't made that kind of money.....yet.  Give me a few more years.

If you can't afford the rent move to someplace you can.  I hear Detroit is cheap

2. Make more money.  Looking at how sales and occupancy rates have been going up for the last 3 years in the county(Hence the reason for the high rents) there are loads of people who are doing well enough to buy/rent at today's prices.

That is the beauty of the Free-Market.  it provides what the people want.  

The Problem with the lack of low cost housing is that the Government makes it unprofitable.  Between ridiculous regulations, paperwork and taxes combined with having to compete with the actual government for tenants it doesn't make sense to get into that market.

I know because I use to own low income rental property.  Barely broke even after the government stole their pound of my flesh.

psyboy
psyboy

@Anthonyvop1 @psyboy Well you're absolutely right on several counts; I majored in theology and didn't do too good in economics so I could certainly use a refresher course.  And no, I don't deserve to live in beachfront property or even on the beach just because I want to. But I also believe the beauty of the American society is there used to be a place for everyone from top to bottom (economically) in nearly every neighborhood or municipality and we all benefit from diversity.  As far as making more money, well I have a decent job in the legal field and I do side work as a freelance writer, I can't imagine many more ways to make more $ that would allow me the free time to at least still take public transportation to the beaches or parks and enjoy at least a few hours out of my week to participate as a human in this good green earth.

Anthonyvop1
Anthonyvop1 topcommenter

@psyboy 

" the beauty of the American society is there used to be a place for everyone from top to bottom (economically) in nearly every neighborhood or municipality and we all benefit from diversity."


Where was this land of Rainbows and Unicorns?


It sure wasn't in any part of the USA that I recall.  Neighborhoods were always based on economic status.  Always have...always will be.

psyboy
psyboy

@Anthonyvop1 @psyboy Then you weren't in Miami Beach from 1986 through the turn of the century where the gay community created a unique melange of people from all walks of life, ages and colors as the Beach fought off developers and restored the pastel candy colored deco buildings to their former glory; of course much kudos go to Barbara Capitman and her selfless efforts but for a while there were gay straight bi, black, white hispanic, old and young and life was rather egalitarian.  SO yes it was a rainbow life... I was there and so were many others.

Anthonyvop1
Anthonyvop1 topcommenter

@psyboy @Anthonyvop1 

Get your glasses checked.  

South Beach was a slum where the poor elderly were trapped in their apts with an influx of Marielitos and crack dealers.

Once Gentrification set in the Elderly, Latins and blacked were pushed out to be replaced by mostly Latin Yuppies(Remember them?).


Check this out http://mediad.publicbroadcasting.net/p/wlrn/files/201309/Racial_Dot_Map.png


Notice how your Rainbow, South Beach is strangely Latin tan?


The only neighborhoods were one sees a mix of races and economic status is in older neighborhoods undergoing gentrification.  Over time the poor leave and the Upper classes move in.  Look at what happened to Brickell.

Wait 20 years and see what happens to Midtown and Wynwood.


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