Miami — If you’ve been thinking that you want to move to Miami and see what all the hype is about, you had better make sure you can afford it first because this isn’t the Miami it used to be. Areas such as Downtown, Brickell and Edgewater have seen rent prices increase between 30-65%
It’s no secret that Miami is becoming the “Capital of Capital,” a tech hub, a crypto hub and even a financial center worthy of attracting venture capitalists and hedge funds from New York and California. But all this comes at a cost, and locals are feeling it when it comes to rents which have skyrocketed in the last year; even at a hefty price, they are in short supply.
According to Zumper, a rental platform in the U.S., the average rent for a one bedroom apartment in Brickell went from $2,100 in December 2020 to $3,283 in December 2021, representing a 56% increase. A 2 bedroom? Jumped from $2,870 to $4,750, representing a 65% increase.
“It feels like we’ve had 3-4 years of growth in 18 months,” said Ryan Rea, a downtown resident. Rea, a growth hacker by day and head of growth for Miami Techlife the rest of the time, was forced to move recently because his landlord was raising his rent by $1,000.
“My whole thing about this is yes it’s a problem, but I think a lot of private landlords are taking advantage; they are definitely price gouging,” Rea said.
Javier Ramirez, a tech founder who lives in Brickell, had a similar experience. He moved here from San Francisco two years ago and found the rents reasonable, finding a 2 bedroom for $2,600, but this year the landlord raised it to $4000. “I then looked at the Icon building in Brickell and saw a 1 bedroom for $4000. That’s New York prices. I’m an entrepreneur, and I can live anywhere, so if I’m going to pay New York rents – I mean, I’m not going anywhere – but it makes you think,” he said.
Ramirez ended up moving to Midtown where he found a 1 bedroom for $2,800, $200 more than he previously paid for his 2 bedroom in Brickell.
With all the influx of people from California and the North East these past two years, came their high salaries. As so many people are still able to work remotely, they are earning their NY salary but spending it in Miami and driving up the prices.
“The increase has been from March to now. It’s not normally like this. The only way you’re not going to get your rent raised is if you have a really nice landlord, because they are all raising rents by 30-40%, especially in Brickell,” said Virginia Latanzi, a long-time realtor in the area.
Last fall we had the early movers try out South Florida for the winter, and many ended up staying. They notified their friends back home about how great life was, and recruited heavily.
“The demand is really high. People from the north have moved here and they are all working at home. There’s no rent control. If I put a rental on the market, it doesn’t even last a week,” said Latanzi. “People from NY are willing to pay $8,000 for a two bedroom apartment, do you believe it?” she added.
A city that was often mocked for having too many luxury condo buildings, now, all of a sudden, can’t build them fast enough.