Rental prices across the country have spiked, Miami leads the nation with a 58% increase.
Mayor Daniella Levine Cava has officially declared a housing crisis in Miami-Dade County. While much of the U.S. is also experiencing a rise in housing and rental prices, Miami-Dade prices have skyrocketed, particularly as many people have chosen to relocated to the sunshine state following the COVID-19 pandemic.
RealtyHop ranked Miami as the least affordable market in the nation, based on the median income in Miami. RealtyHop determined that households would need to contribute approximately 78% their income towards homeownership costs. Second and third ranked are New York City and Los Angeles, respectively.
Miami influencer, Jocelyn Castillo, had her rent doubled for her downtown Miami apartment. “I grew up in Hialeah. Moving to Edgewater felt like a big achievement for me,” says Castillo in an interview with Narcity Miami, “and seeing that so many of my friends are either moving out or canceled their plans to live here, own here sucks! It’s making the Miami community feel like living in Miami is unattainable.”
Housing prices in Miami have been rising for a while, however between 2021 and 2022 the increase in has been astronomical with The Real Deal estimating the increase to be 58%. Apartment List reports that 54% of apartments in Miami cost over $3,000 per month and 0% cost less than $1,000 per month. Based on the 30% rule, renters should not spend over 30% of their income on housing expenses, to be able to afford the average priced one bedroom apartment in Miami your income should be at least $82,200 or higher.
In response to the housing crisis, Mayor Daniella Levine Cava is hoping to distribute $41 million in federal funds as rental assistance. As housing prices continue to skyrocket, local Florida government may start to look into issuing rent control orders. As it currently stands Florida law prohibits local governments from imposing rent-control measures, which has allowed for the unbridled hikes as stated by The Real Deal.
The hikes in housing prices have shown no signs of letting up. Federal Reserve officials report that there may be a housing bubble forming. A housing bubble, as defined by Rocket Mortgage, occurs when real estate demand outpaces supply, causing the average price of properties for sale to rise — often at a high or alarming rate. Florida, amongst other states who are experiencing these alarming jumps in housing, are at risk if they can not maintain its current population growth; which has also experienced a spike since the beginning of the Covid-19 pandemic.
The current state of housing prices in Miami is unnerving for many, particularly those who are vulnerable and in potential risk of eviction. If Florida is able to approve the rental assistance to address the housing crisis, the county will be able to cover up to 20 percent of a rent increase for up to three months, and could cover up to $3,000 a month for up to a year in back rent, says The Real Deal. Previous assistance funds have be successful in turning around nearly 600 cases in Miami-dade.
