Happy New Year Investors!
We hope that you all had an amazing holiday season enjoying the fruits of your labors and investments! The new year continues to bring good news for the overall South Florida real estate market. Value remains strong and consistent in the residential sales sector. And in even better news for investors the rental rates in several Miami suburbs have seen spikes in not only the number of new renters but also for increases in rent.
The Benefits of Paradise
This comes as really no surprise to those of us who live and work down here especially at this time of year. As we watch the new names of the winter storms barrel through the Midwest and Northeast while sipping coffee on our patio in our shorts! But enough bragging although it is of no surprise it is always welcome news to see that the data is reflecting our feelings about the market.
Some Awesome Facts and Numbers
The data shows that several Miami area suburbs in Miami-Dade and Broward counties are seeing anywhere from a 40-53% increase in the number of renters over the past 5 years! Any business that is seeing a 50% increase in customers is a very healthy business. And of course the supply and demand economics are putting upward pressure on the average increase in rents, which is ranging around 19% on average. So if you bought a $2000 a month rental in Doral 5 years ago, which is about average for that city, then you are now charging around $2400!
Beating Inflation Big Time
Over the last 5 years the average inflation rate in this amazing country has hovered around 2%, which means things cost about 10% more today than they did 5 years ago. You don’t have to be a math wizard to see that the increase in Miami rental rates has been double that of inflation. The bottom line is that if you own rental real estate in Miami you are doing great. You should also continue to purchase more rental properties as the factors that are leading to this success are not going anywhere. Quite the opposite, with Miami continuing to become a more popular destination worldwide, more snow storms and less political stability in South America we can only expect this market to get even better!
If you have any questions on how to maximize your rental returns, or solidify your bottom line, call us at 305-517-3900.
The data itself comes from a from a great website for rental research called RentCafe.com. They surveyed US Census Data and Commercial Real Estate Intelligence Database YardiMatrix.com.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.