By Gay Cororaton, MIAMI REALTORS Chief Economist
Asking rents for single-family homes have held up more firmly than multifamily asking rents and single-family listings now account for a higher share of total rental listings, according to MIAMI MLS data and non-MLS data from Rental Beast, a platform with over 10 million rental listings nationwide.
In June, the median single-family asking rent rose from the prior month in Miami-Dade (+2.7%) and Broward (+2.9%) and was unchanged in Palm Beach and St. Lucie but declined in Martin (-6.6%).
Of about 22,000 listings, single-family listings accounted for 36% compared to just 21% in January 2019.
In 33 areas with at least five active listings, 18 had stable or higher median single-family asking rents from one year ago while only eight had stable or higher median asking multifamily asking rents compared to one year ago.
The demand for single-family homes indicates a desire for the amenities and lifestyle associated with homeownership. However, elevated mortgage rates that continue to hover at 7% and sustained price appreciation due to supply constraints have raised the cost of homeownership relative to renting, especially felt by households that earn less than $100,000.
Multifamily asking rents decline as deliveries outpace absorption
On the other hand, the median multifamily asking rents decreased from the prior month in the counties of Miami-Dade (-0.9%), Palm Beach (-0.6%), Martin (-1.1%), and St. Lucie (-2.5%) and was flat in Broward (0%).
From one year ago, the median asking rents were down in Miami-Dade (-7.3%), Broward (-4.3%), Palm Beach (-2.0%), and St. Lucie (-2.5%) but up in Martin (+4.5%). By bedroom count, the median asking rents in 1-bedroom units declined in all counties except for Martin County. However, median asking rents for 3-bedroom units rose in Broward, Palm Beach, and Martin, likely associated with a demand for units with more bedrooms from households who can only afford to rent at this time given affordability conditions.
Asking rents have declined amid rising vacancy rates as new deliveries outpaced net absorption. The vacancy rate on apartment buildings of at least 10 units rose in Miami-Dade to 6.0% in June 2024 (5.7% in June 2023), in Broward to 6.0% (5.1% in June 2023), and in Palm Beach to 6.3% (6.1% in June 2023), according to ApartmentList.com.
Among buildings with more than 50 units, net absorption totaled 6,799 units while 9,140 units were delivered in the Miami-Dade, Fort Lauderderale, and Palm Beach market areas during the first half of 2024, according to Cushman and Wakefield.
Download the June 2024 Residential Rental Market Report below.
