By Gay Cororaton, MIAMI REALTORS Chief Economist
Here are our key takeaways in our January 2025 Southeast Florida Rental Market Report that you can download HERE.
- Southeast Florida’s asking rents start 2025 on a upswing.
Asking rents rose 2.6% from one year ago in the Miami Metro area and 5.7% in the Port St. Lucie Metro area. Nationally, the typically asking rent rose 2.7%.
Asking rents rose as vacancy rates tightened. In the Miami Metro area, the multifamily vacancy rate fell slightly to 5.8% in January 2 025 after peaking to 6.2% in August,
- Single-family rental demand remains robust as affordability remains a challenge for most renters.
Demand for single-family rentals remains high as the costs of owning outpace the costs of renting. In Miami-Dade County, the principal payment, interest, taxes, and insurance (PITI) on a single-family home purchased at the median sales with 10% downpayment ($5,616) is $2,116 higher than the median single-family rent ($3,500).
Homestead, Miami Gardens, and Pembroke Pines are some of the areas with many single-family rentals.
- 2025 Rental Outlook: asking rents likely to continue trending up amid elevated mortgage rates and inflation.
In January, the Consumer Price Index rose to 3% one year ago, prompting the Fed to keep the federal funds rate to a range of 4.25% to 4.5% at its January 30-31 meeting. With inflation remaining elevated at over 2%, the imposition of tariffs could keep inflation elevated and delay the Fed’s plan to reduce interest rates.
On the other hand, if unemployment worsens significantly, the Fed may also be induced to cut rates more aggressively.
Higher mortgage rates will continue to keep rental demand robust while higher borrowing and materials costs could lead to a pullback in construction.
