After a spike this year, rents in the Miami area are among the highest in the country | Immovable

Do you see a spike in rental prices? You’re not alone.

Two recent studies show the Miami area ranks among the leaders in soaring listing prices — second in the state and eighth nationally — with increases of between 27% and 28% over the same period one year ago.

The national average of $2,495 per month in the first six months of 2022 also reflects a double-digit increase of 13.4%.

According a new report from national real estate brokerage HouseCanary, the Miami-Palm Beach-Fort Lauderdale area ranked eighth in the nation, with actual median rental prices rising from an average of $3,400 to $4,325, an increase by 27.20% in the first six months of 2022.

And, according to a study of 100 cities nationwide by real estate economist Ken H. Johnson and two other researchers, Miami ranked second in the state over the past 12 months with a 28% increase, second only to Fort Myers, where rents jumped 29%.

Sarasota is third on Johnson’s list in Florida with 24%, while rents in Orlando, Tampa and Daytona Beach have climbed 22% over the past 12 months.

“It’s a nationwide phenomenon,” Johnson told WESH News in Orlando. “It’s really amplified in all of the big metros in Florida. … (the state) has seven of the top 10 bounty spots. So that’s not a number or a stat that we want to win in. “

According to the HouseCanary report, home rentals have become more desirable in recent years as consumers have seen their purchase price drop, are unwilling to take on the financial burden of a mortgage, or are attracted to flexibility. of a rental.

Johnson also said the landlords have decided to convert their rentals to Airbnbs in the short term.

Based on HouseCanary’s national rental analytics, the largest annual increase in median monthly listing prices from the first half of 2021 to the first half of 2022 went to three regions: Albany-Schenectady-Troy, NY; Flint, Michigan; and Ogden-Clearfield, Utah; all of which posted increases of 58%.

Outside of the Miami area, only Lakeland-Winter Haven cracked the Top 10, with average rentals climbing 26.43% from $1,740 to $2,200.

When it comes to actual median rent prices for the first half of 2022, California swept the top five spots on the list of most expensive localities. Los Angeles-Long Beach-Anaheim posted the highest median rent, at $4,664, while San Diego-Carlsbad followed at $4,617.

In addition to Miami-Fort Lauderdale-West Palm Beach at $3,972, two other Florida areas ranked in the National Top 10 for highest median rental prices: Cape Coral-Fort Myers at $3,664 and North Port -Sarasota-Bradenton at $3,548.

Looking for lower prices? Peoria, Illinois was down 62.5% from $2,000 to $750; and Toledo, Ohio, fell 56.91% from $3,888 to $1,675 a year ago.

Interestingly, the Cape Coral-Fort Myers area ranked 10th in declines for the first six months of 2022 with a price drop of 6.25%.

The HouseCanary report said people were moving out of big cities. like Chicago, New York and Atlanta, to less expensive areas to live in, like the industrial Midwest. Remote working, sunny skies and the absence of state taxes have attracted movers to Florida.

National averages for the first half of 2022, as reported by HouseCanary analytics:

• 1 bedroom: $1,500 (up 7.14% and on the market 23 days)
• 2 bedrooms: $2,000 (up 11.4% and on the market 22 days)
• 3 bedrooms: $2,295 (up 14.75% and on the market 18 days)
• 4 bedrooms: $2,799 (up 9.76% and on the market 18 days)
• 5 bedrooms: $3,700 (up 5.71% and on the market 23 days)

Johnson said the long-term solution is to build more rental housing. But convincing city leaders and residents who say “not in my neighborhood” would be an even bigger challenge.