The latest results from the Miami Downtown Development Authority‘s ongoing residential market research are in and the findings may spell good news for renters.
A new report surveying development in and around Miami’s urban core found that nearly 90 percent of the new residential units built this cycle have been absorbed, fueling rising prices for condos and increases in rental rates for apartments:
- Prices and rents are rising: Pricing for existing condo units is up nearly 7% and rents for conventional apartments are up by as much as 10.5% for 1 bedroom units
- Supply is stable, absorption is strong: Fewer than 1,900 units have delivered so far this cycle, with 86% of those units having been absorbed (and another 8% closing in the next 60 days)
- Relief for renters may be on the way: The delivery of 3,000 new units by mid-2016 will mark the largest supply increase in a decade, leading to price stabilization
All of this supports the idea that developers are learning from their past mistakes by building to meet actual market demand, rather than fueling investor speculation.
Here’s a snapshot of the report’s key findings: