Year-Over-Year Rent Price Analysis

The subject of today’s snapshot is for Downtown, Miami, Florida. Based on our analysis, Miami’s year-over-year average rents increased across all bedroom types.

Our standard neighborhood analysis uses a 12-month “LookBack” to establish an average baseline rent. The results from the 12-month LookBack analysis are presented in the tables below for Miami 1–2 bedroom rents from February 1, 2021 – February 1, 2022:

As the table shows, 1BR units increased by 39% from last year or $858 more, and the 2BR units increased by 41% from last year or $325 more. As demonstrated by the table, year-over-year performance for all selected bedroom types increased in rent prices from last year.

Market Activity: Miami, Florida

Are you interested in investing in Miami? Location is an important factor to consider when finding a profitable market for a rental property. The key characteristics of a good location include a strong economy, a growing labor force, and high rental demand. Below are some quick facts about the Miami rental market that can help you with your investment analysis and overall decision.

• Price-to-Rent Ratio
  • Avg 2BR House Price: $613,700 (According to Redfin)
  • Avg Annual 2BR Rent: $51,864 ($4,322 x 12 months)
    • Price-to-Rent Ratio: 12
• Population Growth:
  • Miami’s population grew by 8% over the past decade from 2010-2020 (According to US Census)
• Major Companies & Institutions: Akerman, Greenberg Traurig, Holland & Knight, NCL Corporation Ltd., TracFone Wireless, Royal Caribbean Cruises, Southern Wine & Spirits, Carnival Cruise Line, Brightstar, Fortune International Realty, Ryder System, Neff Rental
• Employment Growth:
  • 7.9% (According to US Bureau of Labor Statistic )

About Rentometer

Rentometer is the #1 tool for comparing residential rent rates anywhere in the U.S. To succeed as a real estate investor, you need solid, current market intelligence to help you set the right rent rates in Miami. Understanding local rents (and the factors that drive them) can help reduce investment risk, increase occupancy and improve your cash flow – and income. With Rentometer, you have local, current rents available right at your fingertips.

This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.