Recently, the strength of the Miami rentals market has become apparent based on several indicators. Many people have taken the opportunity to purchase distressed properties in order to provide housing for Miami’s permanent residents and its visitors. Miami has all types of properties, but it appears that the multi-family developmet is more popular than most.
An investigation by the CBRE has shown that the numbers of rental properties have increased by 3.4 percent. This means that rents have been rising and are currently higher than they were in the years 2006 and 2008. The good news is that the CBRE is convinced that rents will continue to rise as the year progresses.
Why is the demand for rental properties rising in Miami?
Miami rentals have become much more popular lately because the economy has been in a recession. Because of this, several homeowners needed to find other living accommodations because they lost their homes to either a short sale or bank foreclosure. The short sale and foreclosure caused a lot of people’s credit scores to go down, so they cannot qualify for a new mortgage to purchase new houses. These people found the solution to be renting.
The fact that Miami is a highly popular tourist destination is another reason that Miami luxury apartments are in such high demand. Both United States citizens and people from abroad make plans to visit Miami and the surrounding areas throughout every year, and they are in constant need of the area’s rentals. These tourists seek all types of rentals including those that can accommodate a large family in a multi-family developmet. Other visitors are in search of Miami luxury apartments that overlook the ocean.
The fact that multi-family properties are engendering more and more interest has not escaped the notice of developers. The Miami-Dade area presents extraordinary opportunities for rental properties of this kind as the area’s rental properties are largely fully occupied. A total of 62 properties are being developed in this area, and this means that buyers or renters will have 18,000 more units to choose from in the near future. As there are currently only 62 of these properties in development, popular wisdom believes that the numbers of these developments will continue to grow.
U.S. citizens seeking residential property to invest in as well as people outside of the country will be seeking real estate ventures in the months to come. The present time is excellent for this as the supply is increasing but the time will come when the demand will exceed the existing numbers of these properties.
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