Median Rent Prices in Miami By Neighborhood Fall 2016

Rents in Miami continue to hold stable according to Zumper's fall 2016 rental housing report. The report reflects median rents for 1-bedroom units across 60 Miami neighborhoods. Data shows that median rents are down a bit in Edgewater, Brickell and West Avenue on Miami Beach. Essex Village and Flagler have the fastest growing rents and are both up 11% since Q2 2016. Fisher Island has the highest median rent for a 1-bedroom unit at $5,100 per month. With such a glut of new inventory hitting the market it is imperative for investors to stay current on rental prices across various neighbors over the next several quarters.   

3 Most Expensive Neighborhoods:

1. Fisher Island - $5,100

2. Park West - $2,500

3. Village of Key Biscayne - $2,350

3 Cheapest Neighborhoods:

1. Brownsville - $660

2. Pinewood Park - $880

3. Liberty City/ West Little River/ Gladeview - $900

Median Rent Prices Miami Fall 2016

Miami Ranked 10th Most Expensive City in World For Average Monthly Rent

Top Ten World Cities Average Monthly Rent

Commercial real estate firm CBRE has published that Miami is the 10th ranked city when it comes to world cities with the most expensive rent. Miami's average monthly rent was $1,868 per month, a number that is rapidly increasing as Miami is also 7th in the world when it comes to % increase in average monthly rental rate. The Next Miami has reported investors in Miami see an overall yield of 2.6%. Miami trailed other U.S. markets of Los Angeles, which led at $2,544 per month, and New York at $2,422 per month. Miami has begun to supplant itself as one of the leading major cities in the U.S. in terms of real estate and the market continues to look strong despite continued uncertainty. 

Shortage Reported in Miami Construction Worker Supply

Miami New Construction Spending Shortage Worker Supply

Miami contractors are having a hard time finding available construction workers to hire for their projects. There are currently over 7,499 residential units under construction in Downtown Miami and Miami new construction was up 18% from July 2015 to July 2016. 14,700 units are under construction in South Florida with over 30,000 in the planning and pre-sales phase. The shortage in the supply of workers has led to an rise in pay as contractors scramble to attract new workers. The state of Florida added over 26,400 construction jobs, up 6% over last year the 2nd rank in the U.S., behind only California. Groundbreakings in Miami were up 83% over 2015 to about $576 million. 

Miami Developers & Agents Look to China to Spur Sales

Top Chinese real estate agents tour Miami's hottest new developments. Photo via MiamiHerald.com

Top Chinese real estate agents tour Miami's hottest new developments. Photo via MiamiHerald.com

As the Miami real estate market looks for a more diversified group of buyers, agents and developers are focusing on China as a new revenue stream where investment has historically been weak. Factors effecting this are Miami's new emergence on the world stage as a world class city to invest in, but also due to proximity and the fact that there are no direct flights between Miami and China. The Miami Herald reported in August that 20 of the top Chinese real estate brokers came to Miami to tour some of the top new projects. They are attracted by the affordability of the properties and value compared to other U.S. markets.

Only 2% of the home sales to international buyers in South Florida last year were to Chinese buyers. Despite this, during that same period Chinese investors spent $27.3 billion across other U.S. markets. Chinese investment has played a major roll in the continuously changing landscapes of New York and San Francisco real estate. China City Construction Co., a Chinese government owned developer, has purchased over $110 million of land in Brickell and Miami Beach. Additionally, Cathay Pacific Airways Ltd. is looking into a larger plane for long-haul flights between Hong Kong and Miami. Officials at Miami International Airport said that the flight could become a reality in the next 2 years.