Rental Market Roller Coaster

While the article mainly discusses the luxury sector of the Miami rental market, it touches on the median one-bedroom rents falling month over month by 2%, while nationally it grew 0.1% for the same period. There are 30,000 new apartment units under construction in Miami, largely in the luxury sector. This is in addition to the already 70,000 luxury apartments in Miami - up 25% from the inventory in 2020 (or 50% when all new apartments are delivered over the course of the coming years). 

The question remains if population trends will help absorb the new supply hitting the market over the next 24 months. Will the population trends continue, and rapidly absorb the new inventory, or will this put downward pressure on the market? What impact do you think this flooding of apartments will have on the South Florida rental market, luxury or otherwise?

The article from The Wall Street Journal discusses the cooling of Miami's luxury rental market, and rental market in general, which has experienced a significant surge in prices during the COVID-19 pandemic but is now showing signs of slowing down. Here is an analysis of the key points in the article:




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