Last week, we looked at the declining housing inventory in Miami. This week, we’re going to look at another part of the real estate landscape – the booming rental yields right now!
Demand for rental properties in Miami Beach has traditionally been high, with people attracted to the Florida fun and sun for short, medium and long term lets. However, the Miami rental market is super hot right now, due to the declining housing inventory and mortgages being harder to obtain.
According to an analysis of the Southeast Florida MLXchange reported in the Miami Herald, the median price per square foot monthly for a rental property in the first quarter of 2012 was $2.01 in the greater downtown Miami market and $1.21 in the downtown Hollywood and the beach area. Compare this to the first quarter of 2009 when the U.S. economy was on the brink of financial disaster, the median rental price per square foot per month at that time was less than $1.60 in greater downtown Miami, and $1.00 in downtown Hollywood and the beach.
Investors have been watching these movements with interest and the financials are starting to look sufficiently tempting for the banks to start financing large condo projects designated as rentals. For example, the Miami Herald has been reporting that Miami-based Adler Group are joining with Atlanta-based ECI Group to acquire bayfront land in the Shorecrest neighborhood of Miami with plans to build two 20-story condo towers with units for rent.
On a smaller scale, owners of condo units in Miami may also find that this is a great time to rent their place out for a few months at least. Similarly, if you are looking to invest in property in Miami, it is looking like it is a good time and that the likelihood of you finding a tenant for your property to pay good rent is high. It is important to remember that some condo buildings have restrictions on letting out unit, so it is wise to check it out, whether you already own or are looking to buy!
If you are looking for a fabulous property in Miami Beach, contact Kelly who’ll be happy to advise you!