More Buildings, Lower Prices: South Florida Rents Decrease

According to a survey conducted in 260 U.S. cities about the cost of life, cities in South Florida have stopped increasing their monthly apartment rates in August. Due to new apartment units becoming available, renters in South Florida have experienced steadying of prices and probably won’t have to deal with any drastic increases in the near future.

Some South Florida cities have had a slowdown in increases, while others (fewer of them, truth be told) have had a decline of apartment renting prices. Analysts say that this is thanks to many developers entering the market and building additional apartment buildings. Moreover, many operators offer several amenities in order to allure the renters, subsequently creating competition between them.

Throughout the east coast of South Florida, from Miami to West Palm Beach, you can now find different apartments, which provide you with an array of options. For instance, $1,300 a month will give you a one-bedroom apartment with shared common areas. If you’re looking for a complex (both in the suburbs or downtown) with a fitness center and other amenities, two-bedroom flats will cost you $1,800–$2,000. Furthermore, if you’re willing to go the full length, a luxurious three-bedroom unit with an intracoastal view starts at $3,800.

No More Spikes

RentCafé is a national listing organization which provides service by matching renters with their desired apartments in over 250 cities across the United States. Irina Lupa from RentCafé said that there were large spikes in prices several years ago due to demand being higher than supply. Today, apartment hunters in Florida have a much wider selection available to them, according to Lupa.

Lupa also said that the growth and speed of apartment construction in recent years in Florida meant that the prices became more predictable. As a result, Lupa claimed that Floridians wouldn’t experience any major price spikes. A real estate economist at the FAU, Ken Johnson, agreed with Lupa’s words. He said that the reason why so many developers have sped up their building process was because of the number of new people coming in.

City Averages

The 260-city survey covered five South Florida cities. The only one out of the five that hasn’t seen a decline in the month of August is West Palm Beach, which had an increase. However, the survey doesn’t indicate how many bedrooms there are in the apartments they’ve surveyed. Here’s the list of the five cities, together with their price changes:

  • West Palm Beach: a sharp increase in prices, with the average price going up by $24 to $1,477.
  • Hollywood: a dollar decrease to $1,448.
  • Miami: Miami operators shaved $2 off to reach the average price of $1,713.
  • Davie: residents of Davie had the best change of price, with the July’s average dropping by $11 to $1,818.
  • Fort Lauderdale: identically to Miami, FL, it had a $2 drop to $1,713.

Generally speaking, the U.S. average price has seen a 3.3% increase to $1,742, with Manhattan leading the line with $4,772. You’ll find the cheapest apartments in Wichita, Kansas, where the average rental price sits at enviable $565.

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