The Florida Rent Trap

Over the past 2 years rent, nationally, has increased an average of 19%. This rate has been dragged up
by the increase in South Florida with Miami rents rising the fastest of any U.S. metro area. Specifically,
Miami-area apartment rents have increased on average 58% over the past 2 years. Yet this is the
average for Miami with some of Miami’s most desirable areas, such as Brickell, Downtown, and
Edgewater seeing rent more then doubling in costs in the past 2 years.

It is believed that the increase in rent costs is, in part, a result of the influx of professionals in the finance
and technology sector relocating from outside of Florida into Miami. As many interested in buying a house can attest to, bidding wars have been commonplace for homebuyers. Sadly, the Wall Street Journal has indicated this has become a reality with renters, as well, with potential tenants sometimes offering up to $500 above the monthly asking rent to secure the property. The situation has gotten so bad that the Wall Street Journal further reported instances of companies relocating to Florida and paying a full-year’s rent for their relocating employees.

What may be the best solution for those getting priced out of the Miami area is to embrace Palm
Beach and Broward County and adapt a commuter lifestyle. With the ability to avoid Miami rush-hour traffic, the Brightline allows those in Ft. Lauderdale and West Palm Beach to easy access to the Miami
metro area which can alleviate concerns regarding renting and allow for homeownership and the
creation of equity in your property. While it is true that housing in Palm Beach County has recently
experience a boom of its own, the $4,000 -$7,000 a month that apartments are renting for in Brickell
would result in a mortgage payment for a sizable property in Palm Beach County. Given the current
interest rates of about 5.3%, a $7,000 mortgage could potentially yield a property valued at $1,250,000.

In addition, Florida continues to upgrade its transportation infrastructure allowing versatility in how one
can get around. If the Brightline is not your cup of tea, interstate 95 is equipped with express lanes that
can assist in avoiding rush hour traffic. While the express lanes are toll lanes, you may register for an
exception that can help you avoid paying for the tolls. Exceptions include, but are not limited to, registered carpools of 3 or more people or the use of an inherently low emission vehicle (such as a hybrid or electric vehicle).

With Palm Beach County and Broward County being such desirable places to live, and with Florida’s
incredible transportation infrastructure, it doesn’t make sense to be paying $7,000 in rent for a place
that was renting for $3,000 in 2020. Enjoy all of the perks of South Florida through homeownership. Reach out to The Sarubbi Group today to discuss how our team can help you enjoy the best of South Florida living.

Basil Sabbak

Contact Basil at Basil@TheSarubbiGroup.com

Last Updated July 06, 2022