Tight Rental Inventory Brings Lower Vacancies & Higher Rents to Fort Lauderdale
The Real Deal is reporting that single-family home rents in the Miami-Fort Lauderdale area increased an average of 7 percent in the fourth quarter of 2016, compared to the same period in 2015. (Condo rents are a different story, especially in Miami with oversupply issues. But as you know housing supply channels driven by cheap capital, unbacked by solid demand flow is one reason why at Restore 818 we don’t play that game.)
RentRange Data Services also reported that the vacancy rate among houses for rent in the Miami-Fort Lauderdale area was 5.3 percent in last year’s fourth quarter.
Miami-Fort Lauderdale is one of six metropolitan areas in Florida where the pace of rent increases for single-family homes rank among the 25 fastest in the nation, according to RentRange. (Some would argue this is unsustainable; but the demand is steadily building with the demographic pressure of Florida becoming the 3rd most populous state. With about 50% of that new influx of people heading to South Florida and limited buildable land squeezed between the Atlantic Ocean and the Everglades, demand from US buyers is driving the prices in Fort Lauderdale.)
The 7 percent increase of home rents last year in the Miami-Fort Lauderdale area ranked 11th among U.S. metro areas. The comparable annual rates of house-rent hikes were 7.7 percent in the Daytona Beach area (10th nationally), 5.8 percent the Tampa-St. Petersburg area (19th nationally), and 5 percent in Lakeland and 4.8 percent in the Orlando area (24th and 25th, respectively, in the nation).
Statewide, the highest fourth-quarter metro vacancy rates among houses for rent were 11.4 percent in Cape Coral-Fort Myers, 8.5 percent in Tampa-St. Petersburg, and 8 percent in Lakeland. The lowest vacancy rates were 5.3 percent in Miami-Fort Lauderdale and 4.6 percent in the Daytona Beach area