Rent keeps rising
Where will you pay the most to live in South Florida?
In a growing sign that higher rents are tightening their grip in the suburbs, the average prices to lease an apartment in several outlying Broward County cities have climbed above the $1,700 mark, according to a national survey.
In June, the town of Davie jumped by $38 to $1,820 from the previous month, while Miramar checked in at $1,879, Pembroke Pines stood at $1,773 and Coral Springs was at $1,725, according to a 260-city survey conducted by RentCafe found.
All of those locations were more expensive than Miami, where the average was $1,713 last month. Fort Lauderdale continued as the state’s most expensive rental market at $1,945.
“This can be seen as a sure sign of smaller markets feeling the effect of renters’ migration within the state,” said Alexandra Ciuntu, author of the study. “Renters tend to prefer relocating to slightly more affordable inland areas, in this case, away from coastal cities perceived as costlier by comparison.”
She said this could explain why the average monthly rent in cities like Fort Lauderdale did not “suffer through major changes in the first months of 2019,” while “emerging renter alternatives like Pembroke Pines, Davie and Miramar” witnessed greater increases since the beginning of the year.
The survey placed the national monthly average at $1,465 in June. Overall, the average U.S. rent increased by 3.2 percent or $45 a month year over year in June 2019, RentCafe reported.
Several South Florida cities came in below the national average for June. They included:
■ West Palm Beach, which averaged $1,460.
■ Hollywood, $1,447.
■ Pompano Beach, $1,404.
■ Hialeah, $1,366.
Among mid-sized cities surveyed across the country, rents were the highest in Florida and California, RentCafe said.
In both Broward and Palm Beach counties, recently constructed apartment complexes in small suburban towns and cities are commanding prices ranging from $1,400 for one-bedroom, 850-squarefoot spaces to close to $2,500 for two-bedroom apartments with more than 1,100 square feet. They sport amenities such as pools, fitness centers and places to socialize.
In downtown areas, prices are higher, with many complexes and high rises bearing the luxury label. In an attempt to stimulate more traffic, many managements are offering free rent incentives to sign leasing agreements.
“We are at the peak of the housing cycle right now,” said Ken Johnson, real estate economist at Florida Atlantic University. “Rentals will slow down. A lot of this affordable housing you can see it coming.”
But he warned that “we’re not going back to 2012. … Prices are not going to fall that much.”
In large U.S. cities, RentCafe said, prices in places like Manhattan are lower when compared with the beginning of the year. But they’re “still among the priciest.” If would-be renters want to live in Manhattan, they’ll face an average of $4,197 a month, “the most expensive in the country.”