MIAMI, Fla. – Rental rates across the country are expected to reach high costs in 2023. A long-term trend of elevated growth could impact people and families struggling to find affordable places to live.
Median rent in the nation’s 50 largest cities, including Miami, fell by $10 a month in November. But rent price growth “will likely remain elevated well into 2023,” said Realtor.com chief economist Danielle Hale. “My expectation is that rent growth will slow, but we may not see it go back to what was typical before the (coronavirus) pandemic."
Year-over-year rental price growth rose from 5.8 percent to 8.4 from March to September of 2022. It remained steady until November. A Moody’s Analytics report predicts a rent growth rate of 5 to 8 percent in the first quarter of 2023, and a 4 to 9 percent increase late in the year.
The demand to rent homes, apartments and condos will remain strong due to rise in mortgage rates and homeownership costs which have doubled since January 2022.
The chronic shortage of affordable housing has been impacting MiamiDade County for years. Officials called it the epicenter of the crisis in 2022.
According to RealtyHop’s Housing Affordability Index, Miami is the second least affordable place to live in the U.S., more expensive than Los Angeles, and just slightly cheaper than New York City.
Miami’s average rent is $1,998 a month in neighborhoods populated by minorities whose income is just below the poverty threshold. The average rate for apartments, homes and condos in Brickell, the Miami Design District and other affluent neighborhoods is $2,856 per month. One condo in Miami is advertising a two-bedroom rental rate of $3,158.
Realizing many families are struggling to remain in their homes, Miami-Dade Mayor Daniella Levin Cava recently extended the county’s Emergency Rental Assistance Program (ERAP). ERAP can help renters with issues such as past due rent, utility payments, some relocation assistance, and increases in rent of up to 30 percent for a period of 3 months.
Residents earning up to 140 percent of the median area income are eligible for ERAP. A single person earning less than $95,620, couples making less than $109,200, families of three earning less than $122,920, and families of four earning less than $136,500 can qualify for assistance.
“For Miami-Dade to thrive, our residents must be able to afford to live here,” said Cava. “Our county’s distribution of ERAP funds was so successful, we were able to apply for and receive more funds from the federal government to expand the program and help more renters.
“This new expansion will allow more financially struggling residents to tap into life saving funds to help them stay in their homes,” she said. “That, in concert with our Building Blocks program and HOMES plan, will create a more affordable Miami-Dade for all.”
Cava made expansion of ERAP benefits a key component of her HOMES plan that was included in the county’s recently approved budget by committing an additional $8 million in general funds from the county.
“We are building upon an already successful ERAP plan that has distributed more than $138 million,” said Michael Liu, director, Miami-Dade Public Housing and Community Development, “and helped over 21,000 families stay in their homes since the start of the pandemic.
“By increasing the number of people that qualify for ERAP, more working professionals such as teachers, first responders, nurses and other essential workers can get assistance to cover rent costs in this difficult real estate market.”
Residents seeking more information are encouraged to visit: miamidade.gov/global/housing/emergency-rental-assistance-program.page
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