There has been a noticeable slowdown in multifamily
construction across various cities, including Miami, Tampa, and Orlando. This
trend raises important questions about its impact on the rental market,
especially for current and prospective tenants.
Impact on Rental
Prices
The relationship between construction slowdowns and rental
prices is complex. Here are some key points to consider:
Reduced Supply Growth
In a market like Miami, where population growth and
migration trends are strong, the demand for rental housing continues to rise.
With fewer new units being added to the market, the available inventory becomes
tighter, leading to increased competition among renters. This competition often
results in higher rents, as landlords can command more for their limited supply
of units.
Market Equilibrium
While some markets might benefit from a construction
slowdown by achieving a better supply-demand balance, Miami's persistent demand
means that any reduction in new construction is likely to push rents higher. In
other words, the natural equilibrium point shifts, making it more expensive for
renters to find housing.
Segment-Specific Impacts
The multifamily market is not monolithic; it consists of
various segments, including luxury, mid-range, and affordable housing. The
slowdown in construction affects these segments differently. For instance, the
luxury segment, which saw a boom in development in recent years, might
experience a slight cooling off as high-end units become oversupplied.
Conversely, the affordable housing segment, already struggling with supply
constraints, could see more significant rent increases as demand continues to
outstrip supply.
Current Trends in Miami
Data shows that Miami's rental market is already
experiencing upward pressure on prices. With a significant influx of new
residents and limited new construction, renters are facing increasing
competition for available units. As a real estate agent in Miami, I've observed
that properties are leasing faster and often at higher rates than a year ago.
According to recent reports, Miami's rental prices have
risen by approximately 10% over the past year. This trend is expected to
continue if the slowdown in multifamily construction persists.
Summary of Rental Price Changes from 2023 to 2024
To illustrate these trends this summary highlights the
percentage changes in rental prices from 2023 to 2024 for different property types
apartments and single-family homes (SFH) in Coral Gables, Kendall, Pinecrest,
South Miami and Palmetto Bay areas.
These changes reflect the varying
demand and supply dynamics in each area, providing insights into the rental
market trends for Coral Gables, Kendall, Pinecrest, South Miami and Palmetto Bay.
Coral Gables For Rent
- 1BR 1BA: Increased from $2,500 in 2023 to $2,600 in 2024, ↑ 4.00%
- 2BR 2BA: Increased from $3,350 in 2023 to $3,471 in 2024, ↑ 3.61%
- 3BR 2BA: Increased from $4,000 in 2023 to $4,200 in 2024, ↑ 5.00%
- 3BR SFH: Increased from $6,030 in 2023 to $6,725 in 2024, ↑ 11.53%
Kendall For Rent
- 1BR 1BA: Increased from $2,000 in
2023 to $2,100 in 2024, ↑ 5.00%
- 2BR 2BA: Increased from $2,716 in 2023 to $2,770 in 2024, ↑ 1.99%
- 3BR 2BA: Increased from $3,200 in 2023 to $3,300 in 2024, ↑ 3.13%
- 3BR SFH: Increased from $3,500 in 2023 to $3,850 in 2024, ↑ 10.00%

Pinecrest For Rent
- 1BR 1BA: Increased from $2,500 in 2023 to $2,600 in 2024, ↑ 4.00%
- 2BR 2B : Increased from $3,129 in 2023 to $3,471 in 2024, ↑ 10.93%
- 3BR 2B : Increased from $4,500 in 2023 to $4,700 in 2024, ↑ 4.44%
- 3BR SFH: Decreased from $7,925 in 2023 to $6,725 in 2024, ↓ 15.14%
South Miami For Rent
- 1BR 1BA: Decreased from $2,600 in 2023 to $2,500 in 2024, ↓ 3.85%
- 2BR 2BA: Decreased from $3,741 in 2023 to $3,471 in 2024, ↓ 7.22%
- 3BR 2BA: Increased from $3,400 in 2023 to $3,600 in 2024, ↑ 5.88%
- 3BR SFH Increased from $3,500 in 2023 to $3,850 in 2024, ↑ 10.00%
Palmetto Bay For Rent
- 1BR 1BA: Increased from $1,900 in 2023 to $2,000 in 2024, ↑ 5.26%
- 2BR 2BA: Increased from $2,437 in 2023 to $2,770 in 2024, ↑ 13.66%
- 3BR 2BA: Increased from $3,000 in 2023 to $3,200 in 2024, ↑ 6.67%
- 3BR SFH: Increased from $3,500 in 2023 to $3,850 in 2024, ↑ 10.00%
Summary of Rental Price Trends
Across these areas, the data shows varying trends in rental prices. Coral Gables and Pinecrest see notable increases in apartment rents, reflecting strong demand. However, Pinecrest also experienced a significant decrease in single-family home rents, indicating possible market corrections or shifts in preferences.
South Miami presents a unique case where rents decreased, suggesting a different trend in the area, while single-family home rents still increased. This divergence may highlight varying market dynamics within the same neighborhood.
In Kendall, there were moderate increases in both apartment and single-family home rents, showing a stable upward trend in this suburban area.
Palmetto Bay exhibited significant increases in apartment rents, particularly for two-bedroom units, and a notable rise in single-family home rents, reflecting heightened demand.
Overall, single-family home rents generally increased by around 10% in most areas, highlighting a consistent upward trend in demand for homes.
Looking Ahead
For prospective renters, this means it's crucial to stay
informed about market trends and act quickly when a suitable rental becomes
available. For current tenants, understanding these dynamics can help in
negotiating lease renewals and planning for potential rent increases.
Tips for Prospective Renters
1. Act Quickly: In a competitive market, hesitation can
result in losing out on a desirable rental unit. Be prepared to make decisions
swiftly and have all necessary documentation ready.
2. Expand Your Search Area: Consider looking at
neighborhoods slightly outside your preferred area. These locations might offer
more availability and potentially lower rents.
3. Negotiate Wisely: If you're a strong candidate (e.g.,
good credit, stable income), don't be afraid to negotiate terms. Landlords
might be willing to offer concessions to secure a reliable tenant.
Advice for Current Tenants
1. Understand Your Lease: Review your lease agreement to
understand the terms related to rent increases and renewals. Knowledge of these
terms can provide leverage in negotiations.
2. Consider Long-Term Leases: If possible, negotiate a
longer-term lease to lock in current rental rates and avoid frequent increases.
3. Maintain Good Relationships: A positive relationship with
your landlord can be beneficial during negotiations. Reliable, respectful
tenants are often valued, and landlords might be more willing to work with you
on rent adjustments.
Finally, the slowdown in multifamily construction as stated in the blog post, Understanding the Slowdown in the Mami's Multifamily Rental Market, is a significant development that will shape the rental landscape in
Miami and other major cities.
At My Casitas Miami, we are committed to keeping you
informed about these trends and providing the insights you need to make the
best decisions in this evolving market. Whether you're renting, buying, or
investing, we're here to help you every step of the way.
About the Author: Liz Kenneally is a seasoned real estate agent in Miami with extensive experience in the city's dynamic market. Specializing in coveted neighborhoods such as Coral Gables, Dadeland, Continental Park, East Kendall, Palmetto Bay, Pinecrest, South Miami, and The Falls, Liz ensures smooth transactions for her diverse clientele. Fluent in both English and Spanish, she can be contacted at 786-423-3348 or through the EMAIL AGENT form provided alongside this blog.