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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%
oral Gables Rents
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%
Kendall Rents for 2023 and 2024
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%
Pinecrest Rents for 2023 and 2024
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%
South Miami  For Rent
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%
Palmetto Bay Rents 2023 and 2024

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.

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Efficient, Effective, and Ethical! Working with Liz Kenneally was an absolute pleasure. Her efficient and effective approach to real estate made the entire process seamless and stress-free. From the moment we met Liz, we knew we were in good hands. She took the time to listen to our needs and preferences, ensuring that we found the perfect home in South Miami. Liz's commitment to ethical practices and transparency gave us peace of mind throughout the transaction. We highly recommend Liz to anyone looking for a trustworthy and reliable realtor in Miami.

 

~ Michael and Jennifer D.

I hired Liz Kenneally to lease out my apartment, and within just 1-2 weeks, she secured long-term tenants who have been a great to work with for the past three years. Her efficiency, professionalism, and warm demeanor made the entire process seamless. Liz understood my needs and executed flawlessly. I couldn't be happier with the outcome. I wholeheartedly recommend Liz!

 

~ Sofia I.

Finding office space for my company was made effortless thanks to Liz Kenneally's exceptional service. Referred to her by a trusted source, I quickly understood why she comes highly recommended. Liz guided us through every step with professionalism and expertise, ensuring we secured the perfect space to meet our needs. The office space exceeded my expectations, boasting a prime location, generous square footage, and excellent amenities. Liz's attention to detail facilitated a seamless transition into our new workspace. Her responsiveness and proactive communication made the leasing process a breeze. Working with Liz Kenneally was a pleasure, and I wholeheartedly recommend her to anyone in search of commercial real estate. Five stars all around!

 

~ Paul M.

Professionalism Personified! Liz Kenneally is the epitome of professionalism. Her attention to detail, proactive communication, and tireless work ethic set her apart from other realtors. Liz guided us through the process of buying our dream home in Coral Gables with ease and confidence. She was always one step ahead, anticipating our needs and addressing any issues promptly. Liz's commitment to excellence and integrity made us feel confident and reassured throughout the entire transaction. We cannot recommend Liz highly enough!

 

~ James and Amanda R.

Liz Kenneally proved to be an exceptional real estate agent. Her expertise in Dadeland area homes, our preferred locale, was truly impressive. Liz's dedication to understanding our needs, preferences, and budget constraints was evident throughout our interactions. She tirelessly worked to find us the perfect home, keeping us updated and promptly addressing all our questions. Liz made the entire process enjoyable, turning house hunting into an adventure. I enthusiastically endorse her to anyone in the market to buy or sell. Thank you, Liz, for your outstanding service!

 

~ Camila I.

5 Stars for Responsiveness, Negotiation skills, Professionalism and communication, Market expertise, Was on point at every turn, from offer to closing.

 

~ Jordi B

Liz went above and beyond to market our property effectively, attracting a flood of interested buyers. Her attention to detail and commitment to showcasing our home in the best possible light truly paid off. We couldn't believe it when offers started pouring in, and even more so when the final sale price exceeded our initial expectations! It was the highest sold price in the community! Liz was responsive, proactive, and always had our best interests at heart. Her negotiation skills were impeccable, ensuring that we got the best possible deal for our property.

 

~ Willy and Gloria P.

Liz was the listing agent for a Miami property I called on and made an appointment to see . That's how it all started.I wasn't working with any agent and I told Liz I didn't want to commit to anyone. She stated she understood, nevertheless, she was relentless in keeping in touch with me. Finally, in one of her phone calls, Liz asked me if she was working hard to get my business ? I said yes, of course. Then she stated, "Imagine, what I am capable of doing in finding and negotiating for you in a tough and competitive Miami market?". That clinched it !

 

~ Arile R.

I want to thank this wonderful Lady that stuck with me until I found just the right place. I am very satisfied and you will always have a friend here. Thank you for everything Liz, you're the best.

 

~ Manny

We trusted her strategy and ended up buying the property that we were initially turned down on. You can say Liz turned that No into a Yes for less money! She is relentless. Thank you, Liz, you are a hard worker, trustworthy, on top of your game and simply a pleasure to team up with you

 

~ Alex Y.

As a business man, one of the things that impressed me about Liz is is her negotiation skills, patience and cool under pressure. She looks for a win-win even though at times we were just being one sided. Liz reminded us it's a sellers' market with properties selling quickly at or little above asking price in the area we wanted to buy.Whatever we weren't familiar with, Liz simplified it so we felt comfortable and understood the transaction.

 

~ Vincent S.

"...One of her best qualities is her ability to stand back, listen to your needs, present you all the alternatives and let you make the original decisions. She is not assertive with her opinion but when she says you better listen because it will be in your own best interest..."

 

~ Ioannis L.

I had a great experience with Liz in the sale and purchase of my new home. She was always available to answer questions with great confidence and knowledge. I consider her a personal friend since we met, through the process of buying this home. Highly recommend her to anyone looking to sell or buy.

 

~ Maria D

Ms Liz Keneally was a angel sent. I was going through personal hardship. And having a hard time not only selling The property but with the result of impending foreclosure. Which at the time was a very difficult time in my life. And she came along. And got a contract within a week. And I have nothing but gratitude towards her and her team. That treated me and my children like family.

 

~ Xenia L.

Liz has been a wonderful real estate agent for us. She is an excellent communicator, and communicates in a very timely manner. Liz provided easy to understand comparisons when we had multiple offers for the property that we were selling. Liz makes sure that all the details are taken care of, and most importantly perseveres in resolving the many issues that arise in a real estate transaction. We have been extremely happy with the work that Liz has done for us. We would highly recommend her for anyone who is seeking to sell or buy property.

 

~ Gary N

As a first time home buyer, I was nervous and worried about being taken advantage of. Liz calmed my nerves and guided me through the process. She was easy to communicate with and took the time to educate me.There were times, we had to negotiate and Liz always made sure to keep the deal alive, while protecting my interests. I have only wonderful things to say about her and would work with her again.

 

~ Sarah S.

Liz was professional from the exploratory stages of home buying to its completion. As a first-time buyer, I was looking into foreclosures. I did not expect the unexpected to say the least. From negotiations to paperwork, I am truly grateful for Liz's knowledge and skills. She guided me through the process and stood by my side when delays arose and frustrations even larger. Her calmness and verbal prowess ultimately helped me secure my very first home! Thank you, Liz!

 

~ Hennifer M

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