Growing Population Of Renters Paying Big Bucks To Live In Miami

Miami has the highest proportion of residents who rent, and they are willing to shell out a big chunk of their income to live in the city, according to a new report.

Miami’s rental population increased 25% between 2006 and 2013, the second highest nationwide. Those moving to Miami are wiling to pay a higher percentage of their income to live here, with 39% of residents paying half their income or more in rent, second highest after New York.

The study says that 65% of the population now rents in Miami, surpassing long-time leader New York City at 64%.

 

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Fredric
6 years ago

Well, yes what you are saying is true. But I think downtown Miami would be better served in the long run by having a somewhat more diverse population. By this I am not speaking of the homeless and destitute types who used to frequent parts of downtown Miami and who have been in the area for decades. I am thinking that having fewer people actually living beyond their means might be helpful, for instance. Some of these will be wealthy and prosperous enough to fit into that category and some will be living in new, reasonably high quality but less expensive housing. More than likely the latter category could be constructed in areas immediately on the periphery of the hot spots, such as west of Brickell and west of I-95 for two examples.

Eventually, most of the premium space in Brickell and in the CBD will be filled in with luxury condos, hotels, luxury rental units and hopefully, a lot more Class A office space, restaurants, retail outlets, entertainment venues and the like. When that day comes it will be to Miami’s benefit if there are more affordable housing options in or immediately adjacent to the downtown and Midtown areas. This is just one of the necessary components for the creation of a true World Class city. The most important component for World Class status is having an adequate or first rate public transit system.

Fredric
6 years ago

Miami needs more affordable rental housing. There are hints of this beginning to come online
but there is not enough of it yet. And affordable or “luxury,” rental housing is the growing trend
in most cities, with Miami leading the way.

Multiple million dollar condos are nice but most of those units will wind up getting leased out as well,
to those who can afford to pay $5000-10,000 per month for living space, obviously a limited market.
The bottom line is that statistic after statistic and research study after research study are showing that
more housing is needed for those who intend to live and work in Miami full-time and not just for super-wealthy foreign investors who are looking for real estate deals as a safe-haven to park their cash.

Anonymous
6 years ago

Plenty of places to live on a budget just a few miles away. Surveys give the metrics; the market tells that people are willing to live beyond their means to live in the hot spots

Gregory
6 years ago

Clearly the chart shows Miami leads the way in affordable housing. There is plenty of affordable housing going up near public transit, are you people blind or just like the whine all day and night.

Fredric
6 years ago

First of all, I am not blind. And I am not whining either.

I’m just expressing the opinion that Miami would be better served in the long
run if a significantly higher percentage of housing development were at least
closer to the “affordable” range than is the case today. And when you say there
is “plenty of affordable housing going up near public transit” that does not automatically
mean that there is enough such housing to adequately serve this market.

Imagine if I were to show you a table twenty feet in length by five feet in width. On this
table and covering every available space are plates of fresh food of all types and every
kind of beverage you can imagine. Well then, that is surely “plenty of food,” right? And then,
500 people show up for dinner. Oops! Now there is a problem… Everything is relative.

The charts above DO NOT show Miami “leading the way” in affordable housing. What they
show is that of the five major cities that are least affordable to moderate income renters,
Miami has the highest percentage of moderate income earners (32%) who can afford the
recently available, so-called affordable rental housing stock. That particular chart was pointing
out that in five cities, less than a third of the moderate income renters can afford the available
housing in that category. What this means is that in all of the other cities in the survey, a higher
percentage of moderate income earners can afford the newly available housing that is geared
to moderate income earners in their respective cities. So in other words, Miami is fifth from the
bottom in that category, NOT leading the way.

I am impressed by a lot of what I see in Miami and there surely has been a lot of progress on many
fronts in recent years, no denying that. But this does not mean that we can rest on our laurels
because that is not how a World Class city is created. So as a result I am not one of those who
says, “Wow! Look at all those construction cranes on the skyline! We’re doing great and anybody
who criticizes anything or who thinks we could do any better is just a whiner.”

Gregory
6 years ago

Well someone is insecure with themselves and can’t read the chart. I wasn’t even directing my comment directly at you, but if the shoe fits wear it.

Anonymous
6 years ago

Can’t read the chart? Please do explain where it shows Miami leading the way in affordable housing. The one and only stat where Miami is leading, according to the article and the chart is in percentage of residents who are renters, at 65% of the population. And that has nothing to do with affordability of rental housing.

And no, World Class cities are not “made by cheap housing.” World Class cities generally do have a well-balanced housing market however and usually not a disproportionately large supply of multimillion dollar condos with absentee owners who are foreign investors looking to protect their flight capital.

Anonymous
6 years ago

So world class cities are made by cheap housing? Interdasting

Pip
6 years ago

The problem with the data is that it looks at income which is not a good indicator of ability to pay for many of Miami’s Residence. Miami is filled with Retirees, Trust fund kids, and non-residents with non-US sources of income. All of these types of people make very little US income but they are not poor and also don’t have just enough to pay the rent. I don’t believe this data proves that there is not enough affordable housing, what it proves is that people are bringing money that has already been earned in other places and now spending it in Miami.