Miami and Orlando continue to storm ahead of other metro areas in America’s major cities with the highest year-over-year increases in single-family rental prices.
CoreLogic’s Single-Family Rent Index (SFRI) tracks the changes in rent prices across the US each month. Their most recent report, which analysed 20 major metro areas, revealed that Florida metros saw the highest price growth in single-family rents in September.
Single-family rent prices across the nation increased 10.2% year-over-year. Despite slowing slightly, down from 13.9% in April 2022, the growth rate remained more than double what it was before the pandemic.
The data from CoreLogic also signalled a return to the pre-pandemic seasonal pattern in rent price growth—and, in other words, a return to “normality”.
Florida leads the way
Miami saw the highest growth in single-family rental prices out of all 20 metro areas, with the average rent rising by 20.1% year-on-year. Orlando came in close behind with a gain of 18.3%.
These two Floridian cities not only topped the table but also registered a significantly higher growth rate than other metro areas. Boston had the third-highest rent price increase at 10.6%, which is almost half that of both Miami and Orlando.
Annual rent price growth in Miami decelerated compared to last September when it exceeded 25 per cent. Orlando, on the other hand, beat last year’s price growth by more than 5 per cent.
Rent price growth: In context
The pandemic saw a retreat to lower-density areas and detached single-family homes. As a result, rent price growth was less dramatic in many high-density areas during this period.
This very quickly changed at the start of 2022, as people began to move back to major cities for work, study, and a more active social life. Rental properties in high-density areas became highly sought after, sending average asking rents soaring.
Widespread migration back to the cities also saw increased demand for attached rentals. Attached single-family rental prices increased by 10.7% year-on-year in September compared to a rise of 9.3% for detached rentals.
Real estate investors flock to Florida
Apartments and condos in Florida’s major cities continue to be some of the most sought-after properties in the US. For this reason, investors are flooding into the sunshine state, keen to capitalise on booming rental markets in Miami, Orlando—and also on Florida’s Gulf Coast.
Florida is also experiencing a population boom as retirees, students, young professionals, and remote workers continue to land on Florida as a desirable place to live and work.
With this, all signs point towards sustained price growth in the years to come. If you’re interested in acquiring a Floridian rental property, get in touch to discuss current investment opportunities.
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Miami and Orlando continue to storm ahead of other metro areas in America’s major cities with the highest year-over-year increases in single-family rental prices. Article by @benoitproperty https://ctt.ac/z79j1+