A study from Florida Atlantic University says an average renter needs a six-figure salary to make rent in Miami and live somewhat comfortably. NBC6’s Jamie Guirola reports
If you are renting in Miami and are struggling to make ends meet, you are not alone.
A new study from Florida Atlantic University found that the average renter in the 305 needs to make six figures to pay rent and still live somewhat comfortably.
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And what is driving the prices? Experts say a lack of inventory and a surge of people moving to Miami are two contributing factors to the rising rent prices.
"Sometimes it frustrating when you have a client that has to come up with $20,000 just to move in," said Vice President of Sales for the brokerage company, Compass, Ramon Rodriguez.
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He has seen first-hand how the rental market in South Florida has changed over the last decade.
"It think after COVID and the pandemic [inventory] really took a turn in the Miami real estate market and it just became the sensation -- the hot area -- where people want to come," Rodriguez said.
RENTAL MARKET
According to the study, the average renter in Miami must make at least $100,000 to avoid being classified as rent burdened -- a term used to define those who spend half their salary or more on rent.
Consumers who are considered rent burdened spend 30% or more of their income on rent and struggle to pay for other necessities, the study said.
"When you comprise all these expenses, I want to say easily 30 to 40% will easily go on rent, so then you have 60% to work with but this is why landlords want to make sure that potential tenants can make three times their rent," Rodriguez said.
The study also found that while rent continues to climb, incomes are not keeping up.
Another factor for rent burden is the lack of inventory. As more people continue to move to Miami, there are less and less properties to be rented out.
"When people think of Miami, they think of paradise," Rodriguez said. "I’ve been to Europe, I’ve been everywhere and when I say I'm from Miami its like this is the dream to live. So everyone sees Miami as a paradise, as an oasis. So when we get so much of that, that's what we’re seeing."
Miami-Dade Count has tried to combat the rising rent prices with its emergency rental assistance program, but it paused accepting new applications when the demand exceeded available resources.
And Miami isn't the only city with an overpriced rental market. Right now, Miami is on par with San Francisco, New York, Los Angeles and Boston, the study said.
The largest salary needed to rent in San Jose, California is $131,000.
