Rental Rate Arbitrage? Aventura Among Strongest Leasing Markets In Coastal Miami-Dade County
A review of the latest statistics shows that landlords in the Aventura rental market are asking about $2.89 per square foot monthly on a median basis.
We have crunched the statistics for the Year 2023 and plan on publishing a series of of reports during the next two weeks looking at the winners and losers in the secondary Miami-Dade County markets of Aventura, North Miami, Miami’s Upper East Side, North Bay Village, Miami’s Little Havana, Coral Gables and Miami’s Coconut Grove. If you want the reports emailed to you, just sign up for the Miami Condo Market Intelligence Report With Peter Zalewski™ newsletter at: PeterZalewski.substack.com
Aventura - the mainland suburb bordering South Florida’s Broward County - is one of the strongest coastal rental markets in Miami-Dade County, according to an analysis of statistics compiled by CondoVulturesRealty.com.
Aventura - which features an increasing amount of newer product compared to the neighboring Broward County city of Hallandale Beach to the immediate north - is in a landlords market thanks, in part, to its “moderately” priced units.
Aventura is also benefitting from its proximity - about a one-mile causeway trip away - to the barrier island city of Sunny Isles Beach where the monthly rental rates are asking about 28 percent more on a median price per square foot basis.
In the 12 months of 2023, renters leased an average of nearly 135 units per month for a total of more than 1,615 units between January and December.
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Based on the current active listings in the Multiple Listing Service – a database used by Realtors to market condos and rentals – the Aventura market is in a landlords market with a supply of less than 640 available for rent. This represents about 4.7 months of supply.
Generally, six months of supply is considered equilibrium for the housing market. Less months indicates a sellers market and more months points to a buyers market from a negotiating perspective.
Aventura has been in a landlords market since the pandemic years when a plethora of work-from-home employees relocated to South Florida from places such as California, Illinois and New York. The influx of transplants to South Florida leased up much of the available rental supply, which increased prices and triggered new development.
Rising property values from strong demand, skyrocketing insurance prices following the Surfside condo collapse disaster and high interest rates from a series of hikes by the Federal Reserve brought the South Florida housing market to a standstill in the second half of 2023.
On the rental front, “For Lease” signs are popping up on street posts and in road medians around South Florida for the first time in a couple of years.
Industry watchers are at odds as to the direction of the South Florida housing market in 2024.
Bullish investors are predicting rental demand will continue to strengthen despite more than 50,000 new units being planned, under construction or recently completed in South Florida.
Bearish investors contend that rental prices are too high and likely to collapse in the months ahead as the new supply comes on the market.