Tenants, Not Landlords, Increasingly Control Sunny Isles Beach Rental Market
A review of the latest statistics shows that Sunny Isles Beach now has more than 7 months of rental supply listed during South Florida Winter Buying Season.
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Sunny Isles Beach is moving increasingly into a renters market with more than seven months of supply currently available for lease during the South Florida Winter Buying Season, according to an analysis of statistics compiled by CondoVulturesRealty.com.
In the 12 months of 2023, renters leased an average of nearly 104 units per month for a total of about 1,250 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 Sunny Isles Beach area is in a renters market with a supply of nearly 765 units available for rent. This represents about 7.3 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.
Sunny Isles Beach had been in a landlords market since the midpoint of 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.