Came in large numbers: Miami residents are outraged by the invasion of New Yorkers - housing prices are rising because of it

Over the past two years, rentals for apartments in the Miami area have increased by 58%. And in some cases it has doubled compared to last year. The Wall Street Journal.

Natalia Solar moved into a luxurious 49-story tower in Miami's Brickell neighborhood two years ago. She and her roommate paid $3300 a month for a two-bedroom apartment. The building has an Equinox fitness club, a rooftop pool and 3500-hour security. She renewed her contract for another year for $7000. When the lease expired earlier this year, the landlord broke the shocking news that he had doubled the rent to $XNUMX a month.

Miss Solar looked at other apartments in the building. But each two-bedroom apartment available for rent cost between $6000 and $7000. Even with a recent pay raise at the law firm where she works as a paralegal, she couldn't afford the price. She had to move out. “We're being pushed out by people who aren't Miami natives,” she said. “It happens to everyone I know who rents.”

Miami condo rents up 58% in the last two years

This is the fastest rate of price growth of any area in the US. But in Miami's hottest neighborhoods like Brickell, Edgewater and Downtown, rents have risen significantly. For at least a dozen high-end buildings in these areas, owners have asked for rents twice last year's price.

It's all because of the recent migration of a large number of professionals in the field of finance and technology in Miami. They were attracted by year-round warm weather, low taxes, and a more business-friendly environment.

Many of Miami's new residents have high-paying jobs. They are used to high rents in New York, which makes even the highest rents in Miami reasonable.

Sammy Mancini is one of the newcomers in Miami. Her previous apartment was in the East Village of Manhattan, where she lived in a tiny apartment with two friends. In 2021, Mancini quit her old job. Then I found a new one in New York that allowed me to work remotely. And this year, Sammy moved to Miami. “My friends told me how much they pay for their apartments. This is nothing compared to what I paid in New York,” she said.

In New York's East Village, she and two friends squeezed a third bedroom into their apartment by installing a temporary wall in the living room. She shared the $6000 rent and paid nearly $2000 for a bedroom that barely fit her bed.

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Now she lives in an apartment with floor-to-ceiling windows and two terraces by the pool. She rented a luxurious two-room apartment in Brickell for $2600. Although today the same apartments cost more than $4000.

Bidding wars over Miami homes for sale have become a regular occurrence over the past year. Now these competitions are flaring up among tenants

To get an apartment in the most sought-after areas, tenants are offering $200 to $500 on top of the requested monthly rent. And some are even willing to pay a year's rent in advance. Many companies moving to Miami pay their employees rent for the entire year.

Miami apartment owners are aware of the recent influx of wealthy out-of-state tenants. And a lot of them think why not double the asking price and see what happens.