WRE News: Miami’s Luxury Rental Market Cools as Prices Drop & Supply Surges

Miami, FL – October 15, 2023 – The Miami luxury rental market, once on a dizzying rise, is now experiencing a significant slowdown. The influx of people to Miami during the pandemic drove up rents and real-estate values, but now the market is cooling faster than other cities, with median rents dropping. The supply of luxury apartments has surged, with thousands of units under construction, causing higher vacancy rates. Economic factors, like high interest rates and inflation, are also affecting the market. Concessions and incentives, such as reduced security deposits and free rent, are now being offered to attract tenants. However, superluxury rentals for very large, single-family homes are holding up better, albeit with more negotiation on terms. The market is also experiencing a seasonal ebb and flow, with hopes that demand will pick up in mid-October.