With the Nation’s Luxury Rental Market Growing, Miami Is Among Those Leading the Way

Living the high life as renters has become a rapidly growing trend in recent years, with demand for single-family rentals soaring across the country. Many individuals are opting for the affluent lifestyle without the burden of huge mortgage payments or the stress of ownership.

A recent study by Point2, an international real estate search portal, analyzed the rental inventory in the 100 largest U.S. cities to identify those offering the highest shares of luxury single-family houses for rent as of May 28. According to the study, Miami ranks ninth among cities with the highest shares of luxury houses for rent, with 33.4% of all rentals falling into the Tier 1 category, where monthly rental rates exceed $5,000.

Miami also ranks third in Tier 2 ultra-luxury houses for rent category, with nearly 13% of these properties commanding monthly rentals of over $10,000.

The Point2 report highlights another significant trend in the market: the rise of specific build-to-rent housing. According to a RentCafe analysis of Yardi Matrix data, 27,500 houses for rent were completed across America in 2023, representing a 75% year-over-year increase. Currently, nearly 45,500 single-family homes just for rent are under construction nationwide.

“Even before the pandemic, new build-to-rent homes were added at an impressive rate,” analysts at Point2 noted. “However, following the lockdowns and the chaotic beginnings of the work-from-home era, when people became acutely aware of their need for space and privacy, the number of single-family homes for rent nearly doubled each year.”

Choosing a single-family home for rent offers the indoor and outdoor space desired, without the financial and maintenance burdens of homeownership. Historical Census data shows that in 2001, 10.9 million renters lived in single-family homes, accounting for just under 30% of all renters. By 2022, this number increased to 14.3 million single-family renter households, representing about 32.5% of all renters.

In 24 of the 100 largest U.S. cities included in the analysis, between 10% to 74% of all single-family homes for rent available on the market fall into the luxury category, underscoring the significant shift towards high-end rental living. 

Source: islandernews.com