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Downtown Miami Renters Help Condo Market
According to yesterday's South Florida Business Journal:
Condominium rental programs are transforming urban Miami, attracting more young professionals and making a dent in the oversupply of housing from the condo boom.
While some buildings remain mostly empty, the rental programs offer young professionals with mid-level incomes the opportunity to live in plush buildings with amenities. The programs don’t come without problems, but local real estate interests are hoping they are the leading edge of a recovery in urban cores.
Some renters, like Alisha Marks and Ben Tischler, moved from pricier apartments in South Beach. Their 1,400-square-foot apartment in Midblock at Midtown Miami has a sprawling balcony with a view of Biscayne Bay and the downtown skyline. The only sign of the housing crisis is an unfinished ceiling.
“I’m very happy with it,” said Marks, director at Schwartz Media Strategies in Coconut Grove. “We couldn’t afford this much in South Beach, and it’s new and has a lot to offer.”
Condominium rental programs are transforming urban Miami, attracting more young professionals and making a dent in the oversupply of housing from the condo boom.
While some buildings remain mostly empty, the rental programs offer young professionals with mid-level incomes the opportunity to live in plush buildings with amenities. The programs don’t come without problems, but local real estate interests are hoping they are the leading edge of a recovery in urban cores.
Some renters, like Alisha Marks and Ben Tischler, moved from pricier apartments in South Beach. Their 1,400-square-foot apartment in Midblock at Midtown Miami has a sprawling balcony with a view of Biscayne Bay and the downtown skyline. The only sign of the housing crisis is an unfinished ceiling.
“I’m very happy with it,” said Marks, director at Schwartz Media Strategies in Coconut Grove. “We couldn’t afford this much in South Beach, and it’s new and has a lot to offer.”
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Replies to This Discussion
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Permalink Reply by Alex (MUL) on -
This is definitely true. I hear that 50 Biscayne is 80-90% occupied, but mostly by renters.
Renting at a luxury condo in Downtown or Brickell right now is a real bargain. The owner or the developer ends up having to pay the taxes and maintenance fees and the tenant only has to worry about a flat monthly fee.
This rental demand is definitely dampening the pain for owners, but there is still a huge disconnect in property value vs. rental rates. In many cases, the owners' carrying cost is almost double of what they can rent their unit for. How long will they hold on to these units in a negative cash flow position? Rental rates will eventually go up, but how long will that take? That's the million dollar question.
Do you have the link from the South Florida Business Journal?
Here's another good post:
http://www.miamiurbanlife.com/forum/topics/1256554:Topic:37387
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