By Mike S Payton, Contributing Reporter
DELRAY BEACH, FLORIDA – According to a new report from Apartment List, Delray Beach rents have increased 1.4 percent over the past month, and are up slightly by 1.9 percent in comparison to the same time last year. However local realtors see a surge in demand and price for the single family home rentals.
The Apartment List report shows that of the largest ten cities they have data for in the Miami metro, six of them have seen prices rise. Miami Beach has the most expensive rents in the Miami metro, with a two-bedroom median of $2,282; the city has also seen rent growth of eight percent over the past year, the fastest in the metro.
Over the past year, Miami proper has seen the biggest rent drop in the metro, with a decline of 3.8 percent. Median two-bedrooms there cost $1,590, while one-bedrooms go for $1,217.
Igor Popov, Chief Economist for Apartment List explained why Delray Beach (and surrounding cities Boca Raton and Boynton Beach) are so much more expensive than other cities in Miami Metro.
“Generally speaking, we see that it’s common that core cities in a metro tend to have lower rents than surrounding cities because of the differences in both incomes and housing stock,” Popov said.
Adding, “In particular, Miami proper has greater housing density, so the median home or apartment will generally be smaller, and thus cheaper. I think this past year, with the pandemic putting a greater premium on space, this factor became even more important.”
The Apartment List data shows that currently Fort Lauderdale has the least expensive rents in the Miami metro, with a two-bedroom median of $1,327; rents were down 2.7 percent over the past year but remained flat month-over-month.
Median rents in Delray Beach stand at $1,443 for a one-bedroom apartment and $1,828 for a two-bedroom. This is the fifth straight month that the city has seen rent increases after a decline in July, with year-over-year rent growth that leads the state average of 0.4 percent, as well as the national average of -1.5 percent.
Jeremy Olsher of Compass Delray Beach real estate firm shared, “Delray Beach rental rates this season have been harder to come by for certain types of properties. Single family homes with pools have exploded in price and lack of availability.”
Olsher sees a surge in demand across rental duration for the single family homes. “This is for an annual basis, seasonal basis, and monthly basis (if you can even find one for a month),” he said. “The rates have gone up 15-20 percent for single family pool homes (rental prices and sale prices), since August 2020.”
Adding, “We’ve seen the highest rental prices ever for some particular pool homes in many different neighborhoods in Delray Beach (East and West- basically all over).” However he adds, “Condo price points for rentals has been pretty stable.”
Olsher explains there is inventory on the market for annual rentals, more so than other years at this time, however the larger single family properties are being swallowed up as the demand for more space is real.
“With so many families relocating from all over the country, especially New York, New Jersey, Boston, Chicago, Connecticut, and California – the higher priced rental properties have been absorbed at an alarming rate,” he said.
Adding, “Delray Beach has officially become a known destination all over the country, and the influx of new renters and buyers is changing the dynamic of the city, more so this year than in previous years. ”