By Mike S Payton, Contributing Reporter
DELRAY BEACH, FLORIDA – Delray Beach rents declined over the past month, according to the Apartment List’s June 2020 Delray Beach Rent Report. This is the third straight month that the city has seen rent decreases after an increase in February.
The report says Delray Beach rents have declined one percent over the past month, but have increased slightly by 1.4 percent in comparison to the same time last year. Currently, median rents in Delray Beach stand at $1,197 for a one-bedroom apartment and $1,517 for a two-bedroom.
Jeremy Olsher of Compass Delray Beach real estate firm explained, “Delray Beach rental prices have been rising at a reasonable rate in recent years. The demand to live in Delray Beach has increased greatly as the city continues to grow, and that is the main reason that the rising rental prices make sense.”
Adding, “There have been a bunch of builders who built apartments to rent in the last eight years so there is more rental inventory all over the city. […] The privately owned properties have gone up in value, so the rental prices have also increased. There is direct correlation.”
The Apartment List report shows this is the third straight month that the city has seen rent decreases after an increase in February. Delray Beach’s year-over-year rent growth however leads the state average of 0.6 percent, as well as the national average of 0.8 percent.
Throughout the past year, rent increases have been occurring not just in the city of Delray Beach, but across the entire South Florida region. Of the largest ten cities that we have data for in the South Florida region, eight of them have seen prices rise.
Olsher knows the market in Delray and shares, “One bedrooms in downtown Delray Beach have always been in demand, but today, most people are priced out as it’s hard to find a decent one bedroom rental for less than $1800 a month – walk to the ave, or walk to the beach.”
“In 2011, you could rent a one bedroom at the Astor for $1550 a month. They went as high as $2200 a month, and are now back down to $1950 a month on average for a one bedroom in good condition,” Olsher said.
Adding, “In 2011, you could find a one bedroom all-ages for $1000 a month, now you cannot. They start at $1300 a month. The affordable all-ages rentals are gone for the moment.”
The report shows Delray Beach’s median two-bedroom rent of $1,517 is above the national average of $1,194. Nationwide, rents have grown by 0.8 percent over the past year compared to the 1.4 percent increase in Delray Beach.
Renters will generally find more expensive prices in Delray Beach than most large cities. For example, Memphis has a median 2BR rent of $837, where Delray Beach is more than one-and-a-half times that price.
Olsher shares some encouragement for those renting though, “Rental prices have been going up since 2010, so ten years time. Inventory is rising in rentals, and landlords cannot keep raising rental prices when inventory is rising.”
Adding the seasonality factor, “You’ll start to see prices dropping even further, as this is the worst time of year to rent a property as a landlord. June. All the snowbirds have left for the year, and there are a lot of empty properties.”