DORAL, FL – Real estate prices in South Florida seem to be rising, according to a recent report made by CBS Miami. This is increasing the cost of living for locals.
The reason behind this trend lies in the fact that people from other states, where the cost of living is higher, are moving more into South Florida.
Renting and buying properties is usually more expensive in places like New York, New Jersey or Los Angeles, for example, than in South Florida.
So, newcomers from those places find prices here cheaper, which becomes a point of interest for them but a downside for locals because it impacts the price for renting or buying, as reported by the media outlet.
“When we get those people from New York and they say, ‘You are kidding me! Four-thousand square-feet for $2 million? I could get half the square feet for the same price,’” said realtor Roger Lohse in an interview with CBS Miami.
As a result of a rise in real estate prices in South Florida, purchasing a property becomes unaffordable for many people, which makes rentals to be in more demand now, despite the fact they had a “slight decline” in Miami and Fort Lauderdale for a while, according to the rental website RENTCafe cited by the media.
“That’s an indication people can’t afford to buy a home or have the deposit but they need a place to live,” says Lohse.
According to statistics gathered for the report, right now the average rent in Fort Lauderdale is almost $2,000 a month, while Miami’s average is slightly under $1,700 a month; Coral Gables is at $2,500 a month and Doral, at over $2,000. Homestead, on the other hand, is at about $1,300 a month.
In Pembroke Pines rents went up 3% and Miramar’s rent is up almost 1.5 %.