Miami, FL

Rent in Miami is too expensive. Many people can’t afford it

Matt Lillywhite

It's no secret that renting a home in Miami is too expensive for many Americans. That's why Marcia Fudge, Secretary of Housing and Urban Development, recently called Miami the “epicenter” of a housing crisis in the United States.

According to data published by The New York Post, "For every vacant rental unit in Miami-Dade County, there are 31 prospective renters who line up to sign lease agreements. That’s more than twice the national average of 14 prospective renters per vacant unit."

It's also worth mentioning that Miami was recently crowned the least affordable housing market in the United States, according to RealtyHop. "An average Miami family would have to set aside 85.96% of their annual income to afford a home."

Jobs and household income will suffer during a recession.

Many economists believe a recession is inevitable, according to an article published by CNN. "The United States economy is in jeopardy. Higher prices for essentials like food and energy are crimping household incomes, while stronger consumer demand has pushed up the prices for a range of goods and services, from travel to apartments. Given this backdrop, many economists believe that recession is inevitable either this year or next."

If a recession does happen, some Americans will lose their jobs as companies cut costs to survive the economic downturn. And obviously, a reduction in household income will make it difficult for many families to pay rent or afford their mortgage payments.

If the economic downturn continues, Miami could see an increase in evictions.

Everyone knows that rent in Miami has skyrocketed over the past year. $2,658 is the average price of a studio apartment, according to figures published by Rent.com. Meanwhile, a typical 1-bedroom apartment in Miami costs $3,172.

If tenants can't continue to afford the high cost of rent in Miami, they might be evicted. And sadly, families with children are more likely to be evicted or foreclosed upon, according to research published by CNN.

Unfortunately, we've already seen this scenario play out before. Millions of families fell into poverty and homelessness during the Great Recession, per the Center on Budget and Policy Priorities. "Home foreclosures pushed many owner and renter families into the rental market, driving up rents in some areas by increasing the demand for housing — despite falling incomes and rising unemployment."

What do you think about the Miami housing crisis? Leave a comment with your thoughts. And if you think more people should read this article, share it on social media.

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