People moving to South Florida from other parts of the country are arriving with bigger budgets, pushing up prices in an already tight rental market, a new report concludes.
The monthly budgets of out-of-town movers are almost $300 higher than the budgets of in-town movers, according to a report from Apartment List, an online marketplace for apartment listings.
Apartment hunters are getting wealthier, and the shortage of houses to buy is keeping them in rentals longer, the report said.
A local renter has an average budget of $1,522 a month in the South Florida area compared to an out-of-town mover with a budget of $1,809, Apartment List determined, using their own listings and Google search trends.
Out-of-towners looking to move to the area have seen their budgets grow by about 8% since the beginning of the year.
“Aided by the flexibility of remote work, wealthier renters are rearranging themselves across the country and putting additional pressure on already-competitive rental markets,” the report said.
In general, 30% of prospective movers are looking to head to a new metropolitan area, according to Apartment List. Almost 25% of searches for apartments in the South Florida area come from outside the area, with the top three being New York, Orlando and Atlanta, the report said.
As more people move with larger budgets, competition for apartments rises.
The median rent for a two-bedroom apartment is $1,800 in West Palm Beach, $2,250 in Fort Lauderdale and $2,360 in Miami, according to Zumper, a national apartment search firm.
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