The average rent in Broward County has hit a record high, and there isn't much reason to believe it's expected to plummet anytime soon. According to a new Marcus & Millichap Apartment Research Market Report, rent in Broward rose 2.5 percent during the third-quarter of 2015, bringing the average cost of rent in Broward to $1,405. In 2015, overall rent has risen 8.2 percent, topping the 5.2 percent rise in the year prior.
Of the apartments analyzed, one-bedroom units saw the biggest price hike, up to an average of $1,221 per month — a 3.2 percent increase. One-bedroom units in Broward will remain on the rise as studies show the area is a hotbed for young residents who are just entering the workforce.
The rise in rent is in large part responsible due to vast increases in demand for housing in Broward County. Apartment complexes throughout Broward saw substantial move-ins during the third quarter — a point in the year where recent college graduates and out-of-towners are usually on the move. The Apartment Research Market Report estimates the demand will continue to increase, and the average rent in Broward will reach $1,422 by the end of this year.
Although developers are building new housing in the county, vacancy continues to be on the decline — so prices continue to rise to meet the demand. Since the third-quarter of 2014, 3,500 new rentals were constructed — mostly in the Fort Lauderdale, Miramar, and Pembroke Pines areas — and another 1,700 multifamily units have been authorized for construction. The construction of new housing between 2014 and 2015 represents a 13 percent increase from the previous two years.
What's also contributing to the influx of new residents in Broward is the fact that jobs are popping up. From 2014 until now, 30,000 new jobs have been created. That's good news, but try telling longtime renters in Broward that. Residents on year-to-year common leases have seen their rent jump year after year, and there is definitely no sign of a decrease anytime soon.
Let's hope those new jobs pay well.