As country’s luxury rental market grows, Miami is among those leading the way | Real Estate

Apparently, living the high life as a renter is a trend that has exploded in recent years.

Demand for single-family home rentals is increasing across the country for those who want an affluent lifestyle without the huge mortgage payments or stress of homeownership.

A recent study by Point2an international real estate search portal, analyzed rental inventory in the 100 largest U.S. cities to see what deals Highest shares of luxury single-family homes for rent as of May 28.

Miami ranks ninth among cities with the highest shares of luxury homes for rent, with 33.4% of all rentals falling into this Tier 1 category in which monthly rents are above $5,000.

Miami also ranks third for Tier 2 luxury homes for rent, with nearly 13% of people asking for a monthly rent of more than $10,000. Only Los Angeles and Honolulu rank higher.

Irvine, California led the way with an impressive 74% of all rentals falling into the Tier 1 luxury category.

The Point2 report also indicates that another trend in the same market – specific rental housing – is booming.

According to a RentCafe Review According to Yardi Matrix data, 27,500 rental homes were completed across America in 2023, representing a 75% increase year-over-year.

Currently, nearly 45,500 single-family homes intended solely for rental are under construction nationwide.

“Even before the pandemic, new rental homes were being built at an impressive pace,” Point2 analysts said. “However, in the years following lockdowns and the chaotic beginnings of the remote work era, as people became more aware of their need for space and privacy, the number of single-family homes available for rent nearly doubled with each passing year.”

“By choosing a single-family home to rent, they get the indoor and outdoor space they need, while remaining mortgage-free, maintenance-free and stress-free.”

According to historical census data, there were 10.9 million renters living in single-family homes in 2001, or just under 30% of all renters. By 2022, there were 14.3 million single-family renter households, or about 32.5% of all renters.

In 24 of the 100 largest U.S. cities included in the analysis (with at least 50 such listings), between 10% and 74% of all single-family rental homes available on the market were in the luxury category.