“We are getting pushed out by these people who aren’t native Miamians.” – Natalia Solar

Miami has always been an attractive location for tourism, vacations, and retirement due to the lure of our year-round warm weather, scenic beaches, and nightlife. However, the pandemic has made Miami the mecca in the real estate market. Due to stringent Covid-19 regulations across the United States, many northerners have been flocking from New York, Boston, and even Canada to sunny South Florida.[i] A plethora of affluent business owners from finance and technology firms are also putting roots down in Florida, in attractive areas like downtown Miami, Brickell, Edgewater, and Wynwood due to Florida’s business-friendly and amenable tax laws.[ii] This influx in population has caused rent in Miami to skyrocket, squeezing Miami locals out of the rental housing market.

Although many believe that the city is profiting from a robust increase in migration from other states and countries, working-class families seem to be getting hit the hardest. Unfortunately, individuals making minimum wage cannot afford a regular apartment. The rental market has also become exceedingly competitive. Rent in Miami-Dade has climbed 58% from March 2020, and landlords are eager to terminate leases and accept a new wave of nonnative tenants who are willing to pay more.[iii] These new Miami residents typically have higher-paying jobs and are accustomed to paying more in rent. According to the U.S. Department of Housing and Urban Development, Miami-Dade’s median income is much lower at about $68,000, compared to over $80,000 in both New York and Los Angeles.[iv] In essence, despite these increases, the rent still seems affordable for non-natives in comparison to what they were paying in northern states.

Currently, “an average Miami apartment of 887 square feet now rents for $2,132 a month.”[v] Miami natives are working hard just to stay afloat, and are frustrated with the current economy. Many are seeing their rent double and, in some instances, even triple in a blink of an eye. To secure housing in a good neighborhood, tenants have to offer about $500 over the asking price, while others pay rent one year in advance.[vi] This transition has become financially devastating for many Miamians who are facing eviction with nowhere to go.

The new Miami economy has forced Miami-Dade Mayor to declare a housing emergency and launch a Building Block Program.[vii] The program is an initiative to expand Miami-Dade’s rental assistance program as well as implement a grant program to encourage landlords to charge affordable rent prices.[viii] Recent rent surges have become a concern for many Miami natives causing a legal issue to brew. Currently, Florida law prevents rent control. Landlords are at liberty to raise the rent as they please and as the market changes. This law may be an issue that Florida legislatures may need to explore to limit these unprecedented rent increases. According to Suzanne Hollander, a law professor at Florida International University, to ratify rent control, the burden is on the municipality to show its need for rent control.[ix] For instance, the local municipality would need to show the number of individuals spending over 30% of their salary on rent, the number of evictions taking place, and its impact on homelessness.[x] Rent control laws are extremely uncommon in the United States. It has only been enacted in a few states, including California, Maine, Maryland, New York, Oregon, and Washington D.C.[xi] A Florida Senator, Victor Torres, has also attempted to push for rent control by sponsoring Senate Bill 580.[xii] This bill would have alleviated some pressure off of tenants by delegating rent control powers to local governments across Florida; however, it received no traction.[xiii] It seems like everyone is waiting for the market bubble to pop, but this new Miami market may be here to stay.

Rent control discussions have been controversial, as some have considered it unconstitutional. Inflation has caused the market to change exponentially, not only for tenants but for landlords as well. Not all landlords are big businesses; most are regular people of ordinary means who often depend on their rental income to sustain their livelihood. Landlords have pushed back against rent control and have argued that they should be able to control the pricing of their properties without government intrusion. Pursuant to Article I, Section 10, Clause 1 of the United States Constitution, no state may pass a “law impairing the obligation of contracts.”[xiv] This provision, also known as the Contract Clause, prevents the government from legislating in a way that impedes private contract rights. It would be extremely difficult to argue that implementing rent control laws or regulations in Florida does not violate the Contract Clause. However, when it comes to the legitimate interest of the general public, the state is allowed to exercise its police powers. This issue of affordability has disrupted the peaceful balance between landlords and tenants. Government interference would appear to be giving one side an advantage over another. Implementing rent control in Miami would be a daunting task, especially with large profits to be made. Legal disputes regarding landlord-tenant matters have also risen due to this affordability crisis. Even Legal Services of Greater Miami, a firm that offers free assistance to low-income residents has seen a rise in their caseload due to housing disputes.[xv]

It is difficult to determine if rent control would be the best solution for all parties being impacted by this housing crisis. Many have suggested that the most effective way to attack this issue of affordability of housing in Miami is for Miami-Dade’s local government to construct more affordable housing units throughout the county.  However, it does not seem realistic to expect a quick turnaround in housing developments, especially when waiting for government approval and supply chain issues.

Affordable housing is a basic necessity, and everyone deserves home security. Unfortunately, rent prices continue to increase, leaving a number of local Miamians with feelings of uncertainty. The people of this vibrant city are suffering with no immediate remedy in sight. All Miami residents should be afforded the opportunity to quality, secure, and affordable housing, but it seems like that opportunity is quickly evaporating due to shortages in affordable housing. Miami’s rich and diverse culture will soon be bought out and erased by northerners and big businesses, forcing true Miamians to choose between their hometown or having something to eat.

[i] See Miami’s lure during Covid sends housing prices through the roof, France 24, (Jan. 1, 2022) https://www.france24.com/en/live-news/20220130-miami-s-lure-during-covid-sends-housing-prices-through-the-roof.

[ii] See Nathan Hale, CRE Landlords, Tenants Fight For Upper Hand In S. Florida, Law360, (Sep. 2, 2022, 4:01 pm) https://www.law360.com/real-estate-authority/residential/articles/1522590/cre-landlords-tenants-fight-for-upper-hand-in-s-florida; see also Ariel Zilber, Miami locals blame New Yorkers for driving up rents, N.Y. Post, (May 11, 2022, 1:07 pm) https://nypost.com/2022/05/11/miami-locals-blame-new-yorkers-for-driving-up-rents/.

[iii] See Alexandre Tanzi, These Cities Saw Rents Climb During the Pandemic, Bloomberg, (Apr. 14, 2022, 9:11 am) https://www.bloomberg.com/news/articles/2022-04-14/miami-rents-rose-58-during-covid-while-buffalo-s-declined-2-3?leadSource=uverify%20wall.

[iv] See Homeowner Assistance Fund, HUD User, https://www.huduser.gov/portal/datasets/haf-il.html#2022_data (last visited Sept. 26, 2021).

[v] See Miami, FL Rental Market Trends, RentCafe, https://www.rentcafe.com/average-rent-market-trends/us/fl/miami/ (last visited Sept. 26, 2022).

[vi] Nathan Hale, Miami-Dade Mayor Unveils $85M In New Housing Crisis Efforts, Law 360, (Aug. 29, 2022, 8:55 pm) https://www.law360.com/real-estate-authority/articles/1525263/miami-dade-mayor-unveils-85m-in-new-housing-crisis-efforts.

[vii] Id.

[viii] Id.

[ix] See Phil Prazan, Miami-Dade Explores Studying ‘Housing Emergency,’ Possible Rent Controls, NBC Miamihttps://www.nbcmiami.com/news/local/miami-dade-explores-studying-housing-emergency-possible-rent-controls/2711075/ (last updated Mar. 13, 2022, 7:05 pm).

[x] Id.

[xi] Id.

[xii] Id.

[xiii] Id.

[xiv] See The Constitution of the United States: A Transcription, Nat’l Archives, https://www.archives.gov/founding-docs/constitution-transcript (last visited Sept. 26, 2022).

[xv] See Lidia Dinkova, Miami-Dade May help renters in eviction court secure attorneys, The Real Deal, (July 12, 2022, 5:45 pm), https://therealdeal.com/miami/2022/07/12/miami-dade-may-help-renters-in-eviction-court-secure-attorneys/.