Miami turns into Airbnb's playground! Over 50% of luxury new condos are being built specifically for short-term party rentals
A report found over half of all new Miami condos will be turned into Airbnbs
10,335 condos in the pre-construction phase are set to be short-term rentals
Experts slam the move and said the city needs more units for long-term renters
By Rachel Bowman The Daily Mail
Over half of all new condos being built in Miami are specifically for short-term rentals as residents struggle to find affordable long-term housing, a new report found.
As droves of new residents arrive in the Sunshine State, many are struggling to find affordable housing as the state's condo market is in the doldrums.
Real-estate firm ISG World reported that 31 pre-construction condo buildings in the Miami region are primed to be turned into Airbnbs, according to Business Insider.
A total of 10,335 condo units are in the pre-construction phase across Miami-Dade County and nearby Broward County - and more than 50 percent of the total condos are set to be short-term rentals, the firm's first quarter report found.
Miami has long been heralded as a top party and beach vacation spot in the US - with its hot weather, luxurious restaurants, and booming nightlife.
Real estate firm ISG World reported that a total of 10,335 condo units in the pre-construction phase across Miami-Dade County and nearby Broward County are set to be short-term rentals
The Florida city has also become known as a playground for the rich and famous - from billionaires docking their yachts along the coast, to A-listers flocking to Miami for its see-and-be-seen social calendar, including Art Basel each December.
'We've had a development industry that is adding more short-term rentals to South Florida inventory, and that's not what we need,' CEO of ISG World Craig Studnicky said.
Studnicky suggested developers should focus on building traditional rentals to meet the demands of the market.
In most of Florida's major markets, condo sales are down in January, despite falling prices, according to data from brokerage firm Redfin.
Condo sales were down 6.8 percent statewide in Florida from a year ago in January, with pending sales down 3.5 percent on the year.
In Miami, for example, condo prices fell 3 percent in January from a year ago, sales dropped 9 percent and new listings rose 27 percent, according to Redfin.
Experts said the soaring cost of insurance in Florida, along with rising monthly condo fees, are reducing demand from buyers by making condos more expensive to own.
According to the Insurance Information Institute, homeowner's insurance in Florida has jumped 102 percent in the last three years, and costs three times more than the national average.
Last year the average cost of home insurance in the Sunshine State was about $6,000, the highest average premium in the US, according to figures from the group cited by WTVT-TV.
Miami is found to be lacking lacking affordability and there is currently a $1.5 billion gap to provide adequate, affordable housing for the entirety of Miami-Dade County, according to a study by the nonprofit Miami Homes for All.
Experts said the soaring cost of insurance in Florida, along with rising monthly condo fees, are reducing demand from buyers for condos. Pictured: A $259 per night Miami Airbnb condo
Miami residents have complained of rowdy partiers staying in short-term rentals. Pictured: A $364 per night Miami Airbnb condo
The county is missing over 90,000 affordable units for renters making less than $75,000 a year, the study found.
Along with meeting the demand for traditional rentals, other residents have complained of rowdy partiers staying in short-term rentals.
Current Miami condo Airbnbs having a going rate between $100 a night to nearly $400.
Miami Beach Police cracked down on spring breakers this year by implementing bag checks, restricted beach access, DUI checkpoints, license plate readers, liquor stores shutting at 8pm and heightened police enforcement for consumption of alcohol in public, drug possession and violent behavior.
During last year's spring break, a state of emergency was declared when two people were shot dead. About 105 firearms were seized and 488 arrests were made by officials.