The average rent in Miami is $1,300, according to a study by real estate agent Anecdotal Intelligence.
That’s a significant drop from the $2,000 to $3,000 average price tag the average renter spent on a condo in 2012.
In the past decade, condo rents have skyrocketed, with condo owners paying an average of $1.9 million more per year than renters.
For many, the change is less about the rental rate and more about the amount of work they do.
“It’s a very important issue,” said Cristian Morales, a Miami-based home improvement consultant who is also a founding partner of Anechentica Real Estate Services.
“You need to get the work done and the energy spent in your home.”
Many homeowners are paying much more for a home renovation than they were before the recession.
In Miami, home prices jumped more than 5 percent in the past year, according the Realtors Association.
“People are looking for things they can do that are not just going to sit in their basement for the rest of their lives,” said Brian Vinson, the chief executive of the RealtyTrac brokerage firm.
“They want to buy something that will be more valuable in the long run.”
In recent years, home price gains have been particularly notable in Miami, where developers have been able to build condos at an average cost of $856,000.
In 2015, the median condo price in Miami was $1 million, according RealtyTrak.com, a website that tracks real estate market data.
For the year ending in June, the average condo price was $831,500.
“I think that’s the tipping point,” said Vinson.
“The average rencer wants to pay $2 million more than the median.
That means a renter will be paying a higher percentage of the cost of their condo.”
In some cases, condo owners have taken advantage of this trend by selling their homes for far less than their condo purchase price.
In June, for example, a man in Florida named Charles Hwang sold his condo for $3.8 million.
He said he spent most of the $3 million on renovations and renovations costs.
Hwang said the renovations cost him more than he originally anticipated.
“We’ve always had a hard time finding a buyer for a place we built, but when we did the renovations we were able to get a lot of value out of it,” Hwang told CNNMoney.
“There were a lot more people in the neighborhood who were really interested in it than we expected.”