SKN | Miami-Dade’s Affordable Housing Shortage Reaches 118,000 Units as Lower-Cost Rentals Disappear

Miami-Dade County’s affordable housing challenge is deepening despite evidence that some residents are leaving because of rising living costs. A study by the University of Florida Shimberg Center for Housing Studies and Miami Homes For All estimates that the county lacks 118,000 apartments affordable to households earning up to 80% of area median income (AMI).

The estimated shortage has increased from 90,181 units in the 2024 study. Annie Lord, executive director of Miami Homes For All, attributes the deterioration partly to the loss of lower-cost apartments through rising rents, property renovations and demolitions.

These properties are often described as naturally occurring affordable housing: older apartments that rent below prevailing market rates but are not legally required to remain affordable to households within specific income limits.

Their loss creates a particular challenge because replacement housing may be built at higher rents, even when new development increases the overall number of apartments.

The Economic Breakdown

The study indicates that nearly half of Miami-Dade’s 2.8 million residents are housing-cost-burdened, meaning they spend more than 30% of their income on housing and related costs. The share is substantially higher among renters: 61%, compared with 34% of homeowners.

The shortage is especially pronounced among lower-income households. For those earning up to 60% of AMI, the county lacks more than 143,460 units. The reported gaps are 136,782 units for households earning up to 50% of AMI and 109,464 units for those earning up to 40%. For households earning up to 30% of AMI, the shortage stands at 82,383 units.

By contrast, the gap for apartments affordable to households earning up to 120% of AMI is 24,182 units. The difference highlights the uneven distribution of available housing relative to household incomes.

The report also identifies several pressures on existing rental stock. Some landlords are raising rents to account for higher operating expenses, including insurance, while others are renovating or demolishing older properties. Condominium owners facing higher assessments for structural repairs may also increase rents or sell their units, removing some apartments from the rental market.

Population movements add another dimension. According to the U.S. Census Bureau figures cited in the report, 72,254 Miami-Dade residents moved elsewhere in the state or country last year. International migration and births partly offset those departures, but the county recorded a net population decline of 10,115 residents.

The Hidden Picture

The supply challenge is not simply the number of apartments being built, but whether those homes are affordable to households facing the greatest financial pressure.

Florida’s Live Local Act allows qualifying developers greater flexibility on zoning when 40% of a project’s apartments are designated as affordable or workforce housing. The law has generated substantial development interest and can shorten approval timelines by allowing certain projects to proceed through administrative approvals rather than public hearings.

However, many projects target households earning up to 120% of AMI, rather than lower-income groups facing the largest shortages. Lord argues that the legislation could be modified to encourage deeper affordability.

Financing remains another constraint. Subsidized affordable housing often relies on a combination of low-income housing tax credits, municipal grants and low-interest loans. Miami-Dade also uses a documentary stamp surtax on deeds to help finance affordable housing development.

Yet a 2025 Miami Homes For All study identified 9,518 planned affordable units across 72 projects that lacked financing. Lord said the documentary stamp surtax can generate approximately $60 million in strong years, but argued that additional investment is needed to prevent the shortage from widening.

The possible effects of Florida’s Amendment 3 add uncertainty. The proposal would expand the homestead exemption for primary residences. Opponents of the measure warn that local governments could respond to reduced revenue by increasing taxes on investment properties, potentially adding costs for landlords and renters. The actual impact would depend on the policy’s implementation and how local governments adjust their budgets.

Closing

Miami-Dade’s housing shortage reflects a mismatch between the affordability levels households need and the homes being retained, financed and developed. New projects and faster approvals may increase supply, but their effectiveness will depend on whether funding and policy incentives support housing for residents with the greatest affordability constraints.

Can Miami-Dade expand its housing supply quickly enough while preserving existing lower-cost rentals and directing more new development toward households facing the deepest affordability gaps?