It is no secret that living in South Florida is expensive, with the average home in Miami costing close to $600,000, and the average salary being about $67,000 a year.

Is home ownership out of reach? And is renting becoming the new long-term housing reality? It could be, according to Founder and CEO of real estate firm Neology Group, Lissette Calderon.

“The house that you used to be able to rent is now more expensive,” Calderon said. “The same house would probably, if you were buying it, would cost you $5,500 a month, but to rent it is $3,500 a month going on.”

And Zillow says that’s true. The average rent for a 3-bedroom house is about $3,700.

And Calderon says a lot of rental product is coming up in the market, many in areas that didn’t have a strong rental presence before. But she says there are important things to consider like who this rental product is being created for.

“We have an obligation to make sure that Miami is not a place just for the ultra luxury, but it’s for the people that were born and raised here and that want to continue to build lives here,” she said.

And the people looking to rent are divided into two groups, she said.

“There’s renters by choice. And I think remote work has allowed for that. You can live anywhere in the country and work anywhere. And so, renters by choice, it gives you greater flexibility. It gives you all kinds of optionality,” Calderon said. “But then there’s also renters by need.”

To own a single-family home, it’s not just the lofty price tag.

Insurify, an insurance comparison platform, says that in Miami, the average cost of yearly home insurance is more than $15,000.

Calderon mentions one has to factor in taxes, which fluctuate based on the cost and time you purchased your home, which is why she says more people than ever are turning to renting.

But for it to really be a long-term housing reality, Calderon says things like construction costs, real estate taxes and insurance shouldn’t be passed down through the cost of rent.

Instead, developers of multi-family or standalone units and properties need to think about not just housing but creating a lifestyle. That includes transportation, education options, and more.

“So it’s not just about, you know, the typical gym and the typical clubhouse, but are you creating the kids’ center? Are you creating areas for homework? Are you creating areas where larger families can live?” she said. “So yes, are the apartments bigger, but are the common areas bigger, and are they accommodating for kids? Is there the green spaces there? You know, that playground? So it’s really about thinking how this goes and how this plays out long term.”