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Study: Rent Growth in Some Florida Cities at or Below National Average

A collection of high-rise apartments located on along the beach in South Florida.

Eight of the nine measured cities in Florida saw yearly rent increases at or below the national average, though renters across the state are still struggling with an affordability crisis, according to researchers.


By amber bonefont | 7/24/2023

Eight of the nine measured cities in Florida saw yearly rent increases at or below the national average, though renters across the state are still struggling with an affordability crisis, according to researchers at 爱妃传媒 and two other schools.

Nationally, rents have increased 4.11 percent year-over-year in June, while yearly rents in metros across Florida have seen increases below that. Rents in Palm Bay rose 4.11 percent; Deltona, 3.91 percent; North Port, 3.66 percent; Miami, 3.38 percent; Tampa, 3.11 percent; Lakeland, 2.52 percent; Jacksonville, 2.43 percent; Orlando, 2.33 percent, according to the Waller, Weeks and Johnson Rental Index.

Cape Coral was the only metro in Florida with yearly increases higher than the national average: 7.73 percent.

鈥淭his doesn鈥檛 mean that rents have become affordable as rents are still high in these areas. They just aren鈥檛 expanding as rapidly as before,鈥 said , Ph.D., real estate economist in and member of the . 鈥淭he state is easing out of a rental crisis and into an affordability crisis where renters are faced with increasing costs and incomes that aren鈥檛 rising to meet those costs.鈥

Johnson, along with fellow researchers , Ph.D., of , and , Ph.D. of the , statistically estimate where average rent should be for a market and then compare that to where actual average rent is, and compute a premium or discount using past and current leasing data from Zillow鈥檚 Observed Rent Index.

Year-over-year and month-over-month changes, as well as an affordability metric, are also estimated in the monthly report of the nation鈥檚 largest metros to provide a dynamic picture of the nation鈥檚 rental markets.

The latest results can be found .

A few factors are keeping rents elevated in Florida, with little signs of a decline: a sustained influx of out-of-state people still moving to the state, hybrid office work options that allow people to work from home and an insufficient number of units coming on the market to meet demand.

鈥淚t鈥檚 taking longer than it needs to build in Florida, and we are still exposed to the scenario where apartment rates could take off again if we don鈥檛 start building fast enough,鈥 Weeks said. 鈥淚t鈥檚 also possible that some people will leave the area, as the cost of living is getting too high.鈥

The highest yearly rental increases in the country were found in Madison, Wisconsin, where rents increased 10.42 percent; Charleston, South Carolina, 8.16 percent; Springfield, Massachusetts, 7.68 percent; Wichita, Kansas, 7.30 percent; and Knoxville, Tennessee, 7.21 percent.

鈥淚n the areas of the country where year-over-year rent increases are the highest, supply continues to significantly lag demand.聽 It takes time to put turnkey units into the ground. In time, rents will come into line as supply and demand come into balance. However, the affordability issue will still be there,鈥 Waller said.

All three researchers agree that the rental crisis is morphing into a protracted housing affordability crisis, which more units on the markets and corresponding increases in wages can best solve.

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