Fla. Has 9 of the top 21 overpriced rental markets

FAU: Fort Myers metro tenants are paying 18.05% above long-term trends, along with Miami, North Port, Jacksonville and five Central Florida metro areas.

TAMPA, Florida – The cost of rent is high and has been for some time, especially in Florida. While housing costs remain a major driver of headline inflation, a new study from Florida Atlantic University (FAU) explains why rental costs are so high in the Sunshine State, especially compared to the rest of the United States. United.

FAU reported that Florida is home to nine of the nation’s 21 most expensive rental markets, with Tampa, North Port and Lakeland among the cities where renters pay the highest premiums in the United States.

The Waller, Weeks, and Johnson Rental Index is a production of the Florida Atlantic University Real Estate Initiative, the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University, and the Alabama Center of Real Estate at the University of Florida. ‘Alabama.

The index showed that rental costs are increased month-to-month and year-to-year due to a number of factors, including short-term rentals and rental costs. owners association.

According to the FAU, “Cape Coral-Fort Myers renters lead the nation in paying 18.05% above trend for long-term rentals. Miami, North Port, Tampa, Orlando, Deltona-Daytona Beach, Palm Bay-Melbourne, Jacksonville and Lakeland also have some of the highest premiums in the country.

Compared to Cape Coral’s 18.05%, the rest of the US has an average rental premium of 7.4%.

Dr Ken Johnson, an FAU economist, said part of the problem with rising rental costs is short-term rentals like Airbnb and other sites that keep available units out of the housing stock more importantly, which is “already sold out”. Additionally, Johnson said HOAs across Florida have rules prohibiting landlords from renting out their units during the first year of residency, or banning it altogether.

“These two take-out units that could be rented out to the public, and it’s the shortage of available units that’s driving rental rates up,” Johnson said. “While developers and local governments clearly need to build more units, that’s not the only solution to this problem.”

“As a state, we must realize that the current rental crisis is hurting our potential for economic growth and making it increasingly difficult for service workers to live within reasonable distances of their jobs,” Johnson said, emphasizing the effect that unaffordable housing is having on Florida. economy.

While rent affordability is a big deal, it’s only part of the housing crisis that still plagues Florida.

According to the Beracha and Johnson Index, another FAU real estate analysis tracker, those same nine Florida cities with big rent premiums also have premiums when it comes to a home’s expected price relative to its selling price.

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