Florida is home to 9 of the 21 most expensive U.S. rental markets, FAU research finds
TAMPA, Fla. (WFLA) – 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 takes a look at why rental costs are so high in the Sunshine State, especially compared to the rest of the United States. United States.
FAU reported that Florida is home to nine of the 21 most expensive rental markets in the country, 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 Indexis 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 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 UFA“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.”
According to the indexhere’s where Florida cities fall in the ranks, organized by Premium or Discount percentage, as of November 2022.
|Average rent||Where should the rent be||MoM Change||Annual change|
|1||Cape Coral, Florida.||18.05%||$2,219.75||$1,880.39||1.95%||16.19%|
|3||North Port, Florida.||15.35%||$2,378.82||$2,062.28||3.27%||9.82%|
|16||Palm Bay, Florida.||9.40%||$2,039.97||$1,864.76||-0.37%||10.82%|
|N / A||United States||7.4%||$2,008||$1,869.72||-0.41%||8.42%|
“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 Beracha and Johnson index, another FAU real estate analytics tracker, those same nine Florida cities with large rent premiums also have premiums when it comes to a home’s expected price over its sale price.
|average sale||Expected price|
|1||Cape Coral, Florida.||67.48%||$428,059||$255,588|
|2||Palm Bay, Florida.||58.51%||$367,584||$231,897|
|12||North Port, Florida.||50.81%||$495,656||$328,666|