Good news for everyone except Florida! Rent increases are slowing across the country, except for many towns in the Sunshine State.
According to a seal study Released today by Florida Atlantic University, Florida Gulf Coast and the University of Alabama, 38 of 100 housing markets measured across the county saw a slight drop in rent prices in September. However, Tampa saw a 0.17% month-over-month increase and Miami prices jumped 0.45%.
Surprisingly, three cities in Florida saw rental price declines. Orlando posted the largest month-over-month decline in the state and the 20th-largest drop in the nation at -0.33%. However, it should be noted that rental prices in Orlando are still up 14.07% from last year.
Lakeland and Jacksonville also saw slight declines, with Lakeland at -0.18% and Jacksonville at -0.06%.
According to the study, Florida is home to six of the 10 most overvalued cities in the United States, including Cape Coral-Fort Myers, Deltona-Daytona Beach, Tampa, North Port and Miami.
The Tampa metro area comes in as the 5th most overvalued rental market in the nation, with an average rent of $2,167.42 per month, as opposed to what renters should pay based on past rental history at $1,908.12.
That means Tampa Bay renters are paying a premium of 13.59%.
Miami is somehow worse and is currently seeing the highest rent increases, with tenants paying 18.22% more than they should.
The study says most of the United States is starting to slow when it comes to rents, with the biggest drop being El Paso Texas at 1.96%, although many cities are still suffering. Colorado Springs is facing the biggest increase in the nation at 6.71%.
“It’s clear from the data that rents in the United States are returning to a more normal long-term trend,” said Ken H. Johnson PhD, an economist at FAU’s College of Business. “But I’m not surprised to see Florida still leading the pack, given the high demand and severe shortage of units.”
This recent study shouldn’t come as much of a surprise, a similar report from April showed the Tampa metro area facing a 35.8% increase in rents over the previous year.
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