A recent study by Florida Atlantic University (FAU) has noted a moderation in the escalation of rental prices in the southern state, contrasting with significant increases in the Northeast of the country. Following periods of substantial hikes, rents in Florida are showing signs of stabilization when compared to the national average.
The data was gathered from an ongoing project, co-produced by the FAU's Real Estate Initiative, the Lutgert College of Business's Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University, and the University of Alabama's Real Estate Center.
All metropolitan areas in Florida have experienced rental increases below the national average of 3.57% per year. Specifically, rents in Cape Coral and North Port saw decreases of 2.83% and 0.39%, respectively, while in Miami, the increase was 2.76%.
"Most metropolitan areas in Florida are returning to their historical price trends," explains Ken H. Johnson, a real estate economist at FAU. "Although tenants still pay a premium in various markets, these increments have considerably reduced each month over the past year," he added.
In the Northeast of the United States, the increases have been much more pronounced, with cities like Syracuse and Providence experiencing rises of up to 8.79% and 8.16%, respectively. "We are seeing some of the largest increases in the Northeast, primarily because the housing supply is not expanding quickly enough to meet the demand," states Bennie Waller, from the University of Alabama.
Regarding affordability, in Miami, a household needs to earn at least $109,925 annually to ensure that the cost of rent does not exceed 30% of their income. This figure remains high compared to other cities in the state, reflecting the ongoing pressure on tenants in Florida.
This study highlights the need for policies that facilitate access to housing and mitigate the impact of rental costs on family budgets. "Although the situation is improving, many tenants will continue to make sacrifices to keep a roof over their heads until incomes rise," concludes Shelton Weeks, from Florida Gulf Coast University.