TAMPA, Fla. (WFLA) – Rent is high and has been for some time, especially in Florida. With housing costs still a major driver of headline inflation, new research from Florida Atlantic University sheds light on why the cost of renting is so high in the Sunshine State, especially compared to the rest of the US.
FAU reported that Florida has nine of the 21 most expensive rental markets in the country, with Tampa, North Port and Lakeland being the cities where renters pay the highest premiums in the US.
The Waller, Weeks and Johnson Rental Index is a product of Florida Atlantic University’s Real Estate Initiative, Florida Gulf Coast University’s Lucas Institute for Real Estate Development and Finance, and the University of Alabama’s Alabama Center for Real Estate.
The index showed that rental costs are increasing both month-to-month and year-to-year due to a number of factors, including short-term rentals and homeowner association costs.
According to FAU, “Cape Coral-Fort Myers renters outperform the nation, paying 18.05% more than the long-term lease trend. Miami; North Port; Tampa; Orlando; Deltona-Daytona Beach; Palm Bay-Melbourne; Jacksonville; and Lakeland also has 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 economist at FAU, said part of the rising cost of rent is short-term rentals like Airbnb and other sites that provide affordable units outside the larger housing stock, which is “already depleted.” Additionally, Johnson said, HOAs across Florida have rules against owners renting out their units in the first year of occupancy or prohibiting it entirely.
“Both of these take away units that could be rented out to the public, and the lack of available units increases rental rates,” Johnson said. “While developers and municipalities certainly need to build more units, that’s not the only solution to this problem.”
As of November 2022, Florida cities are on this list, organized by Premium or Discount interest, according to the index.
|Average rent||Where the rent should be||Mom change||YoY changes|
|1||Cape Coral, Fla.||18.05%||$2,219.75||$1,880.39||1.95%||16.19%|
|3||North Port, Fla.||15.35%||$2,378.82||$2,062.28||3.27%||9.82%|
|12||Orlando, Fla.||9.56%||2007.66 USD||$1,832.48||-0.52%||9.54%|
|16||Palm Bay, Fla.||9.40%||$2,039.97||$1,864.76||-0.37%||10.82%|
|N/A||United States||7.4%||2008 US dollars||$1,869.72||-0.41%||8.42%|
“As a state, we need to understand that the current rental crisis is hurting our potential for economic growth and making it difficult for service workers to live within a reasonable distance of work,” Johnson said, highlighting the impact of unaffordable housing on Florida. economy.
While rental affordability is a big issue, it’s only one part of the housing crisis that continues to affect Florida.
According to the Beracha and Johnson Index, another FAU real estate analytics tracker, the same nine Florida cities with large rental premiums also have premiums when it comes to the expected price of a home compared to its sale price.
|Medium For sale||Estimated price|
|1||Cape Coral, Fla.||67.48%||428,059 US dollars||255,588 US dollars|
|2||Palm Bay, Fla.||58.51%||367,584 US dollars||231,897 US dollars|
|4||Deltona, Fla.||57.13%||363,575 US dollars||231,386 US dollars|
|6||Lakeland, Fla.||56.42%||321,783 US dollars||205,723 US dollars|
|7||Tampa, Fla.||56.20%||391,314 US dollars||250,518 US dollars|
|12||North Port, Fla.||50.81%||495,656 US dollars||328,666 US dollars|
|21||Orlando, Fla.||47.71%||402,064 US dollars||272,197 US dollars|
|24||Jacksonville, Fla.||45.86%||378,914 US dollars||$259,779|
|37||Miami, Fla.||38.67%||472,926 US dollars||341,052 US dollars|