Florida Housing Market Sees Rent Growth Below National Average

After years of soaring rent prices, Florida’s housing market is finally experiencing a slowdown, with rent growth falling below the national average. According to researchers from Florida Atlantic University and other institutions, Florida’s metropolitan areas are gradually returning to their historical pricing norms.

Florida Rents Rise Slower Than U.S. Average

According to the latest data from the Waller, Weeks, and Johnson Rental Index, rents in Florida have experienced modest growth rates compared to the national average. While national rents have seen an annual increase of 3.57%, Florida’s major cities have witnessed tepid growth rates below this figure.

In cities like Cape Coral and North Port, rents have even declined year-over-year, by 2.83% and 0.39%, respectively. Similarly, rent increases in Orlando, Palm Bay, Jacksonville, Deltona, Tampa, Lakeland, and Miami have remained below the national average, ranging from 0.90% to 2.76%.

Dr. Ken H. Johnson, a real estate economist at FAU’s College of Business, noted that Florida’s metros are gradually aligning with their historical pricing trends. He mentioned, “Rent growth is significantly below the national average, suggesting that Florida may no longer be the epicenter of the nation’s rent crisis.”

The Waller, Weeks, and Johnson Rental Index, which monitors rent growth in the 100 most populated metropolitan areas across the country, underscores the subdued rental market in Florida. Researchers analyze the premium or discount renters pay for housing based on historical pricing trends.

While Florida sees a moderation in rental rates, other regions, particularly in the Northeast, are experiencing robust growth. Cities like Syracuse, Providence, and New Haven have witnessed some of the highest rental increases, driven by insufficient housing supply to meet demand.

Despite the moderation in rent prices in Florida, the income required to afford rental units remains high. In cities like Miami and North Port, households need to earn six-figure incomes to avoid spending more than 30% of their earnings on rent.

Shelton Weeks, Ph.D., emphasized, “Though rents have moderated across the state, many renters will continue to make sacrifices to keep roofs over their heads until incomes rise.”

In summary, while Florida’s housing market is witnessing a slowdown in rent growth, the affordability of housing remains a challenge for many residents. With rental rates slowly aligning with historical norms, the focus now shifts to addressing the income disparities to ensure housing affordability for all.