Rental markets across the United States are reportedly beginning to cool, but Florida is likely to remain an exception thanks to the combination of enduring high demand and an inflated cost of living.
A recent survey shows nationwide renter’s markets are down more than 33 percent compared with last year.
Florida’s median rent for June was more than 1 percent less than a year earlier and more than 2 percent lower than in May.
“A slight cooldown would stop things from getting worse for renters looking for an affordable unit in Florida,” Ms. Ray said in a statement released by the clearinghouse. “But it can’t make up for double-digit percentage rent increases that already took place the last couple of years.
“This means the rental market is stabilizing at a really high rate.”
So rent prices in Florida remain well above average and likely will stay that way.
The average rent in Tampa is around $2,223, according to the report.
In Orlando, it is $2,124, and in Jacksonville—in the northeast corner of the state—it is $1,635.
Migration From the Nation
More people moved to Florida than any other state between July 2021 and July 2022, according to the U.S. Census. On average, 1,218 people flooded into the state to set up residence each day.“Robust growth is still occurring within our state,” said Richard Doty, Geographic Information Systems (GIS) coordinator and research demographer at the BEBR, in a written statement from the bureau.
Rising Cost of Living
Florida has no state income tax, which helps the state boast a lower cost of living than California and New York.However, the cost appears to be on the rise in general, sitting at 3 percent higher than the national average.
The university defines a “rent-burdened” resident as one who spends more than 30 percent of his or her monthly income on rent. Anyone who spends more than 50 percent on rent is classified as “severely rent-burdened.”
“Affordable” living is defined as spending less than 30 percent of monthly income on rent. Someone who makes an average salary in the state would have about $1,500 to put toward rent in the affordable range. That amount is far below the median cost of rent in the state’s major cities.
About 825,990 low-income households in Florida allocate more than 40 percent of their income to rent, UF’s Shimberg Center for Housing Studies reports.
Over the past 12 months, the Consumer Price Index (CPI) in Florida increased by 3 percentage points, according to the latest data from the Bureau of Labor Statistics (BLS). It had a 0.2 percent jump between June and July.
The CPI reflects the changes in price for goods and services over a period of time.
The cost for “shelter” recorded a 7.8 percent increase. The shelter index was the largest contributor to overall monthly increases, accounting for 70 percent of that overall increase, according to the BLS.
The BLS also reported a 5.7 percent increase in food costs over the past year, which included a 7.7 percent increase in “food away from home”—the cost of eating out.
The price of electricity also jumped by 5.4 percent, and transportation costs have increased by 8.2 percent.
Medical care commodities logged a 4.2 percent increase, and the price index for physician services increased by 0.7 percent over the past month alone.
“Tenants have a lot of ground to make up after years of hot rental markets in Florida,” Ms. Ray said. “Affordable housing will continue to be a challenge for quite a while.”
Patricia Tolson contributed to this story.