Sunshine State is an increasingly dark place to become a renter.
According to a recent analysis of 107 rental markets by researchers at Florida Atlantic University, Florida Gulf Coast University, and the University of Alabama, annual rents rose in some of the country’s highest-ranked Florida cities in April. I am.In fact, only two of the country’s 10 major rental markets could be found outside Of Florida. They were ranked 4th and 7th year-on-year in Sierra Vista, Arizona and Knoxville, Tennessee, respectively.
“For some people, the only way to live in Florida was to rent, and now it’s a burden too.” Ken H. JohnsonAn economist at Florida Atlantic University Business College, Monday’s statement. “Or, I can’t afford to pay the rent, so I think there will be more rent to take on roommates and reduce eating out.”
Researchers said Fort Myers pushed the average rent in April to $ 2,073 after seeing the country’s largest rent surge (up 32.4% year-on-year). Miami’s metropolitan area was characterized by being the “most overrated market.” Researchers said April rents reached $ 2,846, “showing that past leases averaged only $ 2,331.”
In their analysis presentations, researchers blame Florida’s predicament for rising demand, supply chain problems, rising building material costs, and, in some areas, the lack of assets available for development. did.The state also experienced Population boom during a pandemic..
But the problem is not new.For example, in Orlando Lack of affordable rental housing for years.. And it’s not necessarily specific to Florida. Various cities have seen the largest annual rent increases in recent months, with median recruitment rents rising 40% between March 2021 and March 2022 in Portland, Oregon. According to Redfin..
“The way out of this is to add rental units to the market,” Benny Waller of the University of Alabama Alabama Real Estate Center said in a statement. “But given supply chain issues and the slow pace of government approval faced by developers before they put the shovel on the ground, it’s realistic to expect a large number of new projects in the short term. Not. “